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Finding The Best Buyer's REALTOR®

2012-01-31T06:24:00.007-06:00

Buying a home may be the largest and most complex financial transaction a person ever undertakes. Home buying is more than just finding a mortgage and picking out a house. The transaction involves offering a price that does not insult the seller. It’s about being fair to both sides. It’s about being sure the house has no uncorrectable defects. Simply stated, it’s about dotting every “i” and crossing every “t.” So how does a buyer do just that?

Given the opportunity, most homebuyers would prefer to find the most qualified real estate professional to help them navigate the complexities of the purchase. So who is the most qualified?

An Accredited Buyer’s Representative stands out in the crowd. The ABR® designation means that REALTOR® has the extra edge when it comes to knowledge and experience in representing the buyer in a real estate transaction.

Professional Requirements – The ABR® designation is only awarded to licensed real estate professionals who complete specialized training that gives them the edge in understanding a buyer’s perspective and protecting and promoting their buyer-clients’ interests. They must pass a written examination. But an understanding of classroom theory is just not enough.

Before earning the ABR® designation, a REALTOR® must also demonstrate proven experience in representing buyers. That means they must close a certain number of transactions. Those experiences give a buyer the assurance that the ABR® has a proven track record of success.

Maintaining the ABR® also means a personal commitment to maintaining their professional edge by staying current on the latest issues and trends in buyer representation. They do this by enrolling in continuing education that exceeds state licensing requirements. These courses all focus on issues of concern to a real estate buyer.

Served Not Sold – Buyers that work with an ABR® find themselves served rather than sold. Buyer interests become the interests of your ABR® REALTOR®. No real estate transaction is ever free of unexpected problems or unforeseen challenges. An ABR® uses experience to either eliminate those problems or reduce the stress associated with those challenges.

Buyer Expectations – Below are just some of the services that an ABR® provides to buyer-clients.

• Understands specific buyer needs and wants to locate appropriate properties.

• Assist buyers in determining how much house is within available within financial limitations (mortgage pre-approval).

• Accompany the buyer-client on all property previews.

• Advise buyer-clients in formulating a reasonable purchase offer.

• Develop and outline the parameters for the negotiating strategy.

• Provide a list of qualified vendors to complete the transaction. These include the home inspector, closing attorney, mortgage lender and so forth. A vendor could also include other key businesses based on unique transaction specific needs.

• Keep track of every detail throughout the transaction—to closing and beyond. This insures the transaction closes on schedule and completion of post-closing actions.

Not All Buyer’s Representatives Are Equal – Only a buyer’s rep who has earned the Accredited Buyer’s Representative designation made the extra effort to raise the bar with additional training and experience. It is a violation of the REALTOR® Code of Ethics to claim a designation not legally awarded or certified.

A homebuyer can feel confident of receiving the highest level of buyer-representation services, when working with a REALTOR® that possesses the ABR® certification.

The Real Estate Buyer’s Agent Council (REBAC), a wholly-owned subsidiary of the National Association of REALTORS® (NAR) awards the ABR® designation. REBAC can help any buyer locate an ABR®

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. He is also a member of the National Association of Realtors®. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Past, Present and Future Of Mortgage Interest Rates

2012-01-30T06:24:00.002-06:00

Last week the Federal Reserve announced their intention to maintain affordable mortgage interest rates for the next few years. Let’s make a quick comparison of interest rates today versus a year or more ago. We can also peek into the future with a certain amount of assurance.

Yesterday – A year ago, most lenders offered a 30-year fixed rate mortgage at 4.75 percent. That means if a person purchased a $100,000 home in the winter of 2011, their monthly mortgage payment is about $500. The borrower needs to add taxes and insurance. Let’s just estimate taxes and insurance about $125 a month. To live in a home rather than an apartment, all the borrower had to do was exchange a $625 check ($500 + $125) each month for that privilege.

Two years ago, those same lenders offered a 30-year fixed rate mortgage at 5.5 percent. A homebuyer that purchased a home then now pays about $550 per month for that property. Three years ago, in 2009, the predominant mortgage interest rate was about 6 percent. That same $100,000 home cost about $575 in principle and interest.

Today – Anyone wanting a government sponsored mortgage such as Federal Housing Administration, Veterans Administration or Rural Development mortgage has some great news. Most lenders offer a 30-year fixed rate mortgage for 3.75 percent. What does that mean? Again, take a house listed at $100,000.

The monthly mortgage payment is under $450 a month. That is $100 less than someone who purchased a home because they wanted a tax credit. The homeowner needs to estimate adding an additional $125 for taxes and insurance. That means writing a check each month for $575 to live in a house rather than an apartment.

Here is another way to look at the value of borrowing money today. On a $100,000 mortgage at 3.75 percent, the borrower repays the $100,000 plus $66,700 in interest. The interest is significantly less than the principle.

Each month a homebuyer repays the mortgage at $575, which includes taxes and insurance. Suppose the homebuyer decided to rent? Rents increase about 3 percent a year, according to a New York Times survey during the summer. In 2042 (30 years from now), that person has a monthly rent of about $1200. Meanwhile the homebuyer just made his last $575 house payment. He lives in it for the rest of his life with only an annual tax and insurance payment.

Tomorrow – No one can predict with any level of certainty the exact percent of a 30-year fixed rate mortgage. Today’s 3.75 rate could go down even further. The question is how much further? Rates could also increase slightly. The Fed did not define a specific meaning for the word “affordable.” The 2010 rate of 5.5 percent is affordable. That is because the interest on a $100,000 loan is about $100,000 over 30 years.

There is one certainty in the future. It’s not pretty either. Starting on April 1, 2012 and continuing for the next 10 years, any homebuyer getting a government sponsored mortgage needs to add $50 a month to the payment. Why? This is a user fee tacked on to all FHA, VA and RD mortgages. Congress passed the legislation in late December. The President signed it December 23^rd. That is how the government funded itself for January and February 2012. Don’t believe it? Ask a lender! Write your Congressman. Waiting means that today’s $575 home will cost $625 each month in the foreseeable future.

The good news is that loans originated prior to that April 1^st implementation date do not have that fee assessed. Think of it as a reward for those ready to act quickly.

Best Time To Buy – Anyone that is thinking about buying a home in the future needs to talk to a mortgage originator now. Start at your bank. Ask about how to get a mortgage. Review an accurate credit report. Know the acceptable income versus debt ratio. Provide the lender all required documents for pre-approval. Then contact your REALTOR® to find the right house in the right location at the right price.

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Columbus, Mississippi In Late January

2012-01-27T06:24:00.002-06:00

The main purpose of Friday’s blog is to highlight weekend events in Columbus, Mississippi. The reason is more than creating awareness. Anyone considering relocating to this area needs to know that the quality of life here is as good or exceeds other communities. So let’s see what makes Columbus special this weekend.

The Center for Creative Entrepreneurship at Mississippi University for Women is hosting the Listening to Small Business Forum Friday morning at the Nissan Auditorium in Parkinson Hall on the corner of 12^th Street and 3^rd Avenue South. Listen to experts and community leaders discuss topics like the 2012 Current Small Business Economy, trends that will impact the future of startups and boosting success of existing business in the Golden Triangle Area. Connect with business resources that can empower a business that employs 500 or fewer people. One of the featured speakers is Congressman Alan Nunnelee.

January is almost over. How are those New Year’s resolutions going? Fitness Factor on the corner of 18^th Avenue and 5^th Street near the US-82 by-pass can lend a hand if those resolutions include losing weight. There are weight management seminars on Friday at noon and Saturday at 10:00 a.m. Take the 24-day Lean Out-Tone Up challenge.

Baptist Center for Cancer Care offers free prostate PSA screenings for men over 40 the last Friday of each month. The Center for Cancer Care is in the northeast corner of the hospital campus on Baptist Blvd and Leigh Drive. The screening ends at 2:00 p.m. The hospital also has a continual need to volunteers. Contact United Way of Lowndes County for specific volunteer opportunities.

The members of the American Legion post in Columbus have their semi-annual blood drive on Saturday starting at 11:00 a.m. The Bloodmobile will be at the Legion Hall at 308 Chubby Drive, just east of US-45 near Bluecutt Road.

Lighthouse Baptist Church at 5030 Highway 182 East has a Children's Rally on Saturday starting at 1:00 p.m. This is for children ages 5-12. The special guest is Allen Nye, the Magic Guy. The children can enjoy a fun filled day of games plus two magic shows.

Registration for the spring soccer ends Saturday. The Columbus-Lowndes Recreational Authority has full information at their office in Propst Park on the corner of Main Street and Martin Luther King near Stokes-Beard Elementary School.

The Strut in Style Fashion and Hair Show is Saturday at 7:00 p.m. in the Rent Auditorium on the corner of 11^th and College Streets on the MUW campus. Doors open an hour before the show begins.

Have a real estate need this weekend? Contact me before noon on Friday to schedule a weekend appointment.

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Andy Kalinowski is a REALTOR® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Seven Tips for Staging Your Home

2012-01-26T06:24:00.002-06:00

Make your home warm and inviting to boost your home’s value and speed up the sale process.

1. Start with a clean slate – Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter – It’s harder for buyers to picture themselves in your home when they’re looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don’t make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface, suggests Barb Schwarz of www.StagedHomes.com in Concord, Pa. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture – When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement – Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point, advises Schwarz. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms – Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene – Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home—such as a chess game in progress—to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.

Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand – Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don’t surround your home’s entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

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G.M. Filisko wrote copyrighted article appeared on House Logic.com and is used with permission. She is an attorney and award-winning writer who occasionally rearranges her furniture to find the best placement—and keep her dog on his toes. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Andy Kalinowski is a REALTOR® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi, and a member of the NATIONAL ASSOCIATION OF REALTORS®. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Something FSBO Buyers And Sellers Should Know

2012-01-25T06:24:00.007-06:00

Drive through almost any modern subdivision of 50 or more houses and expect to see a common characteristic. Look for at least one “for sale by owner” sign in a yard. Why would a buyer want to forego with advice and assistance of a REALTOR®? Why would a seller want less than professional marketing for likely their single largest capital asset? Let’s examine some reasons.

Inside Sale – The National Association of Realtors® annual survey of homebuyers and sellers found that in 2011 “For Sale By Owner” sales continued to decline. Less than 20 percent of all real estate transactions did not involve a REALTOR®.

One of the most prevalent reasons for a successful sale without REALTOR® involvement is because the buyer and the seller had a personal relationship that pre-existed before the transaction. Slightly more than one of four “For Sale By Owner” transactions came about because of this very reason.

It is not uncommon for a parent to sell real estate to a child rather than just give it to them. The same is also true from other types of relationships like with grandparents, uncles and aunts and so forth.

There are other types of sales in the “closed” market. Perhaps a friend or a neighbor brings knows about someone needing a house. The friend might be someone at work, in a club, church or other type of group setting. The common trait is that the buyer and seller get together without the benefit of sign appearing in the front yard because some brought them together.

Direct Buyer Contact – It is not uncommon for someone that wants to buy a house they like to make direct contact with a property owner. Think about the reaction a property owner has when someone knocks on their door and says, “You have such a lovely home. I would love to buy it and live here. Would you be interested in selling it to me?” That same NAR survey revealed such a scenario happened about 15 percent of the time.

Reasons Do Not Equal Success – The two reasons above prove that people can buy and sell real estate without a real estate agent. There is something between the lines, however. Let’s reexamine the facts that the survey revealed.

Fewer than one in five real estate sales did not involve a REALTOR®. Of those, perhaps a third had success because the buyer and seller knew each other or a buyer made personal contact and transformed the property owner into a seller. That leaves about two-thirds of 20 percent as selling a house in the FSBO market. That is less than a 15 percent overall success rate. So why does a property owner want to omit a REALTOR® from the transaction?

No Commission – Nearly two of every five sellers believe they can reduce expenses by eliminating the real estate agent from the transaction. Here is a fact. Real estate agents are entitled to earn a living. They do that by adding value to a transaction. Some REALTORS® cannot explain that to a seller. Others explain how they add value, but the message falls on deaf ears. Some of these sellers actually saw the transaction through to the closing table. Most did not.

Small Sale – Most FSBO sales occur among buyers with an income below the median area income because they want to purchase lower valued properties and also need creative financing, such as owner-financing or rent to own. A REALTOR® normally does not want involvement unless the closing occurs within 90 days. Remember a REALTOR® is entitled to make a living.

One Time Showing – Some sellers do allow and even encourage a REALTOR® to show their buyer client a house. A seller doing that must remember two important facts. The REALTOR® has no obligation other than honesty and fair-dealing to the seller. The REALTOR® has fiduciary responsibilities to clients. That means the seller pays the REALTOR® to negotiate against that seller’s best interest. That is the REALTOR® negotiates in behalf of the buyer-client’s best interest. But the REALTOR® also has something very valuable – a pre-approved buyer, which makes negotiating a bit one-sided.

Bottom Line – If selling a house is important, go with odds and hire a REALTOR®. If the house is a prized possession, treat it as one, by hiring a professional to handle the marketing and negotiating. Contact your REALTOR® to discuss a marketing plan and overall strategy.

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Finding The Perfect Mortgage Lender

2012-01-24T06:24:00.004-06:00

Obtaining a mortgage to buy a home is more than a credit check. It’s more than producing documents to validate income and debt. There is a bit more to the process than finding a reputable lender. This is where interviewing lenders becomes very important.

Differentiation – A lender faces certain limitations when making government backed loans. It is when a lender has the ability to retain the debt that options become available. As an example, there is a lender in Columbus, Mississippi that can write a mortgage for 100 percent of the sale price and also waive the private mortgage insurance against default. This lender makes up those fees by charging a slightly higher interest rate. That is a major reason to comparison shop.

Time Is Money – No one borrows money for free. It costs. The longer the payback period, the more it costs. A great way to reduce the cost of borrowing money is to reduce the time it takes to pay back the loan. Let’s provide a specific example.

Assume a lender offers a 4 percent mortgage for a 30-year fixed rate mortgage. The borrower needs $100,000. The borrower writes a $477.42 check each month for the next 360 months (30 years). That totals $171,869.51. It cost the borrower nearly $72,000 in interest.

Let’s cut the payback period in half. The monthly payment increases to $739.69 each month for the next 180 months (15 years). That totals $133,143.83. Think the borrower saves nearly $40,000? Wrong! The correct answer is even more. That is because the lender rewards the shorter payback period with an even lower interest rate. The actual answer may be closer to $45,000 because the monthly payment is about $25 less.

Explore repayment terms and options with the lender.

Explain The Unusual – The main reason that lenders review financial records is to establish income and debt patterns. Events that cause a large deposit or withdrawal might require some additional explanation. Lenders discovered that failing to get these explanations helped cause today’s mortgage crisis. They lent money to people that did not have financial maturity. Answer all questions truthfully and the results normally come out acceptable.

Did We Say Shop Around? – There are some people that take a “no” answer well. Don’t be one of them. If buying a home is very important and one lender does not, cannot, or will not write a pre-approval letter, perhaps another one will.

That is why it is important to shop around. Compare lenders. Continue to seek mortgage pre-approval until someone writes that pre-approval letter. In the meantime, do the things that improve credit scores. Continue to pay bills on time. Reduce current debt. Do not accept any new debt. Remain employed. Increase income. Remain positive.

Get Professional Help – Different people have different backgrounds. For some fiscal responsibility is easy. For others it is a tough struggle. People that struggle with losing weight hire a professional trainer. Doesn’t it make sense to seek a professional that offers encouragement and solid advice on financial matters, if that becomes necessary. Seeking help does not mean adding another bill to the stack either. There are many agencies that offer personal accountability for actions coupled with educating a person about financial matters.

Know The Right Price – No lender will write a mortgage unless a licensed appraiser personally visits the property and makes an independent evaluation. Most appraisers cannot have contact with either the buyer or the seller. Personal contact could give the appearance of a tainted answer in favor of one party or the other. The appraiser determines the fair market value based on a number of factors including price of other sales in the recent past of similar properties.

The lender wants the assurance that the house has a value equal to or exceeding the sale price. Most real estate contracts include language that calls off the transaction without a financial penalty to either side if the house appraises for less than the sale price.

