What is "FHA" and why is it so important

What is "FHA" and why is it so important

With the announcement this past week that one of my favorite neighborhoods "Cross Creek" getting FHA certification there has been a lot of discussion of what this means.  A lot of these comments have been grossly inaccurate. Getting FHA certification can be a really good thing.  FHA certification means that a property in a specific community is eligible for a FHA mortgage. Most seasoned buyers opt for a conventional mortgage because in most cases it best suits their needs.  However for a first-time home buyer a FHA mortgage is a big deal and this is why.

A recent article in the New York Times: Home Ownership and Wealth Creation  discussed how homeowners had 35x more wealth than those that rent. To understand how that is possible see my previous blog post 660K.BillForrest.com.

The basis to all of this is home ownership. Young professionals are starting to realize that to build real wealth AND lower their monthly housing costs ownership is the way to go, but there are real obstacles to acquiring that first home.

Young professionals today, the kind that every community wants, are carrying a huge burden.  These are the doctors, lawyers, and other highly educated young people that are early in their careers and most all of them have huge college loan debt as the below graphic shows. U.S. student loan debt now exceeds $1.2 trillion and is increasing at the rate of 14% per year.

So what does this have to do with a FHA Mortgage?

Everything.  Student loan debt is the biggest obstacle facing first-time home buyers. There are many requirements for a buyer to qualify for a home loan:  Down payment, Income, Credit Score, and Debt Ratio are the primary factors.  Of these DTI or Debt-to-Income Ratio is the biggest challenge.

Conventional mortgages in general have a cap of 43% DTI.  Meaning that a borrower's total monthly debt cannot exceed 43% of their monthly income.  A FHA home loan allows for most borrower's up to and as much as 56-57% DTI. As a young professional carrying a huge student loan debt this is the difference between becoming a home owner or not. 

FHA does have some other great benefits such as requiring only a 3.5% down payment vs. 5% on conventional, greater flexibility on gift funds from Mom and Dad, lower credit score requirements, and in most cases a lower interest rates. 

WOW this loan sounds great why doesn't everyone use it?   It has a huge downside.  FHA home loans require Mortgage Insurance for the entire life of the loan and it is calculated at a much higher rate than a conventional mortgage.  That is why even though it has a lower interest rate the monthly payment is much higher than a conventional mortgage for the same purchase price.

Why this is important to communities like Cross Creek?

It increases home values due to demand. Cross Creek is a great community with a unbelievable value at its current price points.  However until last week a huge portion of the buying public were unable to purchase a home in the community.  Intown Atlanta is filled with young professionals that can only purchase a condo with a FHA loan. Most buyers in this 100-200K price range are young professionals. This is a huge key segment of the buying public for Cross Creek. The seasoned 2nd and 3rd time home buyers are looking at higher price points due to higher income, equity resources, and larger households needing larger living spaces.

Getting this FHA certification is a huge win for Cross Creek. Now suddenly there are as many as five times the number of active buyers considering purchasing in Cross Creek because of this FHA loan availability.  For current sellers this is an awesome thing.  Higher demand brings higher sales prices through competition for a limited number of listings.

For our older residents having FHA certification it now means they can take out a reverse mortgage and that is another conversation for another time.....

For those of you that are grammar hawks I know that there are huge grammatical flaws in my writing style.  I am an excellent REALTOR with a strong proven record.... I do not hold myself out to be a great writer....lol...  All the Best, Bill    

 

Community Focus: Cross Creek

Community Focus: Cross Creek

By Bill Forrest, Realtor

Just looking at these three photographs you would think that you are far outside the perimeter at a golf and tennis retreat in the foothills. Close but not quite so.

Cross Creek is a hidden gem located in the heart of true Buckhead with-in the exclusive 30327 zip code. The feeling you get living here is that you are far removed from the city. Actually you are in the heart of it, just minutes to everything. This is achieved by having 122 lush acres on Peachtree Creek, just off I-75 between Moore's Mill and Howell Mill exits; Just off Peachtree Battle.

