Reasons You Need a REALTOR®

1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 71days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.

3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.

4. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.

5. REALTORS® provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

6. REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS®, a trade organization of more than 1 million members nationwide. REALTORS® subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

2007 PMI Tax Deduction

Today the multi-faceted tax bill (H.R. 6111) that includes, among a host of other provisions, a very narrow new income tax deduction for some mortgage insurance (MI) premiums. It is not known when or if the IRS will provide additional guidance for this provision, as it will be in effect for only one year and will be available only to a limited number of homebuyers.

These are the key features of the provision:

• The deduction applies only to MI policies issued in 2007 for homes purchased in 2007.
• The deduction does not apply to premium payments for policies issued before 2007.
  
• The deduction applies to private MI, and to FHA, VA and Rural Housing premiums, as well. The MI premium amount will be treated as mortgage interest.
  
• The new deduction is available only to individuals or families with less than $100,000 adjusted gross income (AGI) on a joint or single tax return ($50,000 for married filing separately returns).
  
• The provision phases out by 10% for each $1000 of AGI over $100,000 ($50,000 for married filing separate). Thus, there is no MI deduction for individuals or families with AGI above $110,000 ($55,000 for married filing separately).
  
• Individuals who claim the deduction are not permitted to prepay premiums that are otherwise due after 2007. The provision expires for any premium payment that is paid or that accrues after December 31, 2007.
  
• If a mortgage (other than a VA, FHA or RHA mortgage) is prepaid during 2007, the unamortized premium balance on that mortgage is not deductible. (The unamortized premium balance is the amount of premium that would have been paid in a particular year if the payments had extended throughout that year.)
  
• The homeowner will receive a statement from either the lender or the MI provider stating the proper amount of the MI deduction. That information will also be provided to the IRS.
  
• The MI deduction will not be available if an existing mortgage is refinanced in 2007 for an amount larger than the amount being refinanced.

Gwinnett County Sugarloaf Extension Project - Google Earth Overlay Map

Many Gwinnett county residents are already aware of the proposed Sugarloaf Parkway extension, but even if you have attended the meetings or looked at the plans online it is difficult to visualize exactly how the Lawrenceville area will be effected. To help do this I created an overlay map in Google Earth using stitched together blueprints from the Gwinnett county website. You must have Google Earth to view this map. It can be downloaded for free here. To download the overlay map click here (1.3mb).

The proposed project will create a 4 lane road from the current intersection of Sugarloaf Pky and Grayson Hwy to Hwy 316 between Winder Hwy and Harbins Rd. This new section of Sugarloaf Pky will be accessible from intersections at SR-20, New Hope Rd, Martins Chapel Rd, Campbell Rd, and a half-cloverleaf interchange at SR-316.

The Pros and Cons of Condos

• Condominiums and townhouses offer an affordable option to single-family homes in most areas. But consider these facts before you buy.
  
• Storage. Some condos have storage lockers, but usually there are no attics or basements to store belongings.
  
• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you hate yard work, this may be the perfect option for you.
  
• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.
  
• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home.
  
• Security. Many condos have keyed entries and or even door attendants. Plus, you’ll be closer to other people in case of an emergency.
  
• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.
  
• Resale. The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar. Single-family homes usually are more individual.
  
• Freedom. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.
  
• Proximity. You’re much closer to your neighbors in a condo or townhome. If possible, try to meet your closest prospective neighbors before making a decision.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Housing Market Status - Toll Brothers CEO

Today on CNBC the CEO of national home builder Toll Brothers reported that some markets "seem to be dancing on the bottom to slightly above". While his comments were directed at national trends he also pointed to the current combination of lower interest rates, a strong stock market, and low unemployment typically pull housing out of a slowdown.

While the Atlanta market has not suffered from the drop in home prices that have been experienced in areas with intense speculative buying, we are definitely in a buyers market in the majority of areas and price points. For first time home buyers and investors the current combination if increased inventory and low interest rates make this an ideal time to buy. While interest rates are not expected to move up much in the next few months I believe that once any hint of an official housing bottom is recorded that the media will widely report this empowering many sellers with the belief that they don't need to forfeit as much to get a transaction done.

For current home owners selling and moving up to a higher price point the "buyers market" effects on their more expensive home should still leave them in a strong net position. As always my buyer and seller clients find themselves extremely will informed about current market values and trends enabling them to make prudent decisions in any market condition.

October Pending Home Sales Report

The pending home sales report for contracts signed in Oct. came in 13.2 percent lower than the same time last year and 1.7% lower than last month. Nov. and Dec. are expected to continue trending slightly lower as is expected during the holiday season. While the Atlanta market is not truely experiencing the dramatic downturn that the media is focused on, buyers can us this to their advantage and get contracts in place for closings in Jan. Once the media picks up on any sign of a positive turn sellers will believe they are back in the drivers seat and will not be as open to negotiation. Email me today to get started.

Steps to Prepare for Homeownership

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report.

6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.

7. Organize all the documentation a lender will need to preapprove you for a loan.

8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10. Find an experienced REALTOR® who can help you through the process.



Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®Copyright 2005. All rights reserved. www.REALTOR.org/realtormag