Getting The Best Price – Depending on perspective, the best price has two different answers. The seller’s “best” price is high. The buyer’s “best” price is low. Many homebuyers ponder a simple question – what separates a low-ball offer from an insulting offer? The answer is simple.

Get your REALTOR® involved. Have your REALTOR® prepare a comparative market analysis that clearly shows recent sales, current supply versus demand and transactions that did not close. Getting accurate information for one of life’s largest financial transactions is extremely important.

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Start The Home Buying Process On The Right Foot

2012-01-23T06:24:00.005-06:00

Interested in buying a home but don’t know where to start? This is not uncommon. There is one simple answer – and it might surprise most. The search for a new home does not begin with a REALTOR®. Rather it begins with a mortgage lender. Let’s discuss some of the things a homebuyer needs to discuss with a mortgage lender.

Know the Score – One of the first things a mortgage lenders needs to know is the credit score of the borrower. The higher the score the easier it is to borrow money. A credit score is really the report card on how a specific person paid bills in the past. Missing a credit card payment, being late to pay a cell phone bill, giving the landlord the rent a few days late or neglecting to make a car payment all detract from a credit score. Establish a pattern to pay bills on a certain day of the month and stick with it. That one strategy alone can give anyone a favorable credit score.

Get The Records – In addition to a credit score, a lender wants to see the 2010 and 2011 federal and state income tax returns. These document income over the past few years. Gather the last three months of bank statements that show both deposits and withdrawals from checking and savings. Provide the most recent statements on all types of loans that show the unpaid balance and the amount of remaining credit. Having these handy is a great start to shortening the pre-approval process.

Ball Park Estimating – Most lenders use a 29/41 ratio for mortgage pre-approval. They want to keep the current recurring debt to within 29 percent of the monthly income. As an example, if monthly income is $1000, then anyone with $290 or fewer dollars in recurring debt can probably expect pre-approval. Lenders also use another ratio. They want the total recurring debt plus the house payment to not exceed 41 percent of the household income. In this example, if recurring debt is $290, then the house payment cannot exceed $120. A house payment of $120 plus recurring debt of $290 is $410 of monthly bills in a $1000 a month income household. That is the reason for the emphasis on reducing current debt. Assume that in this house the recurring debt was just $100. That means the mortgage payment could be as high as $310.

Maximum versus Affordability Scale – A lender tells a borrower the financial limit on a home purchase. If the lender will write a mortgage for a $250,000 home, that does not mean the borrower has to find a $250,000 home. It just means he cannot exceed that amount. He can limit the purchase to $100,000. Many buyers do just that. That makes great financial sense.

Comparison Shop – While multiple lenders may quote an identical 30-year fixed-rate mortgage interest rate, the wise borrower takes it a step further. They find subtle difference in the fees that lenders charge for the transaction. Sometimes these difference can add (or save) thousands of dollars. To help borrowers make an “apples to apples” comparison, the federal government now mandates that home lenders provide a “Good Faith Estimate” that is normally within just a few pennies of the actual payment.

Don’t Change A Thing – Mortgage pre-approval is not mortgage approval. The main difference is that the pre-approval considers the financial past and present without regard to a specific address. Lenders reserve the approval process until they are ready to approve the loan. Approval normally comes hours before the closing. The closing ends the transaction with the legal transfer of ownership. Once the buyer legally owns the property, he pledges the property as collateral to secure the loan. To make sure nothing ruins the transaction, continue to pay bills on time. Don’t change jobs. Don’t take on any new debt.

On The Clock – Mortgage pre-approval has a time limit. It varies among lenders. Don’t delay in finding an acceptable house. Ask about the validity period. Then take action. Contact your REALTOR® to find the best properties in the best locations that bring the best value within that time frame.

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Planning For The Memories

2012-01-20T06:24:00.004-06:00

This is a real estate blog about the Columbus, Mississippi area. One day each week we put traditional real estate on the back burner in favor of community events. Why? Because when someone buys a house, they also buy into a community. They want to live in a place with a great quality of life. Columbus has that. Let’s see what is happening this weekend.

Kelsey Collins, a brilliant young songstress entertains patrons of Café Aromas at 404 Main Street Friday starting at 8:00 p.m. While enjoying her with an incredibly soulful voice also enjoy the Café’s fine selection of beverages.

Full Gospel Ministries at 1504 19th St. North has special program Friday evening. Dr. Mary Crum from Life Center Church in Dunwoody, GA is the special guest for a Night of Prophesy. The service begins at 7:00 p.m.

Young girls dream of a June wedding. The dream of a receiving an engagement ring on Christmas Eve. Being a June Bride takes some planning. Helping with the planning is the annual Bridal Showcase this weekend at the Trotter Convention Center’s upper level. Vendors representing everything needed for that big day gather under one roof.

Need a wedding dress, or dresses for the wedding party? How about formal wear for the groom and the men in the wedding party? Those are some of the experts available to provide advice. But it does not stop there. Compare the services of caterers, florists, photographers, travel agents, printers, hotels, salons and other services needed for that special day.

Doors open at 9:00 a.m. and again at 1:00 p.m. with the fashion shows starting one hour later. Register for door prizes at each vendor. To ease registration, pre-print some labels that include your name, address, phone number and e-mail address. That way the merchant has that information and can follow up on an individual basis. Also wear comfortable shoes and don’t forget to take notes.

The Trotter Convention Center is on 5^th Street North just north of Main and very near the Lowndes County Courthouse.

Life Choices hosts their annual pro-life candlelight rally and prayer vigil in front of the courthouse at 4:30 p.m. Sunday as the main local event in the National Sanctity of Human Life Sunday. This event remembers the Supreme Court Roe versus Wade decision 39 years ago.

Who enjoys roller skating? Want to take that enjoyment to the next level? Visit Skate Zone on Lehmberg Road in East Columbus Sunday at 6:30 p.m. The Mississippi Brawlstars need new players, referees and volunteers for the upcoming Roller Derby season. No experience? No problem! Learn about Roller Derby as a way for adults (18 and over) to turn recreation into a true fitness experience.

Let’s fast forward one week. That is because next Friday, January 27^th starting at 8:30 a.m. is a very special program for anyone in business or considering starting a business. The event is at the Nissan Auditorium on the corner of 3^rd Avenue and 12^th Street South on the MUW campus.

Mississippi University for Women, in conjunction with the Columbus-Lowndes Development LINK and their sister organizations in Starkville and West Point have a morning seminar geared for entrepreneurs. Listen to experts and community leaders discuss topics like the 2012 Current Small Business Economy, trends that will impact the future of startups and boosting success of existing business in the Golden Triangle Area. Connect with business resources that can empower a business. One of the featured speakers is Congressman Alan Nunnelee.

Have a real estate need this weekend? Contact me before noon on Friday to schedule a weekend appointment.

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How to Use Comparable Sales to Price Your Home

2012-01-19T06:24:00.004-06:00

Before you put your home up for sale, use the right comparable sales to find the perfect price. Knowing how much homes similar to yours, called comparable sales (or in real estate lingo, comps), sold for gives you the best idea of the current estimated value of your home. The trick is finding sales that closely match yours.

What makes a good comparable sale? Your best comparable sale is the same model as your house in the same subdivision—and it closed escrow last week. If you can’t find that, here are other factors that count:

Location – The closer to your house the better, but don’t just use any comparable sale within a mile radius. A good comparable sale is a house in your neighborhood, your subdivision, on the same type of street as your house, and in your school district.

Home type – Try to find comparable sales that are like your home in style, construction material, square footage, number of bedrooms and baths, basement (having one and whether it’s finished), finishes, and yard size.

Amenities and upgrades – Is the kitchen new? Does the comparable sale house have full A/C? Is there crown molding, a deck, or a pool? Does your community have the same amenities (pool, workout room, walking trails, etc.) and homeowners association fees?

Date of sale – You may want to use a comparable sale from two years ago when the market was high, but that won’t fly. Most buyers use government-guaranteed mortgages, and those lending programs say comparable sales can be no older than 90 days.

Sales sweeteners – Did the comparable-sale sellers give the buyers downpayment assistance, closing costs, or a free television? You have to reduce the value of any comparable sale to account for any deal sweeteners.

Agents can help adjust price based on insider insights – Even if you live in a subdivision, your home will always be different from your neighbors'. Evaluating those differences—like the fact that your home has one more bedroom than the comparables or a basement office—is one of the ways real estate agents add value.

An active agent has been inside a lot of homes in your neighborhood and knows all sorts of details about comparable sales. She has read the comments the selling agent put into the MLS, seen the ugly wallpaper, and heard what other REALTORS®, lenders, closing agents, and appraisers said about the comparable sale.

More ways to pick a home listing price – If you’re still having trouble picking out a listing price for your home, look at the current competition. Ask your real estate agent to be honest about your home and the other homes on the market (and then listen to her without taking the criticism personally).

Next, put your comparable sales into two piles: more expensive and less expensive. What makes your home more valuable than the cheaper comparable sales and less valuable than the pricier comparable sales?

Are foreclosures and short sales comparables? – If one or more of your comparable sales was a foreclosed home or a short sale (a home that sold for less money than the owners owed on the mortgage), ask your real estate agent how to treat those comps.

A foreclosed home is usually in poor condition because owners who can’t pay their mortgage can’t afford to pay for upkeep. Your home is in great shape, so the foreclosure should be priced lower than your home.

Short sales are typically in good condition, although they are still distressed sales. The owners usually have to sell because they’re divorcing, or their employer is moving them to Kansas.

How much short sales are discounted from their market value varies among local markets. The average short-sale home in Omaha in recent years was discounted by 8.5%, according to a University of Nebraska at Omaha study. In suburban Washington, D.C., sellers typically discount short-sale homes by 3% to 5% to get them quickly sold, real estate agents report. In other markets, sellers price short sales the same as other homes in the neighborhood.

So you have to rely on your REALTOR’s® knowledge of the local market to use a short sale as a comparable sale.

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Carl Vogel wrote copyrighted article appeared on House Logic.com and is used with permission. He is, a freelance writer and former editor of The Neighborhood Works magazine, lives in a home in Chicago that is not typical of those nearby, so he appreciates a savvy comp.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Buying Foreclosured Properties

2012-01-18T06:24:00.003-06:00

Quite often potential home buyers ask about purchasing foreclosed properties. It is possible to save some money doing that. Consider all sides of the equation, including supply and demand. Let’s discuss.

A Bargain Might Not Be A Bargain – There are some foreclosures that can save a homebuyer a lot of money. Others might be one of the worst financial mistakes they make. Know the difference between a bargain and what seems to be one. Let’s provide a generic example.

Seldom is a foreclosed house in “move in ready” condition. All seemingly need repair. Assume a person has the technical ability, the time and the financial resources to fix or rehabilitate a house. Should he buy it? The answer depends.

Take a critical look at the property “as is”, the cost of repairing, and the estimated value when restored. Let’s say a foreclosed house is in a neighborhood where the property values are $200,000. The purchase price is $150,000. The house needs $25,000 in repairs. That sounds like a good deal. This person will own a $175,000 house in a $200,000 neighborhood.

Conversely, another house in the same neighborhood sells in foreclosure for $175,000 but needs $50,000 in repairs. That’s a purchase mistake. The owner has a $225,000 house in a $200,000 neighborhood. Carefully evaluate the purchase price and the repair costs.

An alternative might be to purchase a house that is not in foreclosure. Again – same neighborhood. In this house, the owner must sell a “move-in ready” house that is not in foreclosure. Seeing the competition, he sells it for $195,000. Maybe that is not quite the bargain of the first example, but it is still a bargain.

Count The Cost – The purchase price is not the only factor to consider. Factor in the restoration cost. That is the only way to get a true “apples to apples” comparison. Ask a lender about a rehabilitation or home improvement mortgage. Do not put improvements on a revolving credit card. The interest rate is too high. High interest negates any perceived savings.

Fewer Foreclosures – Nationally the number of foreclosures hit a 4-year low in December, according to RealtyTrac, a foreclosure data company. The reason for the dip is because filings take longer now in an effort to insure there is no violation of the borrower’s right to due process. The foreclosure processing time increased during 2011 by 25 percent. So what does that have to do with anything?

Good News Mississippi – According to Realty Trac, during 2011, there were fewer than 3,200 foreclosures in Mississippi. That is one in every 400 homes. Only South Dakota, West Virginia, Vermont and North Dakota had a lower foreclosure rate. The Mississippi foreclosure rate fell by 40 percent in 2011 versus the 2010 foreclosures in the state. As a point of comparison, in neighboring Alabama, the foreclosure rate was one in every 132 homes with more than 16,000 foreclosures in 2011.

Supply and Demand – There is a smaller supply of foreclosed houses on the market. That means if there is a greater demand to purchase foreclosed properties, the prices go up to winnow out the less motivated buyers.

That does not mean the end of foreclosed properties. It only means that if the current trend continues, there will be fewer foreclosures. There are still a number of properties eligible for short sale until the legal process runs its course.

What Is Good For Some Is Bad For Others – Every buyer wants a deal. No buyer wants to pay more than the fair market value for a house. The problem is if foreclosed or short sale properties dominate the market, what does that do for the honest, hard-working property owners that paid their mortgages but now must sell their home? This is a very real concern expressed by real estate leaders to politicians.

The result is incentives to sell or rent foreclosures and reduce the inventory in the free market. Expect the foreclosure problem to continue being a factor in the housing recovery in the foreseeable future. But also expect to see some volatility in the foreclosure market until the legal process and eligible properties stabilize.

What To Do – On any real estate decision, it is best to seek professional guidance and advice. That is the role of your REALTOR®.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Getting Down Payment Or Closing Cost Money

2012-01-17T06:24:00.005-06:00

One of the main decision points for a mortgage lender to write a pre-approval letter for a prospective buyer is the amount of savings. This is a sure sign for a lender that the borrower is or is not fiscally responsible and mature. Some borrowers try to circumvent a regular pattern of savings by making a single large deposit. Let’s examine this strategy.

Once again, it’s not about finding a mortgage requiring no down payment. It’s not about having enough to pay for closing costs. It is about living a life style that shows a lender the borrower knows to save for a rainy day. Homeownership requires having some disposable cash to address unexpected emergencies. A lender wants to be sure the borrower can do that.

Wise One-Time Deposits – There are some homebuyers that have a significant amount of money saved. They just need to transfer funds from a retirement or other type of asset into checking account for the down payment or closing costs. That is the whole purpose in saving. Keeping financial assets in reserve for achieving a major goal or to meet an unexpected emergency is the only real reason to save.

Gifts May Be A Problem – Asking a parent, friend or employer for a one-time gift to make a down payment or pay for closing costs is very legal. Just be aware of a couple of issues associated with a gift.

Both sides need to fully understand the tax implications. Before making a withdrawal, consult with an accountant. Know the tax rules. Get a professional opinion based on a specific set of circumstances. If a certified public accountant indicates the gift is free of special taxation (by the benefactor or recipient), then proceed. Otherwise, it is best to resort to “Plan B.”

Sometimes a buyer may need just a small gift to achieve a set goal. As an example, if a borrower needs $3,500 for a down payment and has $3,000 in savings, then a $500 gift might not become a pre-approval negative factor. But be certain of the tax laws by getting a professional opinion.

Gifts May Not Be A Problem – It is possible that a borrower could make a large one-time financial deposit that the lender understands. One example is a collection of small gifts that honor a special occasion like a wedding or child birth. A wedding or child birth are both very logical reasons to buy a home. Some employers provide assistance to faithful employees to purchase a home. All of that is very legal and very ethical.

Prove It – One of the mortgage pre-approval documents is a copy of recent bank statements. These show both deposits and withdrawals. Lenders look to do more than just establish spending patterns. They want to see income and saving patterns as well.

If there is a large one-time deposit, expect the lender to request additional documentation of the origin of this money. Lenders got into a lot of financial difficulty for making bad loans a few years ago. Don’t blame them for correcting a mistake in their lending practices.

Normally a transfer of personal funds from one account to another requires no special documentation. That is because the lender already has a copy of the statement from that other account.

If the source of a large one-time deposit is a parental gift, expect the lender to question the parent about the rationale for the gift and the original source of that gift. If the source is a collection of smaller gifts to honor a special occasion, make a copy of the checks prior to the deposit. Document the special event with a marriage or birth certificate.

