33 More days to benefit from your own tax payer dollars!!

The Cost of Waiting!

($350K Property, 5% down payment)

($200K Property, 5% down payment)

Take advantage of the Government Buyer Tax Credits while you can! Your tax dollars are paying for this benefit. Why not get back some of your own hard earned money while you can!!!!

And the house finally closed.....

Another Suwanee home sold!! But, it wasn't without some hurdles. Now, these are not your ordinary hurdles, mind you.

The first delay was due to the lender requiring the buyer to change from an FHA loan to a conventional loan. This would require the buyer to put 20% down instead of the 3.5% required by FHA. Ok. The buyer agreed, reluctantly, but he loved the home and wanted to move forward. The first appraisal from the FHA loan came in at contract price.

But, another appraisal was required because of the different loan program. Ok. The appraisal was ordered and completed (delayed the closing another 7-10 days) and came in higher than contract price. Wow, that should make the buyer happy, right? Should really make the lender happy, right? Because now the buyer has lots of instant equity, right? Wrong! Because the value came in HIGHER than the contract price, the new HVCC "government" regulations kicked in and required to lender to send the appraisal to a field review, which is essentially a third appraisal. Time marched on, delaying the closing for a third time. Finally, the field review came back and the contract price (though lower than the appraisal price) was approved.

A couple of days after that - we closed!

All in all, the delay was about a month. A great big Thank You to both the buyer and seller. Much patience was required but we made it happen without taking anybody out. That's real estate today!  

It's the Worst of Times...It's the Best of Times

It's the worst of times (sellers). It's the best of times (buyers).

But, one thing is for sure. It will not be like this forever.

Buyers! Did you know the buyer tax credit for a potential of $8000 runs out in April? You must be under contract to purchase a home by then, and then it must close by 6/30/2010. Did you know interest rates are still at historicial lows, usually around 5%?

Sellers ask me "why should I even try to sell right now? Shouldn't I wait till Summer? Maybe the market will pick up then".

Well, let's take a look at that.

Elyce Glink, host of "Expert Real Estate Tips," an Internet video show, and many other real estate experts expect foreclosures to flood the market in the near future as interest rates adjust. Believe it or not, housing inventory  is down considerably, compared to this time last year. Why wait to be competitive with the many foreclosures expected to enter the market this year? If you have a home that has been well maintained and shows well, buyers are thirsting to see "nice homes", not just foreclosures.

And, Sellers, it's not just "first time home buyers" who may qualify for a tax credit. If you have been in your home for five of the last eight years, you may qualify for up to $6500 tax credit too. Again, the interest rates are phenomenal. Purchasing a home this time next year could quite possible be 2-3 points higher as inflation sets in, as many economic experts predict.  

With "motivated buyers" on the prowl, lower inventory for buyers to choose from, and outstanding interest rates, it looks like a perfect time to sell. It may be as good as it gets for the Seller of 2010. Don't miss this opportunity!  

FHA to Allow Flip Sales?

Rumor has it....FHA will now allow flip sales. Is this true?

Here is the response from prominent closing attorneys, Weissman, Nowack, Curry and Wilco:

As a matter of fact, yes, subject to some restrictions. Up until now, FHA would not insure a loan if the sales contract was dated within 90 days of the seller's purchase of the property. In other words, to qualify for FHA financing, the seller had to have owned the property for longer than 90 days. However, by memorandum dated January 15, 2010, David H. Stevens, Assistant Secretary for Housing - Federal Housing Commissioner, issued a one year wavier (effective February 1, 2010 through January 31, 2011) from this. Starting February 1, 2010, FHA will insure a loan even though the seller owned the property for less than 90 days.


The following conditions apply: (1) the transactions must all be arms-length with no identify of interest between buyer and seller or other parties to the transaction; (2) if the price is increasing 20% or more (i.e., seller buys at $100,000 and, within 90 days contracts to sell at $120,000 or more) then the lender must justify the increased value by maintaining a 2nd appraisal or other evidence of renovations, repairs, etc. and order a property inspection. The inspection does not need to be FHA approved, but can have no interest in the property or relationship with the seller. The inspector must be hired, and paid, by the lender, although the lender can pass this expense along to the buyer. This wavier does not apply to reverse mortgages.

Investors are going to love this.....

2009, THE YEAR IN REVIEW

Highlights:

• Our new Prudential Georgia Realty office opened at Suwanee Town Center in January
• Valentine's Day Open House to thank past clients
• Buyers had incredible Buying Power, interest rates are low and $8000 Buyer tax credit
• Suwanee City Hall was completed, as well as rest of retail buildings
• Spectacular Spring...not too much rain, just right temps
• My Army son completed his Associate Degree and didn't deploy overseas this year
• My teenage son got his driver's license in August (see lowlights too)
• Sugar and Spice (my puppies) continue to add joy and love
• Seller tax credit added in October
• Extended buying season lasts into November, due to Buyer tax credit 
• Much less inventory on the market...good for sellers

Lowlights:

• Short sales are the most dreaded transaction, for agents, buyers and sellers
• Average sales price down about 17% from same time last year (Suwanee, Single Family)
• My teenage son got his driver's license in August
• Bank owned properties are often good deals for buyers, but must navigate thru the "our way or no way bank mentality"
• Unprecedented flooding in the Fall wreaks havoc
• Appraisal values continue to be nail biters (many appraisers not familiar with area due to new government rules) 
• Slower than normal summer buying season
• Conventional loans harder to get
• Much less inventory on the market by the end of the year...less choice for buyers, precursor for sellers market

Words to live by in 2010:

Life isn't fair, but it's still good.

Don't take yourself so seriously, no one else does.

However good a bad situation is, it will change.

Frame every so called "disaster" with these words: In five years, will this matter?