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56,512 Reasons Why NOW is a Better Time to A Buy Home- Even Without Tax Credits

Now is a great time to buy a home or investment property with the historically low interest rates.  For most buyers it is even a better time to buy NOW than it was with the $8,000 tax credit which was offered to first time buyers.  Why?  With the interest rates as low as they are – 4.375% for conforming loans – you can save more money per year on interest over a period of 5 to 7 years than you would if you had the tax credit check.  Another advantage of the low interest rates is that they are available to anyone with the qualifying credit scores – not just first time buyers.    Now you wont get a check in the mail but over the life of your loan – it will be a huge savings.  Just how huge you ask?

Take a $300,000 loan with 30 year fixed loan.  Monthly mortgage payments with an interest rate of 5.25% (interest in April 2010)  would be $1,649.40/month (principal and interest).   The same mortgage amount of $300,000 with current interest rate of 4.375% produces a monthly payment of $1,492.42 (principal & interest).  A difference of $156.98 a month which translates to $1,883.76 a year.  Based on the National Association of Realtor’s statistics – most homeowners stay in a home for 5 to 7 years.  In just 5 years – a buyer would save $9,418.80.  $1,418 MORE than the $8,000 tax credit.  If you were to stay in your house for 30 years – it would be a savings of $56,512,80.  Now that’s 56,512 reasons to buy with the current low interest rates.

HISTORICAL INTEREST RATES FOR LAST 18 MONTHS

Hafa: What in the World is Hafa?

Energy Tax Credits

Thinking of a new furnace or air conditioner?  Or maybe you have been in need of a water heater or new windows?  Not only will you benefit from the immediate comfort of installing and upgrading your current systems – you will save money in the long run by using less energy and reducing your electric/gas bills.  AND you may find your improvement qualifies you for a tax credit. 

The Energy Star website  has details on the qualifying improvements and upgrades and explains how the tax works.  Check it out.  You still have 5 months to complete the work.  The deadline is 12.31.2010.

1449 Grovehurst Drive, Marietta, GA 30062

1449 Grovehurst Drive, Marietta, GA 30062 – $390,000.   Great East Cobb home in the Grovehurst Subdivision!  Great schools – East Side, Dodgen & Walton.   5 bedrooms and 3 baths.  NEW kitchen and updated paint & fixtures throughout.  This home boasts a very open floor plan and a great fenced yard.   1449 Grovehurst Drive Virtual Tour.

Is a Distressed Property Right for You?

Is a distressed property the right deal for you?

If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:

Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.

Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.

As of today June 2, 2010 - 30 year fixed interest rates are 4.625% (conforming loans), 4.5% for FHA and 5.625% for jumbo loans.  Interest Rates are courtesy of SunTrust, Laura Joines.

You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.

Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.

Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions. If you’re interested in learning more about purchasing a distressed property, email me!

1516 Howell Mill Rd, #15, Atlanta, GA 30318

Great new listing at Waterworks at Howell Mill.  This best buy town house is listed for $165,000 and offers 2 bedrooms and 2.5 baths in HOT HOT HOT West Midtown.  Built in 2000 this home has been well maintained and is in move-in condition.  Why not see for
yourself?!

Virtual tour for 1516 Howell Mill Road, #15, Atlanta, GA 30318

1826 Dupont Ave, Atlanta, GA 30318

Avondale Estates – SOLD

SOLD – 12 Melford Place.  17 Days & 98% of the asking price!  Great home and great deal all around.  My sellers on this house were gems to work with and the buyers are so excited to be moving into the home!  CONGRATULATIONS to ALL!

Market Update on Economy

Pending home sales for the month of March 2010 increased 5.3% from the previous month to 102.9.  The March 2010 is 21.1% higher than March 2009 which was 85.0.  The data is provided by the National Realtors Association and is for homes under contract – not closed.

Definitely the increase is in part to the end of the buyer tax credit (must be under contract by April 30, 2010 and closed by end of June 2010).   According to Lawrence Yun, the NAR’s chief economist, “Clearly the home buyer tax credit has helped stabilized the market.  In the months immediately following the expiration of the tax credit, we expect measurably lower sales.  Later in the second half of the year and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see ome values stablizing.”

From my persepective – yes – we will probably see a slow down in under contracts and sales after April 30th but many Atlanta buyers are out there.   They want to buy even if they didn’t get the tax credit.   Home prices seem to be stabilizing in areas (still early but the numbers are showing some improvements), and loans are becoming readily available in the jumbo market (loans over $417,000) as banks’ begin to show healthy balance sheets.  Buyers want great deals and sellers are understanding this and working to price their homes right for the current market.  I am talking to buyers who still want to buy!

In Metro Atlanta – we are starting to see a slight reduction in the unemployment rate which is a lagging indicator of the economy.  The unemployment rate will follow other improvements in the economy – such as the increase in the pending sales numbers.   The good news is that March 2010 the unemployment rate dropped for the Metro Altanta area.

United Way’s Shoebox Project

Renew Energize Donate = RED.  RED Day is May 13, 2010.  Keller Williams’ office all across the country will take the day and give back to the community.    My office is participating in the United Way’s Shoebox Project which collects shoeboxes (hopefully decorated) filled with travel size toiletries for homeless women & kids.   On the 13th – we will meet at our office and fill the shoeboxes and then deliver to the United Way.

I was so excited & passionate about this project that I am collecting donations from NOW until the 12th of May.  Need Shoeboxes (both decorated & not decorated), travel size toiletries & items for kids (list below) or money which will be used to buy toiletries.   You may leave on my porch or contact me for an easy pick up/delivery options.  Metro Atlanta’s United Way’s goal is 20,000 shoe boxes! 

• Shoeboxes – must be able to be opened/inspected by United Way
• Shoeboxes – have some fun and decorate – no worries if you don’t have time!
• Toiletries – travel size including:deodorant ~ travel size soaps ~ toothbrush & toothpaste ~ travel size lotions ~ hair comb/brush ~ sun protector ~ lip balm ~ adhesive bandages ~ hand towels/baby wipes ~ antibiotic ointments ~ warm socks ~ tampons ~ panty liners (must be individually wrapped) ~ travel size water bottles ~ rain poncho ~ resealable zipper storage bags ~ prepaid phone cards ~ dental floss ~ NON-ALCOHOLIC mouth wash ~ travel size hand sanitizer
• Items for Kids:coloring books ~ crayons/pencils ~ pencil sharpeners ~ barrettes ~ elastic bands ~ children’s toothbrushes ~ toys (travel size) ~ children’s sox ~ small books
• NOT SUITABLE:  Medicines ~ candy ~ sewing kits ~ used or opened items ~ no sharp objects or razor blades (unattended children may have access to the boxes & want to keep safe).

If you want to participate but don’t have shoeboxes or toiletries – can take a check and do shopping for you!  Target & most drugstores – have great $1 items that are PERFECT for the boxes!

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