An employer’s gift might necessitate an explanation of the company’s business policy and how this particular employee meets that standard. If the employer loaned the employee the money, the mortgage lender might have to compute the income versus debt ratio again.

Bottom Line – When a large one-time deposit appears on a bank statement, it raises the curiosity of a lender. Keep in mind the lender wants to make a good mortgage. That is why they must question the origin of one-time deposits.

Getting mortgage pre-approval is a tedious job. Start the job by making savings a regular habit. Don’t be afraid to ask help. But be prepared to explain the source of that help.

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Saving For That First Home

2012-01-16T06:24:00.003-06:00

One of the factors that have a very positive influence mortgage pre-approval is the amount of savings the prospective buyer has in reserve. Most lenders realize that owning a home means the homeowner must have some money for unexpected emergencies. But saving money is not easy. It’s hard. Let’s examine some methods to help a prospective homebuyer gather a nest egg for that initial home purchase.

100 Percent Financing Is Not The Issue – Yes, there are a number of mortgage options that allow a buyer to purchase a home with no money down. These include using a Veterans Administration or a Rural Development mortgage. Some Federal Housing Administration loans require only a 3.5 percent down payment. The Mississippi Home Corporation has a Down Payment Assistance program to dwindle down the 3.5 percent to half a percent.

That is not the issue. The issue is having the financial resources available to meet unexpected expenses associated with ownership. What happens if the washing machine hose bursts while the occupant is away on a weekend trip? Who pays the cleanup costs? What about if the air conditioning compressor goes out on the 4^th of July? How does the owner cool his home? He must plan ahead. That is why having a small savings account is a must before a lender pre-approves a mortgage.

Review The Checkbook – Before starting any savings plan get a good understanding on the present. Do that with a thorough review of the check book. Know and understand when and where money comes into the household and when and where it leaves.

Control Expenses – Can a family reduce driving expenses by 10 percent? Is it possible to eliminate one restaurant visit a week in favor of eating at home? It could be as simple as taking a shorter shower to reduce water and heating expenses. Find ways to eliminate certain expenses and put the reduced expenses in a savings account.

Compare the cost of preparing a bag lunch versus eating lunch at a fast food restaurant. Would it be more cost effective to buy a larger quantity of a non-perishable item (like bathroom paper) once a month versus buying the same product in a smaller quantity every week? What is wrong with wearing a non-branded pair of jeans or tennis shoes? Here is a great way to save $5-$10 a week. Instead of stopping at the convenience store for that morning cup of coffee on the way to work, buy a travel coffee mug. Make the coffee at home.

Increase Income – Reducing expenses is a great start to saving. Take it a step further. Find another source of income and save it. There are some ways.

Take a second job but deposit those paychecks in a savings account. That is one of the fastest ways to save money. If a lender sees income being deposited regularly into savings, that is a great sign of fiscal responsibility and maturity. The potential borrower shows he is thinking ahead for a rainy day. Most lenders desire a borrower to have about six months of income disposable in the event of an unforeseen emergency.

Use a hobby or special skill to generate income. These include yard work, auto repair, carpentry, computer savvy, babysitting, cooking, bookkeeping, house cleaning or a comparable skill that someone needs and is willing to pay.

Change Lifestyle – Instead of going to a movie, rent one or just watch the TV. Think about day trips rather than staying in a hotel. If the trip must be an overnight one, consider finding lodging at a place with fewer amenities. Consider watching a ball game on television rather than personally attending it. Would walking or jogging in a park be more cost effective visiting a health club for the same activity?

Reward Yourself – Splurge within reason when reaching certain intermediate goals. As an example, if a personal goal is to save $50 a week, and that week the actual savings was $75 – reward yourself. Maybe that is the night to enjoy a restaurant meal or a theater movie. Saving money is tough work. Make it fun.

Monitor Progress – Don’t save money aimlessly. Set a target. Review the progress regularly. Make necessary adjustments. Remember that establishing a savings account is not the real goal. Home ownership is the real goal. Keep that in mind.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. He is also a member of the National Association of Realtors. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

A Weekend To Remember 365

2012-01-13T06:24:00.003-06:00

A regular weekly feature is promoting community events. It’s important for people considering moving to the area to know about what makes Columbus, Mississippi a great place to live, work, raise a family and call it home. Let’s see what is on tap this weekend.

Like many communities across the nation, Columbus pauses this weekend to honor the legacy of Dr. Martin Luther King, Jr. The five-day “I Have A Dream 365” event began last night at the Rosenzweig Arts Center. Tonight on the upper level of the Trotter Convention Center on 5^th Street North stop by for the Unity Step Show with performances from McKenzie Ellis, Lil Chris, BET Out of State Boyz and other high school and college steppers. Their performance, dedicated to the Civil Rights Era, begins at 7:30.

Perhaps the one event that Dr. King himself would appreciate is Saturday starting at 8:00 a.m. on the convention center’s lower level on 2^nd Avenue North. That is the meeting time for volunteers to assemble and share breakfast before embarking on a day of community service throughout the city. Projects include home repair, yard work for the elderly, cleanup of Friendship Cemetery, working on service projects for the Salvation Army, and Palmer Home for Children. Be sure to contact the United Way of Lowndes County in advance to take part in this very worthwhile morning. They want to be sure you have plenty to eat.

The final three events of the “I Have A Dream 365” all take place on the upper level of the Trotter Convention Center. Enjoy the Laughter for the Soul comedy show Saturday at 8:00 p.m. At 5:30 p.m. Sunday it’s the Gospel Spotlight Spiritual Evening that remembers the contributions of the past by uplifting voice. The event culminates with the MLK Breakfast that also includes the 50^th Anniversary Tribute to James Meredith, who became the first African-American to enroll at the University of Mississippi. Otis Moss, III is the keynote speaker for breakfast.

Cafe Aromas at 404 Main Street has “An Evening of Spoken Word and Songs” beginning at 7:00 p.m. Friday. The event features local songwriters/musicians and poets. The event is free and open to the public, both to listen and perform. Cafe Aromas also has an exquisite selection of pastries, coffee drinks, and beer.

The Kent Willis Straight Path Baseball Clinic is Saturday morning. Visit Propst Park on Main Street near Luxapalia Creek or contact the Parks and Recreation Department for additional information.

Interested in buying a house in the near future? I will be in the office on Saturday morning. Stop by to visit. Better yet, contact me to schedule an appointment to personally preview listings during the weekend.

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Find the Best Agent to Sell Your House

2012-01-12T06:24:00.003-06:00

Ask detailed questions about their experience and skills to help you find the right agent for your home sale.

How long have you been selling homes? – Mastering real estate requires on-the-job experience. The more experience agents have, the more likely they’ll be able to handle any curveballs thrown during your home sale.

What designations do you hold? – Designations like GRI (Graduate REALTOR® Institute) and CRS® (Certified Residential Specialist), which require that agents complete additional real estate training, show they’re constantly learning. Ask if agents have designations and, if not, why not?

How many homes did you sell last year? – Agents may tout their company’s success. An equally important question is how many homes they’ve personally sold in the past year; it’s an indicator of how active and aggressive they are.

How many days on average did it take you to sell homes? – Ask agents to show you this data along with stats from their local Multiple Listing Service (MLS) so you can see how many days, on average, their listings were on the market compared to the average for all properties in the MLS.

How close were the asking and sales prices of the homes you sold? – Sometimes sellers choose their agent because the agent’s suggested listing price is higher than those suggested by other agents. A better factor is the difference between listing prices and the amount homes actually sold for. That can help you judge agents’ skill at accurately pricing homes and marketing to the right buyers. It can also help you weed out agents trying to dazzle you with a lofty sales price just to get your listing.

How will you market my home? – The days of agents putting a For Sale sign in the yard and hoping for the best are long gone. Look for an agent who does aggressive and innovative marketing, especially on the Internet.

Will you represent me exclusively? – In most states, agents can represent the seller, the buyer, or both in a home sale. If your agent will also represent buyers, understand and consent to that dual representation.

How will you keep me informed? – If you want weekly updates by email, don’t choose an agent who plans to contact you only if there’s an offer.

Can you provide references? – Ask to talk to the last three customers the agent assisted. Call and ask if they’d work with the agent again and if the agent did anything that didn’t sit well with them.

Are you a REALTOR®? – Ask whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS® (NAR). NAR has been an advocate of agent professionalism and a champion of homeownership rights for more than a century.

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G.M. Filisko wrote copyrighted article appeared on House Logic.com and is used with permission. She is an attorney and award-winning writer who has found happiness in a Chicago brownstone with the best curb appeal on the block. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Mortgage Pre-Approval Is Not Enough

2012-01-11T06:24:00.004-06:00

There is a term that potential homebuyers seemingly overlook, and this can cause a major misunderstanding. REALTORS® encourage anyone buying a home to get mortgage pre-approval first. So what is the misunderstanding? Mortgage pre-approval is not mortgage approval. Let’s discuss the two.

Pre-Approval – Mortgage pre-approval is the process when a lender requests certain documents from a borrower. These documents often include income tax returns, pay stubs, letters from the employer, recent bank statements, recent credit card and loan statements and so forth. The lender requests a current credit score also. Lenders review all the information provided to establish the upper limit a borrower may use when writing a purchase offer on a home.

The lender needs even more information. Unfortunately at this point the borrower cannot provide a specific address, a specific purchase price or even forecast a realistic closing date that transfers legal ownership of the property. The pre-approval letter only establishes the upper limit on the mortgage. This helps the borrower know which houses to consider and which houses are unaffordable.

Fast forward a week or so. The homebuyer finally made a decision. He now knows exactly where he will live, when that will be and the exact amount of money needed to satisfy the seller. Guess who steps into the picture again?

Mortgage Application – The borrow now makes a formal mortgage application to the lender. All of the pre-approval documents become attachments to the formal mortgage application. Unfortunately, the application needs still more information.

A key missing element at this point is the appraisal. The lender hires a licensed appraiser to provide a current and unbiased opinion on the value of the property. The property must appraise at or above the purchase price. As an example, if the house sells for $175,000, then the appraiser must determine the value is $175,000 or above. Who would loan $175,000 on a house worth only $150,000? See the need for the appraisal?

The lender also hires a title company to research deeds. They want to be certain that the seller conveys a “clear title” to the buyer (borrower). There are cases when a person may try to sell something and the title search reveals that someone might have an ownership interest. If that is the case, that “long-lost heir” probably signs a quit-claim deed releasing any future interest.

Some mortgages also require other information; such as well, water, septic or termite inspections. Some might require a property survey. The lender gathers all information into one package and sends it to their underwriting department.

Final Step – Underwriting is the quality control phase of the mortgage process. They review all the documentation. Many times they ask for the updated income or debt verification. The underwriting department questions recent non-routine deposits. Satisfied with the answers, they appear ready to approve the loan, except for one thing.

They pull credit scores again. They want updated information that the borrower has not made major changes of his debt situation and that he maintained payment patterns. At this point, the lender authorizes the mortgage and sends it to their closing department.

The closing department sends the attorney all the documents needed for signature to complete the transaction. End of story – right? Wrong!

Mortgage Approval – Just because mortgage underwriting approved the loan, does not mean they cannot still review it prior to the closing. Remember that most lenders sell the mortgage in the secondary market to giants like Fannie Mae and Freddie Mac. It makes it easier to sell these loans if the primary lender used proactive strategies to insure they made a good loan. A literal last-second check does that. It is not uncommon for a true final credit check to happen two or three hours prior to a closing.

The key concept – Once a lender pre-approves a borrower for a mortgage, continue to pay recurring debt, including the current month’s rent and utilities. Do not take on any new debt. That means postpone credit purchases for appliances, furniture, lawn equipment and so forth. Pre-approval is not approval.

Ask your lender about pre-approval, final approval and the timing of that final credit check. ____________________________________

FHA Extends Loan Policy

2012-01-10T06:24:00.001-06:00

The Federal Housing Administration recently extended the program that allows investors to obtain an FHA mortgage to rehabilitate certain types of properties. Let’s provide some additional details.

On December 28^th FHA extended the temporary waiver of its regulation that prohibits using FHA financing to purchase and rehabilitate single family properties. This waiver normally applied to investors only that resell a property within 90 days. The new expiration date is December 31, 2012.

Most investors could not get a mortgage eligible for FHA insurance if the contract of sale for the purchase of the property was within 90 days of the prior acquisition. Not every investor or property type falls under the guidelines. It is best to check with FHA or a lender for factual information about a specific property and set of circumstances.

The main purpose of this policy extension had two goals. The first encourages investors that specialize in acquiring and renovating foreclosed and abandoned houses to act. The government wants to increase the availability of affordable “move-in ready” homes for first time purchasers or other buyers with limited financial resources. Another program goal is to assist the recovery of high-foreclosure neighborhoods and communities.

The waiver applies to all single family properties resold within the 90-day period after prior acquisition. The waiver is not limited to foreclosed properties either. However the waiver does have certain conditions. The waiver does not apply to mortgages insured under HUD’s Home Equity Conversion Mortgage (HECM) Program.

Your lender can provide additional details on the mortgage process. Your REALTOR® has a list of available properties in this area.

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December 2011 Real Estate Sales Info For Lowndes County, MS

2012-01-09T06:24:00.002-06:00

Each month we review real estate activity in the previous month. This helps anyone with a specific interest in the Lowndes County, Mississippi real estate market gauge the relative strength or weakness. It’s not a substitute for an evaluation on a specific piece of real estate. Rather, like national real estate information, this helps to provide general information about the local market.

The data presented is a representation based in whole or in part on information from the Golden Triangle Association Of REALTORS® or its Multiple Listing Service (MLS) predominantly for the period December 1, 2011 through December 31, 2011 but also for previous months. Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Several properties close each month without any involvement with a REALTOR®. These properties include but are not limited to private sales like a For Sale By Owner, builder owned real estate, bank owned real estate, or auctions. Those non-MLS transactions are not included in this summary.

During December 2011, a total of 25 residential real estate transactions closed with the assistance of a REALTOR® in Lowndes County, which also includes inside the city of Columbus. That is nearly identical to the December 2010 production and a huge increase from a month earlier. For calendar year 2012, real estate sales fell by 6 percent over the previous year. This marks the fifth straight year that sales failed to match or exceed the prior year.

The median house that closed in Lowndes County during December sold for $138,500 or about $68 a square foot. The median house represents an actual sale that is halfway between the house that sold for the most and the one that sold for the least.

The average house sold for slightly less than $133,000 or $67 a square foot. The average house may not be an actual sale. It is a mathematical computation. The average house sold for about 91 percent of the list price and spent almost six months on the market.

Some sellers question the impact of houses at the extreme top and extreme bottom of the market. We removed any transaction that closed above $300,000 or below $50,000. In the remaining $250,000 window is where the bulk of local real estate transactions occur. The median house sold for $150,000 or about $64 a square foot. The average house sold for about $156,000 or $77 a square foot.

In addition to the 25 closings, another six buyers wrote acceptable purchase offers to the sellers. Maybe it was just the Christmas season. Maybe it was the weather. But the six houses that went under purchase contract may be one of the lowest numbers in a single month in the last few years. That is not a good sign for the future. We report these six transactions when they actually close, and the terms of sale become MLS reported data.

Meanwhile another 47 houses went off the market in December because the listing contract expired. No buyer wrote an acceptable purchase offer. At the same time, 34 sellers put their house on the market. That brings to 349 the total number of houses on the market in Lowndes County. That is more than a 12 month supply of houses in the inventory. What does a 12-month supply of houses mean? Who is asking the question?

For a buyer, it means there is a great selection. With mortgage interest rates very low, it means affordable housing is a reality. For the seller, the 12-month inventory means that they must price their property to compete for the few buyers in the market and be willing to negotiate a price.

The above is only a general snapshot of the market. Contact your REALTOR® for exact information about the market value of a specific house and parcel of land.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. He is also a member of the National Association of Realtors. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

First Weekend of 2012 in Columbus, MS

2012-01-06T06:24:00.004-06:00

Every Friday we put real estate on the back burner so to speak in favor of highlighting community activities. Why do that? It’s hard to sell someone real estate in Columbus, Mississippi, unless they find the quality of life acceptable here. Let’s see what is happening this weekend.