'Buckhead's Best Kept Secret' the History...

This community is not a secret but so many have not heard of it especially those that have not grown up in Atlanta. Ask anyone that lived in Buckhead in the late 70's or early 80's and with a sheepish grin they will say "Oh Yeah I Know Cross Creek."  This place was the place to be if your were single and it was the life of the party in Buckhead. There are stories that are too funny to believe that actually happened here.  I am told that they are all true. That is what happens when you mix  Delta Pilots, Braves Players, Flight Attendants, TV Personalities, and a host of other crazy fun people with generous servings of alcohol from the Cross Creek Cafe.

Now those risque days of dancing on the bar, wearing next to nothing are long gone but the vibe here is far from stoic. Cross Creek is well under way with a renaissance that is exciting to be part of and watch. It is a great place to live that offers a vibrant social and resort lifestyle in the heart of the city. Past the Cafe, Beyond the Guardhouse and the friendly gate attendants, there is a major exterior renovation taking place and the second phase is almost complete.  In addition, over the last year or so all of  the tennis courts and two of the three pools have been completely rebuilt.  As part of that the pools are being converted to salt water from chlorine. The golf course has had some renovations too.  This walking course is unique to Atlanta.  It is a par three executive short course with the longest hole being 165 yards. Residents only pay $7 for 18 holes.

The Condominiums:  Country Club Living without the County Club Price

One of the great things about being older property is that the units are stunningly huge. Many have sunrooms and even wood burning fireplaces. The 30+ floor-plans range from 850 sqft One Bedrooms, to 2500 sqft Three Story Townhouses, to even 2600 sqft Four Bedroom Flats. There is a size and floor-plan to fit just about any taste/need. There are even Studio Lofts available from time to time. Recent sales make Cross Creek one of the most affordable communities in Buckhead.

See full details at www.CrossCreekATL.com

Call me today at 404-353-9233 for a private VIP tour of our community and all that it has to offer.  I love living here and you will too.

Bill is a Associate Broker at Common Ground Real Estate Team in Atlanta,  A Division of PalmerHouse Properties more details at BillForrest.com

Still Paying Rent? How Would You Like $600,000.00?

Still Paying Rent?  How Would You Like $600,000.00?

By Bill Forrest, Realtor

If you are reading this chances are that you just don't get why home/condo ownership is such a big deal.  No worries we will show you.  You are young right?, Living in the moment not thinking about long term, and Thinking this apartment is good enough for now, Right?

Chances are if you are living in Midtown, Buckhead, or Another trendy area you are paying $1500 a month in rent for a 1 or 2 bedroom apartment or condo....with absolutely no return on your money

The Biggest Reason to Own is Building True Wealth

No, this is not a pyramid scheme or network marketing. This is what the other 65% of Americans already know. Home/Condo ownership is about building true wealth effortlessly for them, effectively for free.  

For $1500.00 a month you are currently paying you could own a great condo that has better amenities, space, finishes and appliances than your apartment in the same neighborhood.  With interest rates at a all time low it is truly cheaper to have something better by owning. An you could have $600,000.00 or more in real wealth over time essentially for free as well.

But Why? The $600,000.00 Question

Rent is just that rent.  You get nothing in return for your hard earned money.  With ownership there are two major things in play.  As you pay a mortgage you are paying off the loan.  That is not rocket science. But what makes this even more powerful is that the property is appreciating or increasing in value at the same time. Yes it is not a constant, There are peaks, valleys, and market corrections.  But history has always shown that home values consistently appreciate over time long term. Even with the recent market correction, over the last 30 years, there has been a average annual appreciation of 3.4%.  That doesn't sound like a lot of money but its surprising. lets play it forward:

(This could be much more if the appreciation rate is higher than 3.4% or if you make major improvements to the property.  Nothing in life is guaranteed but this believed to be solid and conservative.)

