The Team Nia Blog

Resulting rising home prices have been consistent for most residential real estate markets during the last 10 months as cited by Real Estate Trends Magazine August 2012 issue…increasing rents, low foreclosure inventory, still historic low interest rates, and this new buyer awareness/frustration has increased unit sales and most recently sales prices. Motivated investors and first time home buyers are still greatly influencing what I call “multiple offer situation” market, defined as when buyers are competing with other buyers in a market with limited inventory. All this during a time when the real estate recession is termed “over” by most financial gurus. Now what do you do when you are found in a situation where you are buying the most affordable home at the most affordable price at the highest price..thereby outbidding other buyers??? How do you get the winning bid without losing your head or your wallet during the process?

First, make a prompt decision. Be savvy about making your offer.
Understand:

• Market Value
• Evaluate rehab/repair/holding costs accurately
• Offer place your HIGHEST and BEST offer FIRST…don’t wait until other buyers step in and bring up the seller standards

Please don’t wait until they call highest and best…they most probably will, especially for well priced homes. Use your realtor to understand your buying power, real estate trend, and current market value.

Second, include a large earnest money deposit…the amount of earnest money provided in the offer may help establish greater validity and or credibility vs other buyers… if you are ready, willing and able..prove it!!.

Third, try to establish short inspection and appraisal contingencies. To the seller, timing is of great consideration. They want quick closings!!

A final word of advice to all my frustrated buyers…”Patience is a Virtue.” Please understand that this is, I believe, our first “multiple offer market” in US history…so stay adamant about your purchase, stay informed, be proactive, and trust your agent. You are still buying in a “foreclosure priced market” and the opportunity still remains for all the reasons I hereby described….don’t get carried away with all the outbidding. Use all the tools and resources available to make an assertive decision, be prompt and be aware!!

Angie Riano
Virtual Properties Realty
404.993.1912

Mortgage payments at lowest level in decades

I want to share an excerpt from the April 2012 issue of Money Magazine. It is encouraging to know that you can own a home and pay less than you would for rent. I hope that first time home owners and homeowners desiring to downsize or move up in homes will take advantage of the home prices and mortgage rates.

(Money Magazine) — For today’s homebuyers, the weight of the monthly mortgage bill is the lightest it’s been in decades.

Put 20% down on a median-priced ($154,400) existing home and your payment will come to $616 a month, only 12.1% of the median U.S. family income.

In 98 of the top 100 metro areas, it’s now cheaper to buy than rent.

“If you have good credit,” says IHS Global Insight economist Patrick Newport, “this is the best time in 40 years to buy.”

Want to trade up? You may think the buyer of your current home is getting a deal, but you might get an even better one on your next place.

Here to Serve
Velvery Tillmon
Virtual Properties Realty
770.378.7918

Starting January 1, 2013, there is 3.8% surtax on certain investment incomes of upper-income individuals. It is not likely to affect most homeowners who sell their primary residences next year. Unless you have an adjusted gross income of more than $200,000 as a single filing taxpayer, or $250,000 for couples filing jointly ($125,000 if you’re married filing singly), you probably won’t have the surtax.

When you sell your home for a substantial profit, and your adjusted gross income for the year exceeds the $200,000 or $250,000 thresholds, you should be careful. The good thing is that the surtax does not change the current tax-free exclusion on the first $500,000 (joint filers) or $250,000 (single filers) of gain you make on the sale of your principal home. Any profits more than these limits are subject to federal capital gains taxation and could expose you to the new 3.8% surtax.

In order to lower your capital gains, keep good records and receipts. Keep proof of improvements you have made to the property and all expenses connected with the house. These include closing costs such as title insurance and legal fees. Ask a tax professional for advice.

Lauren Duren
Virtual Properties Realty
404.514.6935

During the 30-day sales period ending July 5, approximately 211,000 homes were sold in 98 of the top 100 metropolitan statistical areas, research firm DataQuick said Thursday.

Sales overall rose 12% from the same period a year earlier and 10.6% from 2009 levels.

Home prices also went up with the median price hitting $193,000 on July 5, up 6% from a year ago and 4.3% from three years ago.

In a little over a month, the median sales price rose from $186,000 to $193,000.

The DataQuick report analyzes 66.25% of all U.S. Home sales, excluding the key markets of Louisville and Wichita.

The moral of the story:  Yes, it is time to consider that home purchase.  When?  TODAY!  Call us to get the process started, there are several required steps to make it happen quickly.  Happy house-hunting.

Virtual Properties Realty | 678.256.3005

You may have noticed how much the market has changed. Homes are selling very fast in the 100k and under price point. If you see a home and call to inquire about it, it is already under contract. You may also find that some homes are calling for highest and best offers by a certain date,  because they received multiple offers on it.

The truth is that the supply of homes are drying up and soon enough the prices will start to climb again. Lots of buyers are beginning to realize that this is happening and are starting to bid at the list price and above in order to have a shot at getting the home. Gone are the days of bidding low and getting the deal. Buyers beware!