Health related resolutions are among the most common of New Year’s resolutions. Our friends at Baptist Memorial Hospital have a full slate of activities, many of which are during the week. These include smoking cessation, nutrition education, and classes to improve appearance while undergoing chemotherapy. Contact the hospital for more information about specific education, prevention and support group programs.

If fitness is a resolution, then consider visiting the Frank P. Phillips YMCA on Main and Sixth Streets downtown this Friday at noon. It’s the Weight Watchers At Work lunch and learn. Take advantage of learning about how to balance portion size without major dietary changes. Learn to exercise for balanced weight loss. While at the Y, ask about waiting their joining fee for new members.

Bliss Yoga at 127 5^th Street North – directly across from the Trotter Convention Center has “Day of Community Wellness” on Saturday. They have programs about fitness and nutrition workshops starting at 1:00 p.m.

Another resolution people make is to find and lend a hand to meaningful projects within the community. Finding projects is extremely easy, thanks to our good friends at United Way of Lowndes County. There are numerous volunteer opportunities available every day of the week and in just about every part of the county.

There are needs for volunteer youth coaches, being a friend to a senior adult, disaster response, working for a volunteer organization, helping clean up neighborhoods and many others. Contact United Way for information about volunteer opportunities. It’s a great way to meet new people and provide help at the same time.

It is extremely important for people wanting to participate in next weekend’s Day of Community Service honoring the legacy of Dr. Martin Luther King to pre-register with United Way this week.

The Rosenzweig Arts Center is located at 501 Main Street in downtown Columbus has a home exhibit in their gallery this month. View the photographs of internationally known photographer Birney Imes. His Partial to Home collection is on display every Tuesday-Saturday until the end of the month.

For more than 20 years Imes roamed the countryside of his native Mississippi photographing the people and places he encountered along the way. Working in both black and white and color, Imes’ photographs take viewers inside juke joints and dilapidated restaurants scattered across the Mississippi landscape. Imes’ photographs have been collected in three books: Juke Joint, Whispering Pines and Partial to Home, and have been exhibited in solo shows in the United States and Europe. His work is included in the collections of the Museum of Modern Art in New York, the Art Institute of Chicago, La Bibliotheque Nationale in Paris and many public and private collections in the U.S. and abroad.

The Columbus Arts Council is hosting a “Season of Parties” as a way for you to personally ensure that art continues to be made in Mississippi. Each party incorporates the theme for this year's annual Gala, "Made in Mississippi" and is interpreted by individual party host. The season will starts at 6:00 p.m. Friday at the RAC and culminates in the Columbus Arts Council's Annual Gala and Auction in June.

Saturday is the second annual Jane Coleman Invitational Basketball Tournament, honoring the memory of the long time educator and coach at West Lowndes Middle School. Born in 1944, Coleman coached basketball and track, was the football statistician and put in time as cheerleading coach. For more than 30 years, she taught health, physical education and science, and was a member of nearly a dozen committees, programs and teams at the school.

Teams from Aliceville, AL, Columbus, New Hope, Noxubee, East Oktibbeha, West Oktibbeha and West Lowndes will compete starting at 10:00 a.m. at the Middle School Gym on Motley Road.

Have a real estate need this weekend? Contact me by noon Friday to set up weekend preview appointments. _________________________________________

5 Tips to Prepare Your Home for Sale

2012-01-05T06:24:00.004-06:00

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

Have a home inspection – Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

Get replacement estimates – If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

Make minor repairs – Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

Clear the clutter – Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

Do a thorough cleaning – A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.

If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

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Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Home Buying Tips For 2012

2012-01-04T06:24:00.006-06:00

All real estate is local. That is why national real estate trends seem utterly useless for most homebuyers. That said; there are some strategies (not trends) applicable to every buyer in every market.

Credit Rating Check-Up – Unless a buyer has the cash to complete a home purchase, getting mortgage pre-approval is the first step to buy a home. Most lenders make their first step determining the borrower’s credit score. The credit report is nothing more than a recap of how a person discharged previous financial obligations. The higher the credit score, the more likely the person will repay future debt.

Three major credit reporting agencies compute a credit rating slightly differently. Those agencies receive data from a number of creditors. It is very possible that if a creditor makes a mistake, that mistake appears on three different reports. Clean up mistakes by requesting a free annual credit report. Each credit reporting agency must supply an annual complimentary report, upon request. Space out those credit reports over a 12-month period.

Pay Down Existing Debt – Most lenders use a 29/41 income to debt ratio. This simply means that a borrower cannot have recurring debt that exceeds 29 percent of the monthly household income. Assume a household has a $36,000 annual income. That is $3,000 a month. The sum of recurring debt for car loans, student loans, credit card bills and so forth should be less than $870. When adding the mortgage, the monthly debt cannot exceed $1230. The remaining income accounts for daily living expenses such as food, clothing and other necessary expenses.

Save For Future – Lenders want responsible borrowers. A sure sign of financial responsibility is the presence and continued growth of personal savings. This might be an individual retirement plan or other type of long term investment.

Documenting the amount and consistency of savings conveys the message that a borrower recognizes and prepares for major purchases that require significant money. It conveys preparation for a rainy day. It shows foresight and restraint about fiscal matters. It foreshadows that saving money to make a wise investment nets even greater financial rewards decades from now.

Know The Limitations – Once a lender pre-approves a borrower for a mortgage, that borrower has the ability to buy a home. Knowing they have a pre-approval limit, some buyers try to get as close to that limit as possible. It is a wise homebuyer that stays below his financial capability. As an example, if a lender pre-approves a borrower for a $200,000 mortgage, try to keep the purchase below $150,000. That strategy alone reduces the monthly debt by more than $200.

Here is a more common practice, and one that is almost as good. Sometimes a buyer cannot find the right house in the right location with the right features for (in this example) $150,000. But one is available for slightly above that amount. Keep in mind that for every $5000 in additional purchase price, the monthly house payment increases by about $25. At the end of the month, the house payment must fit into the overall household budget.

Shop For The Best – Here is a very common mistake homebuyers make. They go overboard trying to find the best home possible. Buyers recognize that not all houses are equal just because they have four walls and a roof. That’s the way it should be. There is a difference in comparative shopping and indecision.

Many of those same buyers do not use the same care and diligence in finding the best mortgage. Just as each house has different features, lenders have differences as well. The best adjective to describe the individual differences is in the terms of the mortgage. All 3.875 percent 30-year fixed rate mortgages are not equal. To make the decision easier, lenders must complete a standard “good faith estimate” that explains origination fees, underwriting fees, and so forth.

It is not quite that easy in comparing property insurance. Competing insurance carriers have differing coverage amounts and deductibles. Compare mortgage lenders and insurance carriers using the same amount of care in selecting a home. That is the best way to find the perfect fit in a monthly mortgage payment.

There is one final point in comparison shopping. Find the best REALTOR® that represents the needs of the buyer. The seller already has a REALTOR® representing his needs.

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Forecasting The 2012 Real Estate Market

2012-01-03T06:24:00.004-06:00

The old year is gone. Hail the New Year. But what does 2012 hold for the real estate market. Let’s take a quick look at some national figures to try and anticipate the future real estate market in the coming days.

Short Sales Up – Foreclosures Down – According to an MSNBC article published on December 29, 2011, lenders want fewer foreclosures and appear more accepting of short sales in the upcoming year. Short Sales increased by 26,000 nationwide in 2011 versus 2010. At the same time foreclosures fell by 255,000 in 2011 versus 2010. The main reason that lenders prefer a short sale is financial. The average property sold for about $30,000 more in a short sale than in foreclosure. The bottom line for buyers is that those wanting to purchase only foreclosed properties might find themselves giving themselves fewer housing options.

Sticking With Foreclosures – There is another reason for fewer foreclosures. Think back about 15 months. Some lenders faced severe criticism in the fall of 2010 for taking shortcuts during the foreclosure process that included authorizing a foreclosed sale prior to proper and complete review. While lenders still have a number of foreclosed properties on the books, they now take extra precautions to insure regulators thoroughly review the liquidation process to help improve the image of the lender to the public.

National Debt Effect On Housing – Remember the confrontation between the White House and the House of Representatives concerning the national debt and budget. That fight is far from over. Neither party has the political will to propose an end to the mortgage interest deduction, as espoused by the Debt Commission. Major economic changes seldom happen in an election year. Change may not come in 2012, but it will come eventually.

Increased Home Building – Housing starts increased by more than 20 percent in 2011, and triple that of 2008 levels. At least that is the way that CNN Money interpreted data a week before Christmas. One reason is the lower cost to borrow money. While this is an encouraging sign, do not interpret the increase as a sign of the return to a strong market. The overall market is very strong for buyers because of the affordable interest rates and large inventory. The same is not true to sellers. To compete for the few buyers, sellers must demonstrate a willingness to negotiate. Those unwilling to compromise will find it difficult to convince a buyer to sign a purchase offer. However the renewed interest in new home sales is an early sign of positive consumer confidence.

Other Signs – The Wall Street Journal reported on Saturday that several economic indicators showed favorable signs. These included the October 2011 employment numbers, consumer spending, reductions in debt, the gross domestic product, and the increased number of US exports. Those numbers become very important, even in the local market, because unemployed people cannot buy a house. As businesses position themselves economically for a recovery, there is renewed hope of stronger home sale prices. More buyers in the market means that sellers do not have to negotiate to the level they do today, with fewer buyers.

Falling Water – One of the chief obstacles preventing many homeowners from selling is the amount of money they owe on the mortgage. While not a pleasant condition, this may have had a stabilizing effect. Many bought just prior to the market peeking. Recognizing they purchased in a “high” market, they refuse to sell in a “low” market. These homeowners did not panic, despite personal apprehension.

They saw the housing market for what it really is – a temporary situation. These homeowners continued to pay down the existing mortgage. They are lowering the water level. A rebounding market further improves the profitability. There is also a hidden teaching point to convey to their children. Despite some temporary conditions, housing remains a viable staple of national economy with even greater importance on personal wealth and prosperity.

What To Do – The answer is simple. Any real estate decision involves a tremendous amount of money. No one source of information is ever enough. Using generic information for a specific real estate decision can lead to a mistake. That is why it is important to visit with a REALTOR® who can listen to all the details before suggesting a specific plan of action.

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Having A Ball In Columbus, MS

2011-12-30T06:24:00.005-06:00

Happy New Year! Columbus is a great community and this weekend proves it is unique in Mississippi because of one event, recognized as such. Let’s see what is going in the city to ring in 2012 in style.

Saturday is the annual “New Year’s Eve Block Party” in downtown Columbus. First, a brief history lesson. A few years ago, our good friends at Main Street Columbus conceived the idea to drop a ball as a way to ring in 2009. They had block party downtown. The ball fell at the stroke of midnight. That first ball measured about 2-feet in diameter and fell only 25-feet.

That event won Main Street Columbus a state-wide award for the most creative event in 2009. But those creative people at Main Street knew they could do better.

The city rang in 2010 by dropping an aluminum ball that is more than 10-feet in diameter. The lighted ball descends on downtown Columbus from atop a 100-foot (10-story) crane. Once again this year, Columbus has the honor of being the only community in the state of Mississippi that drops an illuminated ball to ring in the New Year.

The New Year’s Eve Block Party is Saturday. The Scavengers provide musical entertainment on College Street between 4^th and 5^th Streets starting at 9:30 p.m. The wristband (and the New Year’s Eve passport) is the admission for the street dance.

Get the passport stamped at two of the participating six downtown restaurants for a chance to win the $500 door prize and other giveaways as well. Participating businesses (starting at River Hill and moving toward Leadership Plaza) that have New Year’s Eve food and beverage specials include –

1. Harvey’s (free appetizers)

2. Cafe Aromas (free cookie with purchase of two coffees)

3. Station 7 Bar and Grill (20 wings and a pitcher of domestic beer for $20.12. Basic well drinks $2.12. Music by the Win-Wheel Band)

4. Zachary’s (half price appetizers)

5. Fuhgetaboutit (no cover, live music, and free Mimosa)

6. Princess Theater (no cover and music by Star and Micey)

All of these are on Main Street or Market Street in downtown Columbus. Remember to turn in the passport before the ball drops. The winner must be present at the ball drop near Leadership Plaza to claim the door prize.

Advance tickets are available Friday at the Main Street Columbus office, Columbus LINK, and WCBI TV. Tickets are also available at the Block Party itself.

There are several other New Year’s Eve parties planned away from downtown. Some of these include at Fat Daddy's Bar and Grill inside the Holiday Inn on US-45, La Fogata Grill on Alabama Street in East Columbus and the New Hope Community Center on Stadium Road, where The Echoes entertain.

Here is a great service to remember for Saturday night (or in the wee hours on Sunday) – and this one is absolutely free of charge with no strings attached. To help keep the streets safe, the Columbus Police Department will drive party-goes home absolutely free of charge, whether at the Block Party or another local venue. It’s so much better to get the free ride home, than the ride “downtown” that eventually costs a lot of money.

Tuesday at 9:00 a.m. at the upper level of the Trotter Convention Center on 5^th Street North is the inaugural ceremony for all county officials. Stop by and wish the elected leadership – the supervisors, school superintendent, sheriff, circuit clerk, chancery clerk, tax assessor and judges – all the best as they begin a four-year term of public service.

I hope that everyone experiences joy, health, peace and prosperity in 2012. Any resolution including even one of those elements will make for a very Happy 2012.

Have a real estate need this weekend? Contact me to make an appointment. Next blog is Tuesday. Happy New Year!

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Compile a Home Inventory with the Right Tools

2011-12-29T06:24:00.004-06:00

A home inventory of your belongings for insurance purposes is a relatively inexpensive way to make any future claims go smoother.

Creating a home inventory for insurance doesn’t need to be complicated. All you really need is a pencil and paper. The key is to have a record of your possessions in the event you experience a theft or casualty loss from flood, fire, or other disaster.

But the more thorough the documentation of your belongings, the less likely you are to run into problems when you file an insurance claim. That’s why you should consider using a digital camera, fireproof safes, and other equipment to create and store your home inventory. Devote a full day to the task.

Take pictures of your belongings – Photos of your belongings go a long way toward demonstrating ownership and value. Digital photos are preferred, since they’re easier to print and store. A decent digital camera costs less than $100. Be sure to get full-room shots, as well as close-ups of items. Don’t neglect to photograph possessions inside drawers, cabinets, and closets.

Video is even more convenient and effective, especially since you can record audio along with the images. Describe items and any identifying details as you film your home room by room. Digital camcorders are available for less than $150. It’s a good idea to keep backup copies of digital files and hard-copy printouts in a safe place. (More on storage options below.)

Prepare a written home inventory – Images alone aren’t enough. You should also prepare a written home inventory. Your insurance company will likely ask for one if you ever file a claim. Include as much identifying detail as possible, such as serial numbers, brand names, purchase dates, and estimated costs. Keep a copy off-site, perhaps with a friend or in a bank safe-deposit box, in case your home is damaged or destroyed. Download our free home inventory worksheet to get started.

Home inventory software is also available. Enter information on your possessions, attach digital images, and store the data electronically. The Insurance Information Institute has a free program called Know Your Stuff, or there are a number of programs available for purchase.

Be sure to attach receipts to your home inventory list. If you’re storing your records electronically, you’ll want to scan receipts at a copy and print shop or purchase a scanner. Pick one up for as little as $50 at an office supply store. Digital copies of receipts come in handy if originals are damaged or lost.

Safe ways to store your records – When backing up digital files, a USB drive—sometimes called a “thumb” drive, due to its small size—can be useful. Buy one for as little as $5. Simply copy the files onto the drive and keep it somewhere safe, preferably away from your home.

You can also stash a drive in a pre-packed emergency “go” bag, which should be accessible in case you need to evacuate quickly. An external hard drive can perform the same function, though it’s less portable.

You can use a bank safe-deposit box to store paper records, drives, and other valuables off-premises. Rent may range from about $25 per year for a small box to more than $100 for a larger box.

If you like to keep important documents closer at hand, consider a fireproof safe, which is usually waterproof as well. You can find small safes for as little as $50, but a more representative range for good residential fireproof safes is $150 to $300. Larger, high-end safes can cost more than $1,000.

When your home inventory files are electronic, it’s relatively easy to use online backup systems to keep digital copies outside of your home. That’s a big plus if your computer is stolen or destroyed. Some backup services like Mozy offer limited storage space for free, while others like Carbonite charge $5 or more per month. Choose a backup service whose features fit your needs.