So with today's interest rates, For $1500.00 a month you can get a great $210,000.00 condo. ( That monthly mortgage payment includes principal, interest, taxes, insurance, and HOA.) So if you pay rent over the next 30 years you have nothing. But history shows us that for the SAME payment if you own instead, You can have built true wealth of over $543,000. Why, that 210K condo you bought in 30 years should be worth $543,000.00 or more and you then owe NOTHING on it...

Where is the other $60,000.00 you ask?

TAX REFUNDS...  Yes! the mortgage interest that you pay each month and your property taxes are tax-deductible on your income taxes.  If you have a great job and are in the highest tax bracket, that refund for you first year could be as much as $3933.47. Even better is the $81,324.57 in possible tax refunds over the life of the loan. 

Yeah that's thirty years from now, What about short-term?

Based on the above example of market appreciation of 3.4% even the first year you will see gains (some condos and homes in Atlanta are appreciating at 18% currently). Year One:  $7,140.00 equity increase and tax return of 3933.47 possible.  In year five that jumps to over $50,000 in appreciation/equity and a 5 year total of over $19,000.00 in tax returns are possible. With renting: ZERO Wealth.

Why Buy Now?

Because of the market correction and interest rates.  There is a old rule in real estate that still holds true today:  If you buy low it doesn't matter when you sell; you will make money. Most properties are still undervalued in the Atlanta marketplace and are currently appreciating as much 18% annually right now.  This of course will flatten out, but now is the time to buy.  By most all accounts, Interest rates are at a all-time low and are only going to go higher as the economy expands.

How Do I get Started?

Call me and I will help you find the right lender for you to reach your real estate goals. Once we have your loan secured; then I will help you find your 'Ideal Home.' Best of all my services as a Buyers Agent are free. A Buyers Agent works for you, Their loyalty, confidentiality, and fiduciary responsibility is to you, but paid for by the home-seller. They agreed to pay a buyer's agent commission when they listed the home for sale thus free to you. Give me a call at 404-353-9233 or E-mail and I will be happy to send you my guide to home/condo ownership that explains how the process works, how I make it fun & painless for you, and why NOT having a Buyers Agent can cost you thousands.

Another Good Article about why home ownership can be found here:

http://www.businessinsider.com/10-major-advantages-to-owning-a-home-2014-9

More about Bill can be found at BillForrest.com

Search the FMLS like an Agent in real-time at www.SearchIntown.com

Does a Kitchen Remodel Provide a Return on Investment?

Does a Kitchen Remodel Provide a Return on Investment?
-Bill Forrest, Atlanta Realtor

The short answer is YES
But the bigger questions are what type of remodel and how much of a return...

As the home owner the actual cost of a remodel is dependent upon your own skill sets and how much of the labor you can complete yourself. A lot of these projects can be a sense of great pride in knowing "I did that."
A lot of our local Home Depots, Lowes, and Ace Hardwares provide free or low cost classes teaching and providing hands on training to expand these skill sets.

But first, CALL ME or another favorite REALTOR to evaluate your proposed project if the return on investment is a major goal or concern. We can help you maximize the return by providing helpful insight into what is a 'real trend' v. a 'fading fad' especially in countertops, finishes, flooring types, colors, etc. We can also make recommendations of subs and service providers that have a proven track record. But, most importantly, We can alert you to market conditions so you do not over-improve and diminish your return.

In a lot of cases a Kitchen Remodel can be defined as minor but impactful

There is a lot of talk about reuse, recycle, and sustainability these days and that can have the biggest impact on defining the scope and costs. In a lot of cases the current kitchen cabinets are very functional and just look dated. Replacing the entire cabinet box and exterior can be very costly and push the project into the "Major" category. Simply refacing the cabinets can be an effective technique to save a lot of money and time without losing the wow factor. Of course knocking out walls and complete reorientation of a kitchen design can in some cases eliminate the ability to reuse the current cabinetry.