Paulette Warner
Virtual Properties Realty
770.572.9898

Buying your home is an elaborate process full of legalities, pre-printed contracts, fine print disclosures, deadlines, and complex terminology. Any real estate sale can easily turn into turmoil. Your real estate agent’s helpful assessment, tools, knowledge, and experience can better guide you through some unexpected trials and turns. Below I will point out some issues that in my opinion are most commonly encountered. Please make sure you discuss your options with your agent, for every sale is different, every contract is different, and every sale has different deadlines and exclusions that may narrow or broaden a buyer’s options.

One of the first speed bumps you may come across is finding unexpected faults in the buyer’s home inspection. If hazardous conditions are found, are out of building code, or the home is in such deplorable condition that it represents a safety concern, then a buyer, if still within the contract deadlines, has the option of 1-) terminating the contract, 2-) accepting a seller reduction on the sales price or 3-) performing repairs at buyer’s cost and with seller’s written consent. If the purchase is not contingent on a financing contingency then the buyer can still opt to buy the house as is.

You may also come across a seller that changes their mind about the sale. They can default on their obligations of their sale and may submit the buyer with a termination. Buyer may have the option at his/her discretion to sue for specific performance.

It is the seller’s responsibility to help provide for a clear and insurable title. If a situation arises in which the title cannot be cleared and is not insurable due to a lien on a title from outstanding debts, tax issues, or liens recorded against the property, then a seller may be unwilling or unable to provide clearance. The sale may unfortunately fall through and the contract may be terminated by either party with no remedies for default.

The appraisal contingency is another arduous step in the purchase process especially during this foreclosure market. Most of the properties listed have been listed based on the broker’s price opinion of the property’s market value. If obtaining financing, you and your lender will want the house to appraise to at least the loan amount. If the house was not priced accordingly and it does not appraise, then buyer and seller, if within contract deadlines, will go back to negotiating sale price. If the seller is unwilling or unable to negotiate, the buyer may find himself outside of the contract with no remedies for default. The buyer at this point is liable for appraisal costs and home inspections if already performed but earnest money is 100% refundable if appraisal and disclosures were made within the negotiated appraisal contingency time.

Thankfully, the real estate business is conducted by licensed and informed real estate professionals, inspectors, appraisers, and real estate attorneys that are prepared to deal with these issues with all interested parties’ interests in mind. Please keep in mind that remedies for default may differ according to contract language. A real estate attorney may in some cases be the best source of information for contract legalities. Take note of any red flags, understand your options, keep a careful eye on the coming deadlines, understand disclosures and contingencies, perform inspections, and rely on your real estate professionals to guide and inform you so that your real estate purchase will be as smooth as possible.

Angie Riano
Virtual Properties Realty
404.993.1912

Throughout the United States there are a large number of homes on the market. According to MSN Money there are 10 cities that investors should pay close attention to. Please find below the top 10 markets (recommended by Reis) to buy a rental property and cash in on rising rents and dwindling supplies.

10. Las Vegas, NV
9. Orlando, FL
8. Colorado Springs, CO
7. Memphis, TN
6. Jacksonville, FL
5. Houston, TX
4. Atlanta, GA
3. Columbus, OH
2. Phoenix, AZ
1. Tulsa, OK

I am pleased to say that Atlanta, Georgia makes the list at number four. Virtual Properties Realty is here to service you when acquiring your real estate property. I am looking forward to getting you closer to taking checks to the bank, so please call to preview a property.

Here to Serve

Velvery Tillmon, Realtor
Virtual Properties Realty
770-378-7918

For more information on buying or selling a home, please visit our website at www.TeamNia.com

In a follow-up to my earlier posting, “Fence Sitters”, I am happy to report my fence sitting client I previously mentioned has decided to purchase. And in his own words, “It is time to buy as there are too many favorable indicators and I think we are at the bottom”. I won’t bore you with a lot of data, but will highlight some positive economic indicators.

• Buying activity for first-home, second-home, and investors have all increased in the last three months.
• Foreclosure sales have increased as many investors are ramping up their buying activity.
• And with area rental rates increasing, buying a home is more affordable than renting.

A recent nationwide survey showed in 98 out of 100 metro cities (including Atlanta and surrounding areas) that home ownership was cheaper than renting.

So in summary, when you consider these points as well as the ever important tax benefits of home ownership – it’s time to buy!

Lauren Duren
Virtual Properties Realty
404.514.6935

For more information on buying or selling a home, please visit our website at www.TeamNia.com

Realtors recently attended the National Association of Realtors(NAR) legislative meetings and trade expo in Washington DC. Approximately 14,000 of my fellow real estate agents in our organization rallied on Capitol Hill, urging lawmakers to “protect the American dream” of home ownership.

Of course, it is no surprise that we Realtors advocate maintaining the status quo on all four tax code provisions. These legislative positions, which I do admit help our members and other Real Estate Professionals thru-out the nation, are anything but “we-win-you-lose” propositions.