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Gwen Moran wrote copyrighted article appeared on House Logic.com and is used with permission. She has written about finance and real estate for over a decade. Her work has been in Entrepreneur, Newsweek, and The Residential Specialist. A Jersey Shore resident, she’s weathered hurricanes, Nor’easters, and one earthquake.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Winter Gardening: Plants that Provide Beauty All Year Round

2011-12-28T06:24:00.004-06:00

Just because your garden is dormant for the winter doesn’t mean you should snooze, too. Experienced gardeners do their dreaming – and planning – when the snow flies. So while you’re thinking of blossoms and butterflies, be sure to add trees and shrubs that look great even in snow.

Winter gardens don’t have to be wastelands of dead plants and snow drifts. A little advance planning will give your yard curb appeal during the coldest months of the year.

“Winter is not going to be a riot of color; it’s more little jewels,” says Alison Caldwell, buyer for Hicks Nurseries in Westbury, N.Y. “It’s not as flamboyant as May. But that doesn’t mean there shouldn’t be winter interest.”

It’s all about structure – Three-season landscapes concentrate on blooms and foliage, but winter gardens need structure to provide visual interest.

When you choose plants and trees in spring, consider varieties that provide a pop of color in winter — shrubs that set berries, and trees that reveal interesting bark when the leaves are gone.

“The bark on crape myrtle looks like statuary,” says Caldwell, “and the way the weeping form of Japanese maple holds snow is beautiful.”

Not only do ornamental trees look great, but for a $50 to $100 investment, they’ll add to the value of your property.

Berry bushes also attract birds, which give your yard flashes of color and movement. Ornamental grasses, with tall, slender stalks that sway in the wind, put on a winter ballet. (Note: You can leave them all winter, then cut them down in the spring to promote new growth.)

Plant these for winter wonder – Here are some popular varieties that provide a winter show. (Make sure you check the plant’s Cold Hardiness Zone before buying.)

Ilex (holly): Shiny green leaves and berries that change color with the temperature make Ilex a winter favorite. Plant male and female shrubs together to produce lots of berries. Some popular varieties are Winter Gold, which sets cluster of yellow berries in fall, and Jersey Delight, which sports bright red berries. (Zones 4-8)

Cornus (dogwood): Branches of some dogwood species have wonderful colors that dazzle in winter. The Red Twig dogwood is a compact shrub that sports dark red stems in winter; the Yellow Twig dogwood shows off bright yellow stems. (Zones 3-7)

Camellia japonica: This shrub maintains dark green leaves year-round, but some species delight home owners in winter with a profusion of blossoms. The Alba Plena variety has white winter blossoms, while the Bob Hope sports magenta blossoms with yellow stamens. (Zones 8-10)

Hamamelis (witch hazel): A wide range of blossoms appear on bare twigs throughout winter, making this plant a dazzling sight in hedges. A lovely fragrance makes witch hazel a good shrub to plant near doorways. (Zones 5-9)

Miscanthus: White plumes of this 5-foot ornamental grass sway in the wind throughout winter, peeking above snow blankets and giving your landscaping varied height and visual interest. (Zones 6-9)

Helleborus: This compact plant delivers blossoms above green, lance-shaped leaves from January to March in many regions. Some popular winter varieties include: Winter’s Bliss Lenten Rose (cream), Mardi Gras Bicolor Mix Lenten Rose (shades of pink), and Pine Knot Select Strain Lenten Rose (purple and lavender). (Zones 4-9)

Last-minute color – If you didn’t think about winter color when you planted in spring, here’s how you can add some 11th-hour pop to your winter landscape.

In beds and containers, plant hearty ornamental heirloom vegetables, such as varieties of Swiss chard, kale, and cabbage

Hang bird feeders to attract wild birds that stay around throughout winter. Birds are always searching for water during cold months, so add a heater to bird baths, too.

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Lisa Kaplan Gordon wrote copyrighted article appeared on House Logic.com and is used with permission. She is a HouseLogic contributor and builder of luxury homes in McLean, Va. She’s been a Homes editor for Gannett News Service and has reviewed home improvement products for AOL.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

9 Ways to Increase Daylighting to Fend Off Seasonal Affective Disorder

2011-12-27T06:24:00.003-06:00

Adding skylights, solar light tubes, windows, and other means of daylighting can brighten your winter and help alleviate symptoms of seasonal affective disorder (SAD).

Seasonal Affective Disorder affects many Americans, but you can help by letting more daylight into your home. If winter brings on bouts of the blahs, you’re in good company. As days shorten and temperatures drop, most people tend to slow down and feel less energy.

For some, however, the problem can be serious. Days of low light may greatly alter moods, and can even be hazardous to your health. The condition has a name: seasonal affective disorder, or SAD. In some cases, medical attention may be necessary.

Fortunately, your house can help combat the winter doldrums and even SAD. Here’s how.

What’s seasonal affective disorder? - Bears aren’t the only ones with the urge to hibernate.

Seasonal affective disorder (SAD) is a big-time case of the winter blues – a very real type of depression. It affects as much as 20% of the U.S. population, spiking among people living in northern latitudes.

Surveys show that less than 5% of people in southernmost states, such as Arizona and Florida, experience symptoms, while in a northern city like Seattle, more than 30% of the population cites the ill effects of SAD. The symptoms include: low energy, over sleeping, poor concentration, irritability, avoidance of social situations and craving for sweet or starchy foods, with consequent weight gains.

How your house can help – Turning on a few extra lamps is a natural response, but what your body really craves is more daylight – simply switching on a few more lights won’t do the trick. Typical artificial light can’t hold a candle to the power of daylight.

For example, standard indoor lamps produce only 100 to 1,000 lux (a measurement of light intensity). Compare that to the 50,000 to 100,000 lux of a sunlit sky.

Even an overcast day can pack 10,000 to 25,000 lux. That’s why good interior lighting, although cheering, doesn’t get to the heart of our biological need.

Instead, you need to boost the daylight inside your home, known as daylighting. Try these methods:

1. Trim tree branches and shrubs that block sunlight. An added benefit: cutting back foliage so it’s at least 2 feet away from your house helps prevent water damage to your roofing and siding. Cost: $50 for pruning tools.

2. Add a solar light tube. A 10- to 14-inch reflective solar tube is a relatively simple way to bring outdoor light into otherwise dim areas of your home, such as hallways. Cost: $500, installed on a one-story house.

3. Add a skylight to your home. A skylight provides 30% more light than a window. Cost: $2,500 and up, installed.

4. Add windows. If you have the wall space, consider letting in more daylight with a new window. Cost for a 3-by-5-foot window: $1,000 to $1,500, installed.

5. Add a bay or bow window. These windows bring in a lot of light and give a room a sense of spaciousness. Cost: $5,000 and up, installed.

6. Replace a solid exterior door with an all- or partial-glass door, or a door with glass sidelights. An upscale door replacement is $5,000 to $10,000.

7. Open curtains and blinds so they don’t block natural light. Make a habit of opening your window coverings first thing in the morning. Cost: $0

8. Rearrange furniture in your living room, office, or den so you’ll be closer to bright windows. Place large pieces of furniture against walls so they don’t block light. Cost: $0

9. Get outside. Whenever possible, take a long walk or tackle an outdoors chore. Cost: $0

Professional help – Sufferers whose symptoms get in the way of enjoying normal activities should consult a physician or therapist. Medication, behavioral therapy, and treatments using a special 10,000-lux light therapy lamp are often prescribed.

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Dave Toht wrote copyrighted article appeared on House Logic.com and is used with permission. He has written or edited over 60 books on home repair and remodeling for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest. He’s a former contractor with decades of hands-on experience.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Merry Christmas from Columbus, MS

2011-12-23T06:13:00.011-06:00

Merry Christmas!

This is the special season (and more particular) and weekend of the year to spend with the family and loved ones. That is exactly what I am doing. Real estate is important, but this weekend it takes a back seat to more important aspects of life. Beloved family members visiting from central Florida takes the priority. Yes! People do visit Columbus, Mississippi at Christmas!

Take visitors to eat in local restaurants, shop in local store and enjoy local entertainment spots. Remember the huge economic impact every dollar has on the Columbus economy, especially as the holiday merchandising season ends and another part of Christmas begins.

Despite federal budget cuts, our friends at Columbus AFB want everyone (especially the children) to know that the Air Force is sparing no expense in tracking a sleigh full of toys this weekend. Track Santa on his annual journey on-line. Want to use social media to track that jolly ole elf? Visit Twitter, Facebook or YouTube.

Mentioning Columbus AFB Christmas means only one word – Happy. For those that don’t know it, the Happy Christmas Fund, Inc. provides clothing and necessary items to more than 400 children, 150 fruit baskets to elderly, and assistance to those affected by tragedy during the holiday season.

Named in honor of its founder, the late George “Happy” Irby, this charity has its roots more than 60 years ago and all because of Happy’s generosity. He worked at the Officer’s Club. During the year he saved every penny of his tips. At Christmas he used that money to buy presents for needy children. As the officers heard about this, their tips became larger.

Even today, 100 percent of the donations go to those in need. There is no overhead. All gifts qualify for as a 501c3 tax deductible gift. Make checks payable to: Happy Christmas Fund, Inc. P.O. Box 9292, Columbus, MS 39705.

Like most communities, there are limited quality of life events this weekend. Many of our churches have either Christmas Eve services on Saturday night or Christmas Day services on Sunday morning. Please take an hour this weekend to remember the “real” Reason for the Season.

For those feeling lonely at this time of the year I have one word – DON’T. Visit the Salvation Army. They always need help serving Christmas meals. Visit a hospital or a nursing home. There may be a patient that is just as lonely that can’t visit anyone because of a physical impairment. Be a good neighbor, especially to those that need an encouraging word the most. It’s possible to find a new friend. Following that simple instruction might make this a most memorable and enjoyable Christmas.

Contact me to make an appointment for the upcoming week to discuss a real estate need. The next blog is Tuesday. Again – Merry Christmas!
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Andy Kalinowski is a REALTOR® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Solar Christmas Lights: Should You Make the Switch?

2011-12-22T06:04:00.001-06:00

Solar Christmas lights don’t cost anything to operate, but the high purchase price might not add up to savings.

Now there’s a new kid in the string-light neighborhood: LED solar Christmas lights are appearing at retailers around the country, promising grid-free festive lighting for holiday-happy consumers.

Powering up solar Christmas lights – A string of solar Christmas lights uses a small solar panel for power; there are no extension cords that must be plugged into outlets. The panel — about the size of a hockey puck — powers rechargeable batteries that illuminate a 25- to 100-bulb string of LED lights.

Panels come with small stakes so you can put them in the ground, where they can take advantage of the sun. A fully-charged string of lights should glow for 6 to 8 hours after the sun goes down.

Solar lights vs. LED plug-in costs – Most consumers expect new technologies to cost more, but if saving energy and money is your main reason for considering solar-powered LED holiday lights, solar lights may not offer enough cost-saving to offset the higher initial purchase price.

Compare purchase prices: The average cost for a 100-light string of miniature solar-powered LED lights is about $0.30 per bulb, or about $30 per string.

The average cost for a 100-light string of miniature plug-in LED lights is $0.08 per bulb, or about $8 per string.

Compare costs to operate: Operating a string of plug-in LED Christmas lights for 300 hours — more than enough hours for an entire holiday season — costs about $0.30, using an average energy cost of $0.11 per kilowatt hour.

Solar-powered Christmas lights, of course, don’t cost anything to operate. That means you’re saving 30 cents per year in energy costs.

Do the math, and you’ll see that it’ll take about 45 years for the energy savings from solar-power to equal the difference in purchase price between a plug-in string and a solar-powered string.

Advantages of solar lights

No extension cords

No need for exterior electrical outlets

Withstand cold temperatures and precipitation

Zero cost to operate

Light output comparable to plug-in lighting

A green option

Disadvantages

Higher initial cost to purchase

May not operate under cloudy skies

Unproven longevity (too new on the market for results)

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Alyson McNutt English wrote copyrighted article appeared on House Logic.com and is used with permission. She has written about the joy of green cleaning for publications like Pregnancy, Conceive, and BobVila.com. She buys her baking soda and vinegar in bulk and uses them liberally for everything from disinfecting laundry to soaking up her kids’ food stains.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Overcoming Generation Y Home Buying Objections

2011-12-21T06:12:00.002-06:00

Yesterday’s discussion concerned the reluctance by Generation Y to purchase a home, even though they fully understand the financial benefits and rewards. About 5.9 million members of Generation Y now live at home, an increase of 400,000 from last year. Let’s try explaining some of the rationale that Generation Y uses and the unique pressure they face.

Current Market Condition – It is a very legitimate objection to point out that housing values declined in the past five years. Why would any sane or rational person want to buy a house only to see the value fall? The National Association of Realtors in their annual Survey of Home Buyers and Sellers reported that the median US house sold for $179,000 last year, compared to $215,000 in 2007. There is no way to create wealth by losing $36,000 in homes value over that period of time. That doesn’t make any cents (pun intended)! This is when proper insight and understanding come into play.

Supply and demand always dictate prices for every good or service traded in the free market. The current housing market has few buyers (demand) and plenty of sellers (supply). It’s Economics-101. When there are fewer buyers and more sellers – prices go down. When there are more buyers than sellers – prices go up. So why are there only a few buyers?

Before 2007 most people could generate tremendous net return on investment by buying and then selling real estate. It beat investing in a 401(k) or any other paper or precious metal investment. The inevitable happened. The bubble did burst. Housing prices fell. So why buy real estate? Is there a future in it?

Future of Real Estate – Housing is a basic human necessity. Since the dawn of civilization, people have needed shelter. Technology improved the shelter. Inventions like electricity, indoor plumbing and controlling room temperatures are today’s standard. Here is the bottom line. As long as people inhabit the Earth, they need housing.

People are born every day. Children grow up every day. Marital status changes daily. People die every day. That means there is a continual need for people to buy and sell real estate to meet those changing needs. Here is another fact.

Yes, the market is down. Here is a more accurate description. The market is correcting itself. For too long housing prices became artificially high. What happens after the correction? The market comes back stronger. Why? It learns from past mistakes. Let’s consider this very real example.

Past Mistake – It is very easy to buy a house that can become a financial nightmare. Why? A home buyer wants to use most of their pre-approval limit on the purchase of a new house. An expert evaluated their income and debt. That expert should know.

Over time to make ends meet, the home owner now finds it necessary to have extra sources of income. Spending quality family time decreases. They don’t get enough sleep. The result is the quality of their work performance and personal relationships deteriorate. There is a one-word description for this – stress.

Here is a way to avoid that type of stress. Buy a great house that is significantly below the mortgage pre-approval limit. So what if the house does not have granite countertops or stainless steel appliances. Compute the extra cost to heat and cool that spare bedroom, bonus room or dining room used only two or three times a year. Think smart when buying a home.

Get In The Game – Don’t let the media, friends, relatives, or even this blog put unnecessary stress or improperly influence the home purchase decision. Buy a home because it is the right decision in the long run.

Now is a great time to buy a house. Mortgage rates continue to remain very low. Home inventory levels remain high. Most sellers receiving an offer give it serious consideration. But just because it’s the right decision at a great time does not mean it’s perfect in every situation.

Find a REALTOR® with an Accredited Buyer’s Representative (ABR®) designation. Let that REALTOR® explain the facts about the local real estate based on individual circumstances. It is very likely those facts will include some good things and some not so good things. That’s the sure sign the REALTOR® is telling the absolute truth.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative (ABR®) with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Why Does Y Not Buy?

2011-12-20T06:09:00.002-06:00

Last week we reported about a national survey by the Futures Company that revealed more than four of five Americans believe home ownership is a good long term investment. So why are real estate sales down? Let’s try to examine that perplexing question.

Background – The average age for most first time homebuyers remains 25-34 according to the National Association of Realtors annual report of Homebuyers and Sellers. This age group remains firmly committed to the concept of home ownership, according to a recent Trulia survey. It takes another survey to explain the key word in the last sentence – concept.

John Burns Real Estate Consulting discovered that the actual number of 25-34 year olds that lives with their parents increased from 4 million in 2003 to 5.5 million in 2010. Here is another fact from that same annual Burns report. The 5.5 million swelled to 5.9 million in 2011. That is a seven percent increase versus 2010.