Costs and Returns

Research for Atlanta, Georgia has provided some interesting results according to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com). They studied minor vs. major kitchen remodels in the area
The findings are that a Minor Remodel has a higher return at 79.7% and a Major Remodel has a 74.9% return.  The average minor remodel had a cost of $18,889 and major tipped the scale at a average cost of $54,798. As you can see there is a big difference in costs.

The question of return is a market and marketability question that only your REALTOR can answer.  Give me a call at 404-353-9233 and I would be happy to help you evaluate your plan, possible options, and provide insightful suggestions.

Home in the Picture is Available for Sale: Click here for Details

My Recommended Service Providers can be found by clicking here


Other costs info and definitions:
MINOR KITCHEN REMODEL DEFINED: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware.Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
MAJOR KITCHEN REMODEL Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom cherry cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glasstile backsplash; built-in refrigerator, cooktop, and 36-inch commercial grade range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven. Install
high-end undermount sink with designer faucets and built-in water filtration system. Add new general and task lighting including low-voltage undercabinet lights. Install cork flooring, cherry trim.

Defoor Ferry Townhomes Break Ground

A lot of questions have been bounced around about this project at 2108 Defoors Ferry Road next to the Century 21 Office and the Shell station.

There are 23 to 25 townhouses going in on this deep tract complete with 2 car garages. The exterior is to be brick with other exterior accents. They will be a mixture of 3 and 4 bedroom residences, high-end finishes, and sized 2300 to 2800 sqft.  The floor plans and designs are currently being finalized.  Check back for future updates...

As always, I am happy to answer any of your real estate questions.  I am just one call away at 404-353-9233, email bill@billforrest.com, or on the web at BillForrest.com

Peachtree Hills is having a very interesting market cycle.

Peachtree Hills, like at lot of the neighborhoods inside the perimeter, is in a blended market cycle.  There is a 8 month supply of available homes at current sales levels. This usually denotes a buyers market. But, in this case that is not the whole story. Peachtree Hills is a community that has many different types of homes, many different sqft ranges, and  in many different states of condition. What the trends are showing is that there is ample supply of homes creating a buyer's market if you are looking in the $400,000 to $575,000 price range.  If you get outside of this range it is definitely a sellers market.  But it is a strong market with homes selling for a average of 99% of list price in the last 90 days.

For full details of your neighborhood's 90 day market trend visit MyIntownHomeValue.com  This is a really cool interactive report that shows everything going on in your community market wise (or the one you want to move to) Like a 401K report for your home. Best of all its free and no spam!

As always, I am available to answer any and all of your Atlanta real estate questions, Just give me a call at 404-353-9233 or email Bill@BillForrest.com

Decluttering - Is so important when preparing to sell your home - here's how

One of the most difficult tasks in getting a home ready for sale is decluttering.  Decluttering is crucial to presenting your home at its best to perspective buyers. The only thing more important is cleanliness. So to help with this I wanted to share this great article from one of our great service providers Drab to Fab Organizing.  -Bill  

Organizing 101: Using the 3 M’s to C.O.P.E.

In a world filled with so much information, literally at our fingertips, how do we narrow our focus to practical and applicable tools for our daily lives?  And how is that different in the world of ADHD?

The solution I use with my clients: the 3 M’s will help you COPE.

Clutter represents deferred decisions. Nowadays, we move so fast we are often distracted. We can’t or don’t exercise the discipline needed to make quick, in-the-moment decisions and follow-through on making them happen. This is especially true of the flood of stuff in our homes. Consequently, surfaces are covered and piles accumulate.

When we do decide to buckle-down and get organized, many of us lack the ability to create order out of chaos, to choose the right system of containers & tools. We are overwhelmed by the merethought of where to start.

To reduce clutter and create some breathing room, set a goal to tackle the 3 M’s: Minimize, Maximize, & Maintain.