Here’s how the four recommendations from our NAR will benefit millions of present homeowners and future homeowners as well as the nation’s economy:

• Mortgage interest deduction:Although acknowledging that the country must address its budget deficit, we are strongly opposed to any legislation that would reduce or eliminate the mortgage interest deduction, the federal income tax deduction for interest paid on debt secured by a first or second home.

  Under current law, taxpaying homeowners are allowed to deduct the interest paid on their first and second mortgages up to $1 million of home acquisition debt plus interest paid on up to $100,000 of home equity debt. Home acquisition debt means debt used to buy, build or substantially improve your main or second home. IRS Publication 936 provides detailed guidance on home mortgage deductibility.

• Property tax deduction: Similarly, we oppose any legislation that would reduce or eliminate the federal deduction for state and local property taxes. State and local governments rely on that tax revenue for general obligations, roads and schools.

• Capital gains:Currently, homeowners are allowed to exclude from taxation the first $250,000 ($500,000 for married couples) of capital gain upon the sale of their home. Although many American taxpayers are carrying capital losses these days, the prospect of someday selling one’s home and walking away with a $500,000 tax-free capital gain is a very strong incentive in the home-buying decision.

  A capital gain is the difference between the home’s net selling price and the taxpayer’s cost basis in that home. A homeowner’s net selling price is the sales price less commissions and other fix-up costs incurred immediately before its sale. A taxpayer’s basis is the home’s original purchase price, plus the closing costs (but not costs relating to any mortgage), plus the cost of any capital improvements made to the home. For primary residences, depreciation does not come into play, because for federal tax purposes you cannot deduct depreciation expenses.

  Capital improvements are, generally speaking, improvements that have a useful life of more than one year. IRS Publication 523 addresses the tax implications of the sale of your home.

  Capital gains and home equity are often confused. Home equity is the difference between the home’s market value and the total outstanding balances on all mortgages secured by that home. Home equity is created in two ways: first, by the overall market appreciation in the home’s value. The second way is by the monthly amortization. In a self-amortizing mortgage, one that will pay itself off over time, a portion of each monthly payment goes toward the interest for the use of that money, and a portion goes to reducing the outstanding principal. The amount applied from each monthly payment to the principal increases over time in an amortizing mortgage.

  For many Americans, the equity built up in their homes may be the only “savings” they can afford. If this very valuable tax benefit were eliminated, many homeowners would see their life savings sapped by an enormous tax bill.

• Mortgage Forgiveness Debt Relief Act:Finally, Realtors advocate extending the Mortgage Forgiveness Debt Relief Act, set to expire Dec. 31st. The law directs the Internal Revenue Service not to tax homeowners who have had mortgage debt forgiven by their lenders. Before Congress stepped in, this tax on so-called “phantom income” was a double whammy.

  The tax code defines forgiven debt to be taxable income. So before the new law, if a homeowner convinced his or her lender to accept a short sale and forgive the deficiency between what was owed on the mortgage and the short sale price, the IRS sent the homeowner a tax bill on that deficiency amount.

  This sad situation often resulted in taxpayers losing their home and still being subject to an enormous tax bill. If Congress fails to extend this benefit, many thousands of “underwater” homeowners may find themselves in this exact situation.

My hope is that this article provides you with pertinent and usable information as well as some insight to how Realtors members individually and as an organization advocate for you way beyond just the “Selling and Buying Process”.

For the BEST & MOST PROFESSIONAL RESULTS, select an agent who is a REALTOR member!

Charlie Todd
Virtual Properties Realty
678.794.4187

For more information on buying or selling a home, please visit our website at www.TeamNia.com

When you buy a home, whether it is new or a resale, things will happen and you must respond. Anything from needing a new water heater, replacing an electrical outlet that does not work, repairing a dishwasher, or getting a new garage door that works properly can happen at any time. Also, your home will require some routine maintenance. These are responsibilities that you may not have thought about before simply because you did not own a home. These things include: mowing a lawn, having to clean the gutters, changing filters, having to repaint outside trim, or something as simple as having to change a bulb in your 20 foot ceiling, just to name a few.

It is easy to get overwhelmed, but you can accomplish all of the things you need to do. If possible, use some time during the weekend to do what you can. Don’t let small tasks stack up. Then if possible, hire a professional lawn service to take care of the lawn and haul away the debris. Ask a neighbor’s child to rake leaves for a small fee. Call a handyman to do several chores at once and pay him for the day.

There are other sources of help. Does your HOA know of someone that will work for a reduced cost? Call and ask; usually they are a wealth of information. Trips to The Home Depot or Lowe’s can lessen the burden of many tasks as well. Let them help you; they love their jobs and want you to succeed!

Finally, once you’ve lived in the house for a full year and made it through all of the seasons, congratulate yourself! You have survived, and hopefully your home is still in one piece! You are now a pro of sorts and can help someone else!! Pass the knowledge on…

Sincerely,

Chrissy Wise-Cooper
Virtual Properties Realty
678.227.91589

For more information on buying or selling a home, please visit our website at www.TeamNia.com