Say What – In one calendar year alone, another 400,000 members of Generation-Y – the “Net Generation,” the “Millennial Generation,” “Generation Next” knows and understands the value of homeownership, yet they made a conscious decision to live with mom and dad.

There are 5.9 million potential homeowners in the prime age for buying a home that opt to live where – in mom and dad’s home rather than one they personally own. If just one in five of these bought a home – that would be nearly 1.2 million new home owners.

Who Is This Generation Y – They were born during the Carter, Reagan or Bush Presidencies. They grew up during the Clinton, Bush and Obama Administrations. That simply means that Generation Y is a bi-partisan product.

Increasing numbers of Generation Y know the right thing to do. They realize the wisdom in buying a home. They want to grab a piece of the American Dream. There may be valid reasons for their reluctance to achieve it.

An unacceptable income to debt ratio or an unsatisfactory credit score are two factors that take a long time to repair. The most challenging part of reversing those two factors starting the process and then sticking with it.

Where Did Generation Come From? – They are children of the “baby boomers,” the grandchildren of the “Greatest Generation.”

What made the Greatest Generation great? They preserved the great depression. They won World War II. They rebuilt America. The baby boomers created real wealth in this country. Think about the great improvements in the standard of living in the last 40 years. Generation Y has a proud heritage.

It seems the words of President Kennedy got lost somewhere between that cold January morning in 1961 and today. In his inaugural address, he challenged America to “Ask not what your country can do for you. Ask what you can do for your country.” JFK knew Washington did not have all the answers. He trusted the American People.

Generation Y has the potential to be a great generation. This country faces many challenges. One of those challenges is a weakening economy. One of the solutions is by the private ownership of property.

Parental Advice – It’s time for the parents of the Generation Y to challenge their children to become great. Help and encourage them with words and actions. Make financial and economic subjects a regular topic. Computer software or financial apps remain useless without discipline. Instill that discipline.

Remind Generation Y that times are easier now than during the inflation years of the 1970’s. Tell them about waiting on line just to pump a then very expensive one-dollar a gallon gasoline. Remind them that 1970’s had an unemployment rate comparable to todays. Economists then invented a term not included in today’s lexicon – misery index, because there is no inflation.

Making home ownership a reality in 2012 might even take a repayable personal loan to help pay for a down payment or closing costs. Demonstrate that leadership.

Advice for Generation Y – Set goals. Save for those goals. Live within a budget. Pay bills on time. Establish a good name and a good reputation within the community. Respect the traditions of the past. Listen to advice. Take calculated risks. Don’t be afraid of failure. Be bold and creative. Continue to peruse the goals, no matter what.

Make home ownership a 2012 resolution worth keeping.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. He is also a member of the National Association of Realtors. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

A Christmas Present For Home Buyers

2011-12-19T06:06:00.004-06:00

Before adjourning, the Senate approved a two-month tax cut. That’s the candy. How about some castor oil? Where does the money come from to pay for that tax cut? In keeping with the season, the tax cut comes with the compliments of Ebenezer Scrooge. And guess who Mr. Scrooge, in consultation with the Grinch, wants to pay for the tax cut?

Facts – On Friday the Senate voted 89-10 in favor of a bill that attached a permanent fee to a two-month tax cut. Without the legislation, payroll taxes will increase from 4.2 percent to 6.2 percent on January 1^st. But what type of fee did the Senate attach?

To pay for the two-month tax cut, the Senate attached a user fee to any mortgage backed by Fannie Mae, Freddie Mac and the Federal Housing Administration. The cost of borrowing money for a house or refinancing a mortgage just went up permanently for most middle class Americans. These fees last for the life of the loan. Merry Christmas Mr. Scrooge! Let’s sort out the details.

The Senate needed to find $33 billion dollars to pay for tax cuts that the Administration believes will affect 160 million people for only two months. Do the math. If divided equally across the board, most Americans would pay about $100 per month more in taxes beginning January 1^st.

Redefining Rich – To find the money, the Senate added a user fee to every transaction involving a government mortgage giant. The talk of the richest one-percent paying for these cuts is bogus. The richest one-percent get private mortgages – not government backed loans. They pay nothing because they use nothing.

It’s the remaining 99 percent that rely on some sort of government subsidized or insured mortgage. Fannie, Freddie and FHA fund insure nine of every ten mortgages. Here is a powerful example to better explain the point.

Expect to pay an additional $15 a month for a $200,000 mortgage. Do the math. That is $180 a year that the mortgage lender will send directly to the U S Treasury to pay for those tax cuts.

Wait a minute – Send your money directly to the treasury? That is not a fee. It’s a tax. It’s a tax not borne by the top one-percent either. The only people paying this “fee” are those obtaining a government backed mortgage.

The top one percent cannot qualify for a government backed loan. They have too much money. It’s the working class American’s that will pay this two-month tax extension. Why government officials will not be truthful and honest with the public is disingenuous and reprehensible.

Let’s look at the other side. A taxpayer with a $50,000 annual income would receive about a $165 tax cut for January and February combined. The $15 a month “fee” remains a permanent fixture. Over 30 years, that is a $5,400 revenue stream for Uncle Sam. The fee pays for the two-month tax cut for more than 30 people.

Explaining Washington accounting – The Senate needed $33 billion dollars to pay for the tax cuts that will last until February 29, 2012. How long will it take for these new fees to equal $33 billion? Grab hold of something. The answer is not pretty.

The non-partisan Congressional Budget Office computer models estimated raising the revenue for the two-month $33 billion tax cut should end sometime in 2022. That is not a typographical error. It will take 120 months to repay for a two month spending spree.

Teaching Point – This is the same type of logic that many individuals have when they see either a good or a service they need, want or desire. They buy it and postpone paying for it. Politicians and bureaucrats in Washington struggle with the same issues facing every household.

Getting spending under control is tough work. No one likes to do it. It causes economic pain. It takes maturity and strength to attain solid fiscal footing.

Good News – It is still a good time to buy a home. However, it might be a wise time to consider other mortgage options. Ask a mortgage lender about private mortgages. Ask the likelihood of the lender selling the mortgage in secondary market. (A lender can clearly explain what appears to be Greek here). One of the intentions in the Senate bill is to have home owners become less reliant on government mortgage financing. Do the math. Remember this issue can again surface in two months.

This is clear Bob Cratchit. If the House passes the bill and the President signs it, the cost of postponing a home purchase in 2011 just increased.
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Sharing The Christmas Spirit In Columbus, MS

2011-12-16T06:28:00.009-06:00

It’s nearly Christmas. A full slate of community activities packed the past two weeks in Columbus, Mississippi. Anyone thinking about relocating here saw a wide variety of unique and traditional ways to celebrate the season. There are still some wonderful ways to celebrate “The Most Wonderful Time of the Year” and improve the quality of life here.

This is the final weekend for the annual toy drive sponsored by the Columbus Police Department. Here is the great thing about this toy drive. Anyone wanting to donate either a toy or a cash (check) gift can do it any time by coming to the east entrance of the Columbus Municipal Complex at 1501 Main Street. Remember that Santa’s sleigh departs on Wednesday, December 20^th, so bring in those gifts before then.

When buying holiday gifts, here is an important fact to ponder. It’s a blogged theme from a few weeks ago. For every dollar spent with a locally owned and independent merchant, 68 cents comes back into the local economy. Spend that same dollar locally but in a franchised or national chain store or restaurant and 43 cents comes back into that community. The local economy receives zero cents from Internet purchases. Want to improve the community? Don’t drive to a neighboring city or click to buy it. Think about shopping in Columbus first!

Here is another repeat item – this one from last week. Christmas is a season for giving. Share any loose pocket change or folding money by making a donation in one of those bright red kettles. The Salvation Army has them strategically placed in high volume areas along Highway 45 North and also in East Columbus. Thank you for caring and for sharing.

Christmas is also about children. Want to make a personal impact on special children? Consider attending a Christmas party for the children of “Father’s Child Ministry” at Real Life Church on 419 Wilkins-Wise Road on Saturday starting at 10:00 a.m. Watch as fatherless children open presents and enjoy lunch. It’s important for caring people to provide positive messages to children, especially those in less than a perfect family situation. Share a special hug with these special children to really make this a memorable Christmas. Those wanting to only buy a toy can leave it at the Fitness Factor in the Towne Square Shopping Center at the corner of 18^th Avenue and 5^th Street North, near the US-82 By-Pass.

Christmas is not only about children, but it’s also about those young at heart. Elderly people need love and attention at this time of the year. ComfortKeepers® has a special outreach for those that recently lost a loved one. Think about the loneliness of grandparents that has most of their family living far away. Consider giving the gift of time that provides holiday cheer to seniors. Contact ComfortKeepers® of the Golden Triangle at 888.675.0595. Make time to make a senior adult feel valued and involved.

Want to talk real estate this weekend? Contact me by noon Friday to make a weekend preview appointment.

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7 Ways to Have an Eco-Friendly Christmas

2011-12-15T06:29:00.003-06:00

With a few conscious choices, your merry Christmas can also be an eco-friendly Christmas.

1. Light up with LEDs. LED lights use at least 75% less energy than conventional holiday decorations, according to Energy Star. That saves the average family about $50 on energy bills during the holiday, says Avital Binshtock of the Sierra Club in San Francisco. Or douse the lights and use soy-based or beeswax candles; their emissions are cleaner than those from paraffin candles.

2. Make your own decorations. Save money and keep your kids busy by hand-crafting eco-friendly decor—strings of popcorn or pine cones—instead of buying mass-produced holiday flare.

3. Wrap with stuff you already have. Get creative with reusable shopping bags, magazines, and newspapers instead of using wrapping paper. Even gift bags that recipients can pass on make for a more eco-friendly Christmas, says Brian Clark Howard of The Daily Green.

4. Buy a real tree. Real Christmas trees, wreaths, and garlands are renewable and recyclable, Binshtock says. Real trees mean an annual cost, but that may be a wash if you tend to buy a faux tree several times a decade.

5. Say "no" to glossy paper decorations and wrapping. Shininess and color come from chemicals not easily recycled. Alternative: Decorations or wrapping papers that use soy inks or natural dyes.

6. Package it in cardboard. Plain, corrugated cardboard is good for packaging because it’s easy to recycle. If plastic factors into your holiday plans, look for No. 1 and No. 2 plastics, the easiest to recycle, says Ben Champion, director of sustainability for Kansas State University.

7. Create precious moments that don’t leave a trail of debris.

Do something experiential like taking the family to a museum.

Give a gift certificate or donation to an organization meaningful to the recipient in the receiver’s name. Happy holidays to you: No sales tax.

Buy fair-trade, organic, or locally made products, which are often one-of-a-kind and may not need as much packaging and shipping, Champion says.

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G. M. Filisko wrote copyrighted article appeared on House Logic.com and is used with permission. She is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Bankrate.com, REALTOR Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

What The Internet Does Not Tell Home Buyers

2011-12-14T06:27:00.004-06:00

Today’s real estate buyers rely on the Internet more than ever to find their new home. These buyers also face a small challenge. The Internet does not tell all. Let’s discuss what Internet listings do not tell a buyer.

Internet Listings Disclosure – Every home listed on the internet provides basic information about the property. Most listings include an address, number of bedrooms, bathrooms, square footage, year built, lot size, number of floors, car parking and so forth. This is very objective information. Some listings include room dimensions, source of heating and cooling, appliance information, type of flooring, and other information. Listings normally include property tax information, if the property is in a flood plain or city zoning.

Savvy computer experts can take an address and discover even more information for other sources. They can determine the school district for an opinion on the quality of education offered. They can research community demographics. All of this is objective information.

What Internet Listings Might Not Disclose – Remember that every Internet listing has the same objective – to get a buyer to visit the house. It is very legal and ethical for the listing agent to make the house appear in perfect condition. But is it?

Take for example a master bedroom measuring 15-feet by 15-feet with 12-foot ceilings and a ceiling fan. Sounds perfect! The bedroom fits the furniture for most buyers. Will it? Perhaps a specific buyer has extra tall bedposts with a canopy. Those bedposts could obstruct a ceiling fan. Only a buyer knows the potential placement of furniture and how it would fit into a specific room.

That is why a buyer should personally visit the property before signing a purchase offer. In rare cases, that is not possible. In those rare instances, the buyer should ask a trusted person to become the buyer’s eyes and ears. Who is this trusted person?

In some cases one spouse must act as the eyes and ears for the other. In other cases, that responsibility could fall to a parent, grandparent, child, sibling, or the same relation by marriage. Here is the common dominator.

The trusted person knows the likes and dislikes of every person that eventually will live under that roof. They know personal tastes, preferences, life styles and turn offs. They can provide the insight in the event the real buyer cannot personally preview the property. They can make a determination if a house matches that part of the equation.

Missing Information – There is some information a REALTOR® cannot answer. “Is this a safe neighborhood?” is a question many prospective homebuyers ask. Unless the REALTOR® lives in that neighborhood, he is not an expert.

Visit the local police department with jurisdiction in that neighborhood. Find out exactly the number and nature of response calls to that neighborhood in the recent past. Remember that each 911 call has a different purpose. There could be a crime. There could be a medical emergency. Get authoritative information before making major decisions.

Visit the Neighbors – Get to know the people that live on either side of the house under consideration. Walk directly across the street too. Visit with their next door neighbors too. Think about that for a minute.

Visit with five different people that live in very close proximity to the house under consideration. Those are five independent neighborhood experts. None of those five have a financial stake in the transaction either. Treat their candid opinions as extremely important in any decision making process.

The neighbors can better explain who lives in the neighborhood. There might be a law enforcement official on the same street. There could be a prospective neighbor that has continual visitors. Interact with the new neighbors. It’s even possible the prospective buyer could find out even more information (positive or negative) about the house.

Drive By – If a buyer seriously considers buying a house, drive by it at different times of the day, and on different days of the week. Observe who is walking on the sidewalks, playing in the yards or the street. Again, this calls for a subjective judgment that varies from buyer to buyer. That is why this type of information is not included in any internet listing.

Bottom Line – Real estate information on the internet is just a snapshot. Your REALTOR® can provide additional quantitative information. Buyers wanting subjective questions answered must exercise a certain amount of personal diligence.
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Consumers Have Faith In The Housing Market

2011-12-13T06:29:00.002-06:00

More than four of every five Americans believe that owning a home remains a good investment. How is that for good news? Want even more? That same group believes that homeownership remains one of their proudest accomplishments. That’s not all. More than two of three American renters have enough confidence in the national economy that homeownership still remains a goal.

That is the result from a national survey of 2,500 Americans polled in the early days of August 2011 by the Futures Company. That national survey found that two in five households have changed their economic habits to save money for a future housing need. Two of every three plan to save at least $1,000 in the next six months. Repairing credit is another tough job, but two of five households are doing just that.

Maybe these are not the hard numbers that economists use to forecast the status of the housing market. However, it is refreshing to realize that real people proudly consider the purchase of a home as a major accomplishment in life. REALTORS® help people achieve major goals. Let’s look at another aspect of the survey.

Where Are These Buyers –Let’s put this in very understandable terms so any renter, any seller, or any REALTOR® can understand. The survey said more than two of every three renters have homeownership as a goal. Drive to an apartment complex. There are future home buyers living in those apartments. They want the peace and seclusion that only a single family home offers. Maybe there are compelling reasons they cannot buy now. Does that negate the goal of achieving the American Dream of home ownership?

What Are They Doing Instead of Buying – Many of them are doing the things to make the goal of home ownership a reality. They are reducing their debt. They are saving money for a down payment. They are improving their credit score. Just because they can’t buy today, thank them for taking on the hard work of making financial preparations. Encourage them to continue this strategy to fruition. Remind them that others keep achieving the goal of home ownership. It’s a proud accomplishment.

Home Ownership Increases Wealth – Assume a first time homebuyer sits down at the closing table. He signs a stack of papers to complete the purchase of $100,000 home. When he gets up from that table, he just increased his net wealth by $100,000 (or whatever the sale price of the property). Is that a reason to be proud?

Increasing Property Values – Like with any long term investment, there is always a risk of the investment losing value. That is the current state of the housing market. Prices are lower today than they were two or three years ago. But like in any free-market commodity, the pendulum swings from low to high. Staying in the market longer increases the changes to make money and decreases the changes of losing money. Here is a realistic illustration.