Minimize To find some peace in your hectic life, you must minimize. This is easier said than done with ADHD in the mix, so consider finding a “Body Double” who will help you purge, and then you do the same for her. This can be a friend, or a paid organizer. Think in terms of 4 piles: trash, recycling, keep or donate.

Maximize Learn to maximize the way space is used and take advantage of the available space you have. Start small, with one area at a time, and tackle your home surface by surface, closet by closet.

Maintain Order is a constant process, fluid and changeable, and there is joy in the journey. When we continually minimize the amount of items in a space, maximize the use of the available space, and pay attention to keeping it maintained, we have a plan to keep things organized and peaceful.  Once you’ve decided what to keep, and are on the path to maintenance, it’s time to take things to the next level of detail and C.O.P.E:

• Categorize (group like items together)
• Order (put things in order)
• Proximity (put things near where they will be used)
• Ease of Use (make sure things are easy to access)

Don’t underestimate how simple this sounds—it’s really effective to put a little bit of extra thought into where and how to store items you decide to keep.

Now, some people would prefer to have someone else handle organization, leaving them free to do other things that are more natural and enjoyable, and there’s no shame in that! When you have ADHD it can be particularly helpful to have support and assistance in the process. Just in case you want to tackle organization on your own – and remember to consider a body double if you do — here are a few more tips to keep you on track:

1. Set boundaries around when, where, and for how long you are going to “get organized.” Set an appointment with yourself, use a timer, and be specific about where you are going to focus your energy. If you tend to get caught in “zigzag organizing” — jumping from room to room or area to area – then take on two projects at a time and when one gets boring, move to the other. But limit yourself to only those projects! Set a timer for 15 minutes before the end of your scheduled session, and begin to straighten up so that you can leave the space livable until your next session.
2. Start with the obvious by working with items that are already out in the open, on the floor, countertops, entry-ways, spilling out of baskets/containers, etc. Do not go pulling stuff out of drawers and closets before you have cleared out the obvious clutter. It could lead to overwhelm and possibly abandoning the effort entirely.
3. Set yourself up for success by making sure you are free from distractions. Turn off the phone, get coverage for the kids (or give them a job), don’t plan to leave in the middle of the process for another appointment, and be sure to have supplies like sorting containers, big trash bags, sticky notes for labeling, a big black marker, cleaning stuff, and the vacuum for those dust bunnies that will pop up during the process!
4. Make sure the organizing session is fun by playing inspirational music (whatever that means for you), making sure there is enough light in the space to see what you are doing, having scheduled breaks with special goodies to snack on, and having a reward in place for when you complete the task!

Finally, remember that there is no shame in asking for help, either from a professional or from a trusted friend who will keep you on track, without judgment. It helps make organizing happen more quickly, and with greater success.

The simple skills outlined above are applicable to numerous areas of life, not just getting organized. Learning them and teaching them to your children will have wide-reaching and lasting benefits.  Good luck and Happy Organizing!

Avoid Seller’s Remorse

From professional photography to pricing strategy, you’re choice of REALTORS® can affect how your home is marketed to qualified buyers. Choosing Common Ground Real Estate to list your home for sale is the first step to a faster closing and a higher return on your property investment.

As REALTORS® who keep a watchful eye on the real estate market, we’ve seen what happens when sellers choose the wrong agent: amateur photographs that don’t show homes in the best light, pricing strategies that make homes unattractive to buyers and unprofessional marketing that can damage a buyer’s opinion of a home.

 It’s what Common Ground Real Estate calls seller’s remorse. Here’s how we avoid it:

Elite Marketing

Home Photography

Common Ground Real Estate is one of the few (if not the only) full-service real estate company in Atlanta that offers professional, HDR-merged photography for homes at every price point. Check out several examples of our work.

Property Books

Metro-Atlanta’s two major listing services, FMLS and GAMLS, allow 25 photos and a property description no longer than 756 characters, even though some homes have so much more to say. See some of our marketing booklets we’ve made for our clients.

