I’ve been reviewing my 2009 posts and the Georgia Home Closing Cost Estimator was one of the most popular. Therefore, I’ve updated the spreadsheet and reposted it below. When using the spreadsheet, feel free to make any changes, although the green numbers are the ones you’ll most likely change. If you make a mistake, just hit “refresh” on your browser and the spreadsheet will reset. Read More→
Earlier this year I blogged about an economic stimulus package called the American Recovery Reinvestment Act (ARRA) of 2009. One aspect of this stimulus package is that it has allowed qualified, first time home buyers and/or qualified home buyers (who have not owned a home in 3+ years) to receive up to an $8,000 tax credit. New home buyers must purchase a home between February 1, 2009 and November 30, 2009. Read More→
I’ve written about short sales fairly extensively on this blog and have actually dealt with short sales and foreclosures more than a lot of my colleagues in Buckhead, Sandy Springs and Dunwoody. I have worked with clients in Buckhead and Sandy Springs who have tried to buy pre-forecosure and REO properties. I’ve seen some very good deals on Buckhead luxury properties.
Although I’ve had some experience with short sales, the whole concept is still a fairly recent phenomenon that requires any Atlanta agent to continually search for more information. I found a great article by the NAR outlining the basics of short sales. Here is an excerpt:
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Loan modification is one of the most effective ways to stay current on your mortgage if you’re not able to make your monthly payments. It can be defined as a restructured payment agreement between you and your mortgage lender. US President Barack Obama has introduced mortgage modification plan that can help the borrowers to stay current on their mortgage and avoid foreclosure.
5 key features of Obama’s loan modification plan are described below.
This loan modification plan is expected to reduce the number of foreclosures for primary residences. However, time can only prove whether or not Obama’s mortgage modification plan is effective to avoid foreclosure as expected.
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week. Meanwhile, the 15-year fixed mortgage rate dipped to 4.5 percent.
The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed.
Source: Investor’s Business Daily (05/22/09)
When I first read that the new Terminus condos in Buckhead were offering buyer incentives, I almost skipped the article. The idea of reading about another condo complex offering $5,000 in upgrades seemed redundant to me. Since I live two blocks from the Buckhead buildings and have always been impressed with Cousins Properties, I decided to read the article.
What they have decided to offer, for their upscale Buckhead condos, is unprecedented in the Atlanta condo market.
Cousins is responsible for some of Atlanta’s top condominium projects and commercial buildings. Obviously Cousins is confident in the future of Terminus as they are taking on a great deal of risk with these incentives. If you would like to hear more about their incentives or want to see some of the units at Terminus, please call me.
It’s amazing what a really bad idea phasing-out the mortgage interest deduction is in light of the current real estate market. It seems as if the current administration is a bit contradictory when trying to stabilize the housing market and pull the rug out from the mortgage industry at the same time. If this idea is implemented, it will have a negative effect on the Buckhead real estate market. The NAR had some great insights into what a bad idea the phase-out of the mortgage deduction is.
“Though the added tax burden is only for the top income households, the unintended impact is lower home values for most homeowners. If prices for top end houses decline, then the price at the next rung of the housing market also needs to fall to attract buyers, and so forth.”
“California and Florida will be the top two states to take a hit from the changes in mortgage interest deduction. Stay tuned for the final impact results sometime next week.”
The article focused on California and Florida as the top states that will take a hit from this awful proposal, assumedly because there are a lot of expensive properties in these states. If the focus was on communities that would take a hit from the proposal, Buckhead would be at the top of the list. It’s time to call your elected officials, John Lewis represents Buckhead, and tell them that trying to torpedo the Buckhead real estate market won’t do the country any good.
According to a survey by the Mortgage Bankers Association, one in eight Georgia mortgage holders were in pre-foreclosure in the fourth quarter of 2008. While most of the foreclosures are happening on the south side of Atlanta, there are still some great deals in Buckhead and north Atlanta.
You can get limited access to a website that I subscribe to through the Atlanta Journal Constitution. It’s called EquityDepot, and it provides pre-foreclosure information on Metro Atlanta homes. I’ve written about short sales and pre-foreclosures on my website. The AJC also has a great description of the whole pre-foreclosure / foreclosure process.
Here is the link to the AJC’s foreclosure page.
If you have any questions about the pre-foreclosure, foreclosure auction, or post-foreclosure process, and how you might find a good deal on a home in Buckhead or Metro Atlanta, please call me.
I’m asked by a lot of buyers about closing costs and whether it’s something to ask for in the offer. First, closing costs should not be treated as a magic rebate coupon that gives you an instant discount on the purchase price of the home. If you request closing costs then you’ll pay for them in the purchase price of the home.
Sometimes you have an “expert” friend that reminds you to “make sure you get the closing costs covered.” That friend will also take great joy in telling you, after your binding agreement date, how you missed out on the magic rebate of closing costs. To some extent the closing cost issue becomes a shell game. The sellers are only concerned with the check they receive at closing.
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Here is a very rudimentary spreadsheet I developed for calculating the buyer’s closing costs. I cannot stress enough that you need to speak with a mortgage professional for a more accurate estimate of closing costs.
When using the spreadsheet, feel free to make any changes, although the green numbers are the ones you’ll most likely change. If you make a mistake, just hit “refresh” on your browser and the spreadsheet will reset.
Again, the costs in the spreadsheet can vary widely. The 1% loan origination fee is a general estimate. Your mortgage company might have some additional fees, or you may choose to pay some points down on your interest rate. You will need to finalize your closing cost estimate with a mortgage professional.