The Proof – An average Columbus, Mississippi house in average condition sold for about $98,000 in 2001 – ten years ago. Since then the seller repaid about a third of the 30-year mortgage. Sound right? A buyer in today’s market would pay about $132,000 for that same house. The seller still owes about $66,000 on that house. After repaying the lender, that seller walks away with $66,000. How is that for an effective use of time? Is there a better illustration of the saying “time is money?”

Who Is Smart – Despite the continual barrage from the national media about a faltering US economy, the downgrade of the US credit rating, dire economic news from Europe, falling stock prices, and stagnant or falling home prices, as always the American public is smarter. They know that this is a great country. They know that they have the same genes as their parents and grandparents. They know that homeownership mattered in the 1950’s, 1960’s, 1970’s, 1980’s, 1980’s, 2000’s and it still matters today. They want part of that dream. They want to buy a house.

Is there any wonder then that today’s renters will do whatever it takes to make that important phone call to their REALTOR® and say, “I have my pre-approval letter! When can we look at houses? I’m ready to buy something!”

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What's A Credit Score?

2011-12-12T06:29:00.005-06:00

Here is a phrase tossed about very loosely for anyone wanting to buy a house. “What’s your credit score?” Exactly what is a credit score? What factors go into determining a credit score? What factors could future credit scores consider? What data does a credit score ignore? Let’s take a very in-depth look at this term – credit score.

What Is It – Very simply stated, a credit score is nothing more than a number that represents the credit worthiness of a person based on a statistical analysis of information in a credit file. Lenders use a credit score for everything from issuing a credit card to setting limits on cell phone service to buying a car. Within the housing industry, landlords and mortgage lenders use a credit score to evaluate the likelihood of a person paying his rent or mortgage payment.

Data Included In A Credit Score – Every time a company sends a bill to a customer, that information updates the credit score. When the customer pays the bill, that information updates the credit score. If the person pays the bill on time, that improves the credit score. Late payments detract from the credit score. A bill paid 90 or more days in arrears has far move negative impact than a bill paid 60 days late. Conversely, paying debts on time means a person is fiscally responsible. People that pay bills on time generally have a credit score exceeding 750.

Credit Score Non-Factors – It is important to understand that a credit score is non-discriminatory. A credit score does not evaluate a person’s ethnicity, gender, age, religion, occupation, salary, location, employer or employment history. None of those have any bearing on a credit score. The only factor considered is the pattern for paying bills.

If a person signed a note for a $1000 at 75 percent interest, the credit score only considers repayment pattern, rather than the amount of the interest. Someone accepting a loan at 75 percent interest really needs financial counseling. Guess what? Participating in financial counseling has zero bearing on a credit score.

Future Factors – Here is a popular misconception. Late child support payments adversely affect the credit rating. That is not now the case. The key word is “now.” The Los Angeles Times reported recently that child support payments will become a new factor in evaluating mortgage applications.

In today’s world, only Experian reports positive rental data. Look for Experian to remove “positive” and report any type of rental data. Late rent payment could make it more difficult to rent.

The Times went on to report that evictions and Payday loans could become future factors.

Maintaining A Good Credit Score – There is no news here. Be sensible and prompt. Pay all bills on time. This has the biggest effect on the credit score. Here is another strategy with maximum impact.

Keep credit card limits to below 30 percent of the limit. As an example, if a credit card has a $1000 limit, keep the unpaid balance below $300. Periodically use each credit card, but make the payments promptly. Closing a credit card account has a negative impact. Keeping it open and active, but with restraint, is one of the best strategies to keep that credit score high.

Regular Check-Up – Each of the three major credit reporting bureaus – Experian, Equifax and TransUnion must provide a free annual credit report to a person, upon request. Consider this strategy.

Space out those annual requests. As an example, request the annual report from one company every January. Request the annual report from another company four months later (every May.) Ask for the final annual report every September. Why do this?

This allows the borrower to refute any erroneous data or derogatory remarks. It’s easy to check that other credit bureaus reported the corrections to the record in a timely manner.

Summary – Think of a credit score in the same terms of blood pressure or heartbeat. There are strategies to improve it and make it even better. Sitting back and doing nothing could be a sign of looming trouble, if left undetected. That is the prefect reason to regularly check a credit score. Be certain that it contains only accurate information so the right score is there when needed – like when achieving the American Dream of homeownership.

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Columbus, MS Has The Christmas Spirit

2011-12-09T06:29:00.004-06:00

The Christmas season is in full swing everywhere, and that includes Columbus, Mississippi. Aside from multiple private events and various seasonal religious events at area churches, this weekend is full of exciting community events too. Let’s take a quick look.

Christmas is a holiday that celebrates a birth. Life Choices Pregnancy Care Center has an open house and prayer walk on Friday starting at 11:00 a.m. at 1204 Second Avenue North – which is behind the Lowndes County Tax Assessor’s office.

Need some shopping time but without the children? Here is an ideal solution. Have the children attend the “Kids Night Out” at the New Hope YMCA on Lake Lowndes Road. Drop off the children (infants to 12-year olds) at 6:00 p.m. but pick them up by 10:00 p.m. This service is available for YMCA members and non-members too.

Tired of Christmas? Want a real change of pace? Friday at 7:00 p.m. is the Powwow Journey’s – A journey through American Indian song and dance. The Feather Dance Company takes the stage of Rent Auditorium on the corner of College and 11st Streets on the campus of Mississippi University for Women. The Mississippi Humanities Council and the Columbus Arts Council are jointly sponsoring this is a free performance.

Enjoy “An Evening of Music and Spoken Word” starting at 7:00 p.m. at Cafe Aromas, 404 Main Street downtown. This is an open mic night featuring local songwriters, musicians and poets. Performers and listeners can also enjoy the exquisite selection of pastries, coffee drinks, and beer.

The closing ceremony for the New Harmonies Exhibit on loan from the Smithsonian is Saturday at 2:00 p.m. Listen to young Columbus musicians bid farewell to the exhibit at the Rosenzweig Arts Center on the corner of Main and Market Streets in the middle of downtown Columbus. Since late October, local residents and visitors flocked to see this once in a life time exhibit that celebrates the roots of American music – from gospel to the blues, from jazz to rock and roll from country to the classics. The gallery closes at 5:00 p.m. Saturday.

Remember cherished Christmas memories from yesterday? Life was simpler. Want to go back? It’s possible. Take the short drive across the Alabama state line to Tabernacle United Methodist Church to revisit those times. The church presents Christmas Memories on Saturday and Sunday starting at 6 p.m. Sing familiar carols, listen to the real story of Christmas, and taste a cup of Brunswick stew. Take the US-82 exit at the state line. Turn left and go north 1 mile to the four-way stop. Turn right and the church is on the right about 2 miles (less than a mile past the state line).

Let’s combine two themes mentioned above – Christmas shopping and Christmas tradition. Christmas is a season for giving. Share any loose pocket change or folding money by making a donation in one of those bright red Salvation Army kettles. The Salvation Army has them strategically placed in high volume areas along Highway 45 North and also in East Columbus. Need knows no season. Thank you for caring and for sharing.

There is one more traditional Christmas event to attend. Perhaps it’s the greatest of all. The annual community presentation of Georg Friedrich Händel’s “Messiah” is Tuesday at Annunciation Catholic Church on the corner of College and 8^th Streets. Performances begin at 6:00 p.m. and 8:00 p.m. Doug Browning conducts the 125-voice choir that draws members from area churches as well as professional musicians.

Pick up free admission tickets at Party and Paper across from the Princess Theater on Market Street or at the Tennessee Williams Welcome Center on Main Street. Additionally, Annunciation Catholic Church and First United Methodist Church on Main Street have admission tickets too. These tickets ensure seating for the desired performance. I have my tickets. This is a truly beautiful venue for one of the oldest and most cherished of all Christmas traditions.

The popular “Sunday At The Bluff” lecture series has the topic of “Interesting Personalities of the Past” this month. Be at the Plymouth Bluff Center located on Old West Point Road near the US-82 West/US-45 South exit on the west bank of the Tenn-Tom. The lecture begins at 2:00 p.m. and it is free.

Want to talk real estate this weekend? Contact me by noon Friday to make a weekend preview appointment.

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5 Holiday Hosting Disasters and How to Avoid Them

2011-12-08T06:29:00.003-06:00

Take a look at the most common things that can go wrong when you have guests and learn how to prevent them.

That’s just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.

Problem: The oven doesn’t heat – For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.

How to avoid: There are any number of reasons a stove can break, but one common cause of disaster is easy to prevent. Don’t self-clean your oven until AFTER the holidays. You risk blowing a fuse or a thermostat, and tracking down an oven technician around the holidays can be tough.

Problem: The kitchen sink clogs – The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.

How to avoid: Fats and cooking oils can solidify in your pipes, so never dispose of them in your kitchen sink.

If you have a garbage disposal, make sure it’s running before anything goes in it, and never feed it any stringy, fibrous, or starchy foods like poultry skins or potato peels.

To fix, don’t rely on chemical drain-clearing products that can harm your pipes. Use a snake instead, available for $15 at your local hardware store. Best to keep one on hand.

Problem: The heat goes out – As the party’s host, you’re supposed to hang guests’ coats—not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.

How to avoid: The key to avoiding freezing your party to a standstill is regular maintenance of your HVAC. Every 90 days, a new one-inch pleated furnace filter should be installed. If you haven’t done it in a while, now’s a good time to replace it.

Also inspect insulation on refrigerant lines that are leading into your house. Replace them if they're missing or damaged.

Problem: The toilet stops up – Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.

How to avoid: Don’t flush anything other than sewage and toilet paper down the toilet. And there’s nothing wrong with putting up a polite note to remind your guests to do the same.

Problem: The fridge doesn’t cool – Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it’s too late, take these simple precautions.

How to avoid: Get a thermometer for your refrigerator to make sure each shelf stays below 40 degrees and you can be aware of any temperature changes.

Also make sure the condenser coils located on the back of the unit or beneath it are free to breathe. Coils blocked from circulating air by cereal boxes atop the fridge, or dirtied by dust or pet hair can prevent a fridge from keeping cool.

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This copyrighted article appeared on House Logic.com and is used with permission.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Recapping November Real Estate Sales For Lowndes County, MS

2011-12-07T06:32:00.001-06:00

It’s that time of the month once again – time to review real estate sales in Lowndes County, Mississippi for the previous month. This includes properties inside the city limits of Columbus. It’s important for both buyers and sellers to know exactly what is happening in this real estate market. This information gives anyone considering a real estate transaction some insight on the relative strength or weakness of the local market.

Before starting, please remember that the data presented is a representation based in whole or in part on information from the Golden Triangle Association Of REALTORS® or its Multiple Listing Service (MLS) predominantly for the period November 1, 2011 through November 30, 2011 but also for previous months. Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Several properties close each month without any involvement with a REALTOR®. These properties include but are not limited to private sales like a For Sale By Owner, builder owned real estate, bank owned real estate, or auctions. Those non-MLS transactions are not included in this summary.

Real estate sales fell significantly in November 2011. Only 19 transactions closed. That is the lowest number of closings for the calendar year, and the lowest since October 2010. As a point of comparison, 30 houses closed last year at this time (November 2010) and also last month (October 2011).

The median house sold for $143,000 or about $64 a square foot. The median house represents an actual sale that is halfway between the house that sold for the most and the one that sold for the least. Protecting the confidentiality of that sale is the reason for omitting additional details. Let’s provide one glimmer of encouragement. The median house that sold in November 2010 sold for about $120,000. Don’t draw the wrong conclusion however. That house sold for about $73 a square foot.

The average house sold in November sold for about $158,000 or $78 a square foot. The average house averages statistics from all sales, and may represent multiple transactions. Here is one more bit of information about the average house. It sold for about 92 percent of the list price. That means buyers wrote offers well below the list price but sellers got the message – negotiate rather than lose a buyer. It took nearly ten months to sell that average house.

Some question the impact that sales at the extreme top of the market or the extreme bottom of the market have on this report. Removing any sale above $300,000 or below $50,000 leaves a $250,000 window. It’s that window where more than 80 percent of the sales take place. Let’s see the impact this month.

The median house moves down to about $133,000 or near $78 a square foot. The average house sold for nearly $144,000 or about $80 a square foot. Again the average house sold for about 93 percent of the list price and took nearly a year for the buyer and seller to reach an agreement.

Another 14 buyers wrote or negotiated an acceptable purchase offer that the seller accepted. Depending on the contract language, it is possible that will be the reportable activity next month at this time.

Unfortunately 19 other sellers could not find a buyer during their listing contract period. Those houses also came off the market in November. That did not stop the 27 homeowners that put their house on the market. There are now more than 350 houses listed with a REALTOR® in Lowndes County. That means there is a 12 month supply in the inventory. What does that mean?

Buyers have a wide variety of houses available. With that much inventory a buyer can find exactly what he wants, yet still pay a competitive price that is fair to both parties. For a seller it means having an effective marketing strategy to lure the buyer into negotiating a fair price for this market.

The information presented above is only a brief synopsis of the entire market in Lowndes County. For an analysis on a specific piece of real estate, contact your REALTOR®.

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Scared Of Buying A Home? Why?

2011-12-06T06:26:00.003-06:00

With housing prices so affordable, why are the numbers of first time homebuyers decreasing? It’s a great question. It’s one that stymies many real estate professionals. Let’s try to determine some of the obstacles facing a first time homebuyer and overcome some of those objections.

Know The Score – Owning a house is not a government entitlement. Owning a home is a privilege enjoyed by anyone living in the United States. Enjoying that privilege means the homeowner must meet certain criteria. One of those is achieving an acceptable credit score. Some might feel that a minimum credit score discriminates against those on a limited income. Consider this analogy.

In football, does the goal line move based on who has the ball? No! The player must weave his way around a number of obstacles. The goal never moves just because a player is faster or slower. The goal stays in the same spot for a lighter or heavier player. The goal line remains constant for a freshman and a fifth-year senior – a rookie and a seasoned veteran.

Why should anyone say that a credit score discriminates? Does the goal line discriminate?

Everyone that plays football wants to score. Winners work hard. They persist. They have a great feeling when they score. It’s the same with achieving a good credit score. Hard work and persistence pay off. Achieve an acceptable credit score.

One third of households have credit scores that are not good enough to qualify for a mortgage. Don’t admit that it is impossible to upgrade a credit score. There are too many specific examples of people that overcame and achieved.

It’s A Job – Steady employment is another key to home ownership. This is a tough economy. The media states the unemployment rate is nearly 9 percent. What does that mean? It means that nine of every ten people have a job.

Keeping a job is work in and of itself. It means being mature and responsible while at work. It means a willingness to learn new facets of the job or new aspects of the company. Good employees never find themselves unemployed. If one job dries up, they work at finding another one.

Many people have parents, grandparents and great grandparents that held one job their entire life. Those days are over. The economy changed. The global economy and technology dictates change. Seldom does anyone work at the same job for an entire career. The norm is losing a job to downsizing, corporate relocation or closing. Use these as an opportunity to find a new career with new challenges and a new income opportunity.

Pay The Piper – Most houses require a down payment. Yes, there are some programs that do not require a down payment. Want a history lesson? It’s not pretty.

Historically a buyer needed to bring a 20 percent down payment to buy a house. Think about a person that bought a house in 1960. They needed a 20 percent down payment to buy a $15,000 house. A $3,000 down payment doesn’t sound like much. But consider that is the equivalent of making an $18,000 down payment today on a $95,000 house.

How did parents or grandparents buy a home making that kind of a down payment without government assistance? The answer is a four-letter word – SAVE. The 1960’s had no credit cards. There was no such thing as a storage locker. The economy grew because people made wise purchases minus the recurring debt. They bought what they needed rather than what they wanted.

It worked then – and still works today. Lenders want financially mature borrowers. Someone that saves money exhibits the characteristics lenders desire. Save a portion of every dollar earned. Taking the saving to invest it in even more profitable savings, such as owning real estate, creates wealth.

Adding It Up – Homeownership remains a major life goal of real Americans. The reason it is a goal is because it’s realistic. Parents and grandparents owned a home. There is no reason for a person to not own a house. Another reason homeownership is a goal is because it’s achievable. It only takes a pattern of repaying debt, maintaining employment, and consistent savings. One word sums that thought – responsibility. That is work, but it is achievable work.