Custom Websites

While many agents may purchase domain names linked to templated fliers and a few additional photos, we design interactive sites with beautiful slide shows and professionally written property descriptions  that can elevate even the finest of homes.Learn more about the custom sites we design for our high-end listings.

Want to learn more?  just reach out to Bill Forrest at 404-353-9233 or Bill@BillForrest.com 

BillForrest.com

Collier Hills is in a Seller's Market

It is not surprising that Collier Hills is in a seller's market cycle.  Location is the basis for real estate values and Collier Hills has it.  There is only a 3.8 month supply of available homes at current sales levels. This denotes a very strong market.  What is even more telling is the sold to list pricing ratio.  In the last 90 days homes have sold for a average of 99% of list price.

The good news for Collier Hills is that the neighborhood is showing solid price gains but is not over heated. This is a sustainable trend.

For full details of your neighborhood's 90 day market trend visit MyIntownHomeValue.com  This is a really cool interactive report that shows everything going on in your community market wise (or the one you want to move to) Like a 401K report for your home. Best of all its free and no spam!

As always, I am available to answer any and all of your Atlanta real estate questions, Just give me a call at 404-353-9233 or email Bill@BillForrest.com

Five Compelling Reasons to Buy a House Right Now

I Thought this is a really good article about why buying is better than renting - Bill

Buying a house is a highly individual decision—and a local one—but current trends are creating a favorable situation for many would-be homeowners.

Interest rates are low, employment is rising, home prices—in most markets—are still well below their peaks, and rents are through the roof.

Every family and each individual has various factors affecting the ability and the decision to buy a home. If you live in a market where studio apartments are $2,400 per month—while nearby condos sell for $300,000—it might make sense to buy a house instead.

(Remember, a local REALTOR® always is your best resource in helping you assess market conditions.)

Five Compelling Reasons to Buy a House Right Now

1. Interest Rates Are Still Low

Mortgage interest rates are still low—for now.

A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5% rates next year. As interest rates increase, so do your monthly payments.

A $300,000 house at 4.16% with 20% down would have a monthly payment of $1,168. With a 5% interest rate, that payment increases to $1,288.

2. There’s More Inventory

As more houses enter the for sale market, prices stabilize.

“Inventories are at their highest level in over a year, and price gains have slowed to much more welcoming levels,” said Lawrence Yun, chief economist at the National Association of REALTORS®.

The upside is consumers now have more choices, if they are looking at existing homes.

New homes are another story: Yun says new construction needs to double its current production to meet market demand.

3. Home Prices Are Going Up

Home prices are rising.

The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue. However, we are still at least 20% off the peak prices of 2006.

“Attempting to buy a home when the market is at its lowest point—or to sell at the peak—is tricky,” said Jonathan Smoke, chief economist for realtor.com®.

He compares it to trying to time the stock market.

“You might get lucky one or two times, but overall, timing the market does not work,” Smoke added. “It all points to purchasing power, and that’s a reflection of price and interest rates, which will both be higher in the future.”

4. Rents Are Sky-High

If you live in a big city, then you know rent is astronomical. In San Francisco, many people are spending 42% of their monthly income to pay the rent. Nationwide, rents are rising at a 4% annual clip.

It’s not unusual to see adults rooming together in expensive cities like New York, San Francisco and Chicago, but everyone needs his or her own space at some point.

Buying a home would lock in your monthly payment and stabilize your finances with a fixed-rate mortgage. This is, of course, assuming you don’t live the San Francisco area, where the average price of a home is $1 million.

(If you’re renting and never thought you could afford to buy a house, try our Rent vs. Buy calculator to see what’s possible.)

5. Employment on the Rise

Perhaps nothing is as important to the financial stability you need to buy a home as steady employment. The U.S. economy is finally adding jobs—about 200,000 new jobs per month.

The next generation of home buyers—the Millennials—has been particularly affected by the nation’s job slump. Saddled with student loans and tight lending restrictions, many in this generation have been living with their parents to save money until the economy picks up.

If your employment prospects look good these days and the other four factors check out, then it may indeed be the right time for you to buy a home of your own.

From Realtor.com reprinted by permission

Now Under Contract - Elysian Townhome

Just heard this from my friend and fellow Realtor Max, that the $162,000 2/2.5 townhome listed on Elysian is Officially Undercontract... It just keeps getting better in 'TheCreek'

www.CrossCreekATL.com

5 Reasons to Buy Bigger Now

Thinking about selling and buying a bigger home?
You can’t afford to wait.

By Bill Forrest

We hope you’ve heard the good news: Atlanta’s real estate market is booming, largely due an increase in available loans with reasonable credit requirements and stabilized interest rates.

While it’s easier to for buyers to get the funds they need, there’s an incredible shortage of move-in ready homes. That’s where you, awesome homeowner, can help the market… and yourself.

It’s time to sell your house and buy a bigger one. Here’s why.

 1. Your property is probably more valuable now than it has been in the past seven or so years.
Source

Home prices in the metro-Atlanta area have jumped up in the past several years. In the past year alone, according to the popular property search site Trulia, price per square foot is up 20%, median home sales prices increased 14.6% and the number of home sales increased 23%. Your property probably benefited from this boost, and here’s the best way to find out.

2. The “market recovery” is really a “market correction.”

If you bought your home at the top of the market — before the crash in the mid-2000s — you’re probably worried that you’ll lose money on investment. Waiting for “recovery” to those levels really means waiting for the market to re-inflate to bloated pre-crash levels, which could take years. You don’t have to spend that long in an uncomfortable house you no longer want.

3. Finding out what your home is really worth takes seconds.

No matter what your situation, the first step to selling is to find out what your home is actually worth in today’s market. Click this link to do that for free online. You’ll have your results in about half an hour.

4. Regardless of where you stand, there are options.

Depending on your home’s value and what you currently owe on your mortgage, you’ll either be able to sell outright, sell at a loss or not be able sell because you owe more than your home is worth.

If you sell at a loss, you might be able to write it off your taxes. It could take a while to recoup the cash, but it’s worth it in the long run. If that’s your situation, I’ll put you in contact with a tax professional who can help.

If you’re underwater — owing more on your loan than what your home is worth — short sale might be your best option. It doesn’t mean you made a bad choice, or that you shouldn’t buy another home. Short sale is better than foreclosure, and my team and I can help you through it.

5. You’ll save money if you buy bigger now.

It might make sense to wait until home values improve so you can make more on the sale of your house, but the money you’ll make waiting to sell will be outpaced by what you’ll spend to upgrade later.

Say your current home is worth $155,000, but you’ve outgrown it and your dream home currently costs $225,000. That’s a $70,000 upgrade.

Prices have appreciated more than 15% in the past year (it’s actually 16.9% according to the AJC, but we’ll use 15% for simplicity’s sake.)

If the trend continues — and through early 2014 it has — this time next year, your current home would be worth $178,250 and your dream home would be worth $258,750. That’s now an $80,500 upgrade.

Sure, if you wait, your home will be worth $23,500 more than it is today. But the dream home you’ve been looking for will cost $33,750 more. That means if you wait, it will cost you $10,500 more than today and you’ll have spent ANOTHER year in a home you’ve outgrown.

And none of this takes into account the fact that interest rates are rising, which means it’ll be more expensive to get the money for your dream home as well, and you may not qualify for as much.

Let’s talk about it.

You won’t find all the answers to questions you have about selling in this blog. Every situation is different, but every seller has options. Reach out today to discuss your next move, let me earn your business and we’ll get you in an upgraded home in no time.

Call ME today to discuss 404-353-9233 Bill Forrest
BillForrest.com