What will it be? Isn’t it time to look inward than toward Washington? Isn’t it time to act responsibly. Isn’t it time to contact your REALTOR®?

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Is $500 A Month For A House Payment Affordable?

2011-12-05T06:29:00.002-06:00

There is no trick. There is no gimmick. There is no bait and switch. There is no catch. The only “there is” – is a 3-bedroom house just waiting for a buyer. Actually there are more than a dozen houses similar houses available. Some of them need no down payment. Others need only a $500 down payment. Interested? Know someone that might be interested? Then read more.

The current interest rate offered by some lenders for an FHA 30-year fixed mortgage is as low as 3.75 percent. That means for a house selling for $85,000, the monthly mortgage payment is about $405. Add taxes and insurance and that total nears $500. What is the rent for a 3-bedroom house or an apartment?

About half of these houses are outside the Columbus city limits. That means they might qualify for a Rural Development mortgage – with no down payment required. There are eligibility standards for both the buyer and the property. A Rural Development Mortgage also includes a fee. Lenders typically roll this fee into the monthly payment. All area lenders have information about a Rural Development Mortgage.

Houses inside the city limits of Columbus do not qualify for a Rural Development Mortgage. That means a borrower needs to make a down payment of about 3.5 percent. That can be a huge obstacle, unless the buyer knows the right questions to ask.

The Mississippi Home Corporation has a Down Payment Assistance Program to help low income buyers make a down payment. That down payment could be $500 or less. Does that cut a huge obstacle down to size? So how does this Down Payment Assistance Program work?

Remember the standard down payment is 3.5 percent of the purchase price. The lender authorizes a mortgage for the remaining 96.5 percent of the purchase price. MHC funds 3 percent of the total purchase price needed for the down payment. That means the buyer must find a way to bring the remaining .5 percent of the down payment to the closing table.

Let’s use a house selling for $85,000 as an example. The typical down payment is $2,975. For most low and middle income buyers, that is a huge hurdle to navigate. That is where Down Payment Assistance comes into play.

MHC loans the buyer $2,550 or 3 percent of the $85,000 purchase price to make the down payment. The buyer funds the remaining $425 of the down payment.

The buyer repays MHC the $2,550 over a ten-year period with 7 percent interest. That adds about $30 a month to the house note. While it does put the monthly payment over $500, that payment is probably below $550. Here is the nice thing about the MHC loan. There is no pre-payment penalty. Let’s explain a huge advantage.

Let’s also talk about that remaining $425. For every real estate purchase, the buyer must provide the seller with a financial show of good faith. The common term is earnest money. Earnest money simply means the buyer is earnest about making the purchase. The buyer receives the earnest money at the closing to do anything he wants.

If the buyer writes a $425 check for earnest money at the time of the purchase offer – that is the .5 percent the buyer needs at the closing. Simple! So how does a buyer find one of these affordable houses?

The first step is talking to your REALTOR® and then a mortgage lender. Why? Making any purchase over $50,000 requires a certain amount of professionalism and diligence. That is why the State of Mississippi requires real estate agents and money lenders to have a license. The State has an obligation to protect the consumer. Isn’t the advice and counsel of a licensed professional superior to that of a friend or relative? Most people that opt to not get professional advice in every facet of a real estate transaction end up making a mistake. Even an honest mistake is still a mistake. Mistakes can cost a consumer hundreds or even thousands of dollars.

It’s not enough to dream about owning a home. Take action. Contact your REALTOR® and ask about affordable housing options.

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It’s The Most Wonderful Weekend Of The Year

2011-12-02T06:44:00.004-06:00

“Tis The Season” for celebrating and visiting with friends and relatives. All of that begins this weekend in Columbus, Mississippi. There are some great events – many of them are absolutely free. Let’s see what is on tap.

Anyone driving through downtown Columbus Friday night might be in for a big surprise. Why are so many people downtown? Is someone giving away something? What is going on? Let’s answer those three questions in order.

Wassail Fest. Yes and Wassail Fest.

The What? What’s a wassail?

From 5:00 p.m. until 8:00 p.m. the downtown merchants will compete with each other in the annual Wassail Fest. Get a ballot and then sample the wassail in participating stores. Visit eight stores and rate the wassail. Besides a prize for the best tasting wassail, shoppers casting ballots have a chance to win more than a $1,000 in door prizes.

There is even more. Join Mayor Robert Smith the grassy lot that adjoins the Tennessee Williams Welcome Center at 6:00 p.m. for the lighting of the Columbus Christmas Tree. The children’s choir of the First United Methodist Church begins the caroling at 5:30 p.m. In other parts of the downtown business district, singers and musicians will perform.

Many of the participating merchants also offer great promotions for the Wassail Fest. This might be the time to find that unique gift for those special people in your life. But let’s talk about something special for that most special someone – you.

What better way to tell the world “Merry Christmas” than with a Christmas wreath? The Columbus Arts Council Guild and the Young LINKed Professionals have their annual Christmas wreath auction on Friday at the Rosenzweig Arts Center. Make a bid on one of these wreaths designed and decorated by local artists or businesses. Proceeds benefit a local charity.

Santa and Miz Claus will be in the RAC from 6:00 p.m. until 7:00 p.m. greeting the children. While enjoying the RAC’s wassail, guide the family through the New Harmonies exhibit, which is on loan from the Smithsonian. Learn about the roots of American music. This exhibit ends in about a week.

There is another downtown event, just not part of the Wassail Fest. Visit the Interactive Bethlehem Village sponsored by First Baptist Church on Friday, Saturday or Sunday starting at 6:00 p.m. The Village is in the parking lot across the street from the church and the Columbus-Lowndes Public Library on the corner of Seventh Street South and Third Avenue.

Speaking about the library, it’s time for a visit to see their annual Festival of Trees. Enjoy over 20 trees donated and decorated by local organizations, clubs, schools, businesses and individuals. Need some special encouragement? Click this link but be sure to have the speakers turned up. The Library opens at 9:00 a.m. most mornings but is closed Sunday’s.

“A Christmas Pudding” is a free production by the Mississippi University for Women Department of Music and Theater. The performance begins at 7:30 p.m. in the Cromwell Theatre on the corner of 10^th Street South and 6^th Avenue on campus.

“A Christmas Pudding” is a Christmas celebration told in songs, stories, poems and tales by Dickens, Mark Twain, Shakespeare, Emily Dickinson, Shaw, Longfellow, St. Luke and many others collected with a host of familiar and some not-so familiar carols and holiday songs. This piece provides a perfect evening to warm hearts, stir memories and give laughter during the holiday season.

Drive to New Hope on Saturday for the annual Holiday Arts and Crafts Bazaar. It starts at 9:00 a.m. inside the Pavilion at Lake Lowndes State Park. Find hundreds of unique items on sale.

The Frank P. Phillips YMCA in downtown Columbus has two special guests Saturday starting at 9:00 a.m. Enjoy “Snacks with Santa and Miz Clause.” Bring children 12 years and under to pose for pictures (bring a camera). They can give that Jolly Ole Elf letters personally at that time. Children can decorate cookies, have their face painted, “pin the nose” on Rudolph and create a take-home ornament (first 100 kids). The Franklin Academy Glee Club performs traditional Christmas Carols.

Saturday night is the annual Caledonia Christmas Parade. The parade starts at 6:00 p.m. with the line-up and judging at Ola J. Pickett Park beginning at 4:30 p.m. After the parade, stick around for the Block Party featuring “Bubba and the Boxcutters.” Hot chocolate and hot apple cider is available to keep you warm during the Block Party!

“The Twelve Days of Christmas” is the theme for Monday’s Columbus Christmas Parade along Main, College and Market Streets in downtown Columbus. The floats and marching units begin to line-up starting at 5:00 p.m. at the Farmers Market. The parade begins at 7:00 p.m. This is the largest parade in Columbus in terms of number of units, parade route and parade viewers.

One more thing, but this does not involve Christmas or a community event. Still it’s big. Congratulations to the East Mississippi Community College Lions football team. They play for the National Junior College Championship on Saturday afternoon in Yuma, Arizona. A local television station will broadcast the game live. Five players and 25 band members hail from Lowndes County.

Need help with a real estate matter? To schedule weekend previews contact me by noon Friday.

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LED Holiday Lights: 6 Need-to-Know Tips

2011-12-01T06:44:00.001-06:00

LED holiday lights vs. old-fashioned bulbs: 6 tips to help you decide which is right for you.

1. LED holiday lights save you money. LED lights use at least 90% less energy than traditional holiday lights, according to the U.S. government’s Energy Star program.

That results in a $50 energy savings for the average family during the holidays, says Avital Binshtock of the Sierra Club in San Francisco.

Put it into perspective: The amount of electricity consumed by one 7-watt incandescent bulb could power 140 LEDs—enough to light two 24-foot strings, says Energy Star.

2. But LED lights typically cost more than old-fashioned holiday lights.

GE 100-bulb string of Energy Star-certified LED white lights: $18.97 at Lowe’s

GE 100-bulb string of conventional white lights: $8.97

But shop around because a growing number of retailers are offering sales on LED holiday lights and, if you can’t find a sale before the holidays, you can certainly find one after. Plus, prices will surely go down as these lights gain traction.

3. LED holiday lights last and last. LED bulbs can keep your season bright for as long as 100,000 hours, says Cathy Choi, president of Moonachie, N.J.-based Bulbrite, which manufactures LED and regular bulbs. That’s substantially longer than the life of your old holiday light strings.

4. You can string a BIG strand of LED lights. Safety wise, you shouldn’t connect more than three traditional light strings, but you can connect up to 87 LED holiday light strings, totaling a whopping 1,500 feet, Choi says. So blow your neighbor's display away by cocooning your house in lights:

You won’t have to buy as many extension cords.

You can take your holiday lighting display further away from the outlet.

5. LED lights reduce the risk of fire. They stay cooler than incandescent bulbs, according to Energy Star.

6. How about that hue? Some people stick with their old lights because they don’t like the brighter hue that white LED holiday lights emit. But Choi says manufacturers now offer a “warm white” bulb that more closely mimics the glow of an incandescent light. Be sure to read the label to choose a bright or warm white and to ensure what you’re purchasing is Energy Star-certified.

Colored and color-changing LED holiday lights are more vibrant than conventional lights, making your display easier to see from the street, Choi says.

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G. M. Filisko wrote this copyrighted article that appeared on House Logic.com and is used with permission. She is an attorney and award-winning writer who has been involved in insurance litigation. A frequent contributor to many national publications including Bankrate.com, REALTOR Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Rent vs. Buy – A Side by Side Comparison

2011-11-30T06:44:00.001-06:00

The housing market has conditions ripe for a perfect storm. That simply means the combination of low mortgage interest rates, abundant supply of houses and very motivated sellers make it the perfect time to stop renting and buy a house. Let’s provide one example in an actual comparison of rent versus buying a house.

A property owner wants to sell his house. Unfortunately he cannot find a buyer. He decided to rent the house for about $1,000 a month. The $1,000 rent is a fair price for a 3-bedroom 2-bath house that is in move-in ready condition. The house is on a cul-de-sac of a great subdivision. It’s located less than 10 minutes from the main Columbus shopping and restaurant district.

Say someone signed a one-year lease for $1,000 per month, plus paid the customary deposit of another month’s rent. Expect next year the landlord wants another one-year lease but increase the rent to $1,030 a month. Why? That is the average annual rent increase in the US. The same increase applies for 2014. Now the rent increases to $1060.

If a buyer stepped forward today and paid the owner the full list price, the total monthly mortgage payment would be less than $800, and remain at or very near that amount for the next 30 years.

Let’s just think about that for a minute. A tenant would write a $1,000 check to the landlord each month in 2012. Then he’d write the landlord a $1,030 check each month in 2013 and a $1060 check each month for rent in 2014.

Meanwhile, if a person bought the exact same house – not a comparable one but the same house – that buyer would write an $800 check each month to the bank to cover the principle, the interest, the taxes and the insurance. That buyer could then spend the remaining $200, $230 and $260 any way they desired.

They could save that money. They could invest it in a retirement fund. They could donate it to a favorite charity. They could eat in a restaurant more often. They could buy a newer car. They could take an extra vacation. They could do any combination.

This is just one example. There are plenty of others and in every price-point. There are similar deals in Caledonia, in New Hope, in North Columbus, in East Columbus. Why spend $500 to $1,500 for rent, when it’s possible to buy the exact same house for $200 to $400 less each month.

So, is renting affordable? Does owning a home make financial sense?

Do this. It’s really very simple. Visit with the mortgage originator at any local bank. Make an appointment. Bring the last two years of income tax returns, four recent pay stubs, and the most recent two bank statements. Those are the standard mortgage pre-approval documents.

Why visit with a local lender? The answer is simple. For most people, buying a house is their largest capital purchase and takes the longest time to pay for it. Doesn’t it make sense to walk into a person’s office, shake their hand, and look them in the eye? Doesn’t it make sense to be able to interact with them? Doesn’t it make sense to study their body language – and for them to study yours? This is especially true when asking important questions about the rates and terms of the loan.

The internet allows people to shop anonymously. That is fine for small purchases. But buying a house is major step in life. Unlike other items, there is no “money back guarantee if dissatisfied” with a real estate transaction. That’s why it’s important to not make any mistakes. Remember that even an honest mistake is still a mistake.

Hire a team of professionals. This reduces the chance of making a mistake, including paying too much. That team initially includes a mortgage lender and a REALTOR®. Your REALTOR® can recommend expanding that team for other professionals like a home inspector, a surveyor, a contractor, a closing attorney, and others.

Your REALTOR® can advise if it is better to rent or buy. If the best decision is to rent – fine. If it’s to buy, then why delay that decision.

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Reasons To Buy A Home

2011-11-29T06:44:00.003-06:00

Yesterday’s blog encouraged prospective home buyers to act quickly to complete the purchase by the end of the year. But why should a person buy a home? Let’s review some of the facts.

Renting Wastes Money – What does it cost to rent a house or an apartment each month? Does $750 a month sound reasonable? Consider what that $750 buys. Then compare that a mortgage payment. Here is an example.

Access the visual tour for 717 North Street in East Columbus. This brick house has 3-bedrooms, 3-baths, a fenced back yard and plenty of other amenities. It’s updated and in move-in ready condition. The total monthly payment is in the neighborhood of $600-$650. Compare that to living in a small house or an apartment.

Tax Advantages – There are tax advantages to property owners. Both federal and Mississippi tax laws favor homeowners come tax time. Mississippi taxes property owners based on 15 percent of the value of that piece of real estate. There is an exception. A person can claim one piece of real estate in the state as their homestead, and get a property tax reduction. Want an example?

Let’s take a generic house within the city limits of Columbus. The county values this house at 100,000. The annual property tax is $2,158. If the owner uses it as rental property, he adds $180 a month to the rent, just to pay the taxes. Yet, if the exact same house qualified for a homestead – that is the property owner used the house as his principle residence, the taxes drop to $1140 a year or about $95 a month.

Then there is the income tax advantage. When the government instituted the federal income tax nearly 100 years ago, they allowed a homeowner to deduct the mortgage interest on that home. Again, let’s use a generic home with a $100,000 mortgage.

In the first year, that homeowner can claim more than a $3,500 tax exemption. Compute last year’s federal income taxes by taking just that deduction! Actually property owners have even more tax advantages.

Save Even More Money – Ever add up the cost of taking clothes to the Laundromat? Ever compute the wasted time spent there waiting for the clothes to finish? And what about scheduling those trips on nasty weather days? Isn’t it easier to do the laundry from the comfort of your own home? What about washing the car? But let’s stop the nickel and dime savings. Let’s talk about saving real dollars.

The New York Times reported in the spring that the average renter sees a 3 percent annual increase in rent. Let’s say that this year a renter pays $750 a month. Expect to see that rent increase about $25 in 2012 and another $25 in 2013 for the same house or apartment. A fixed rate mortgage payment remains the same.

Future Sale – A major objection to buying a house today is that it might not fit future needs. When that happens, there is a simple solution – sell it. Let’s provide a real example.

A newly married family purchased a 3-bedroom 2-bath house in New Hope in 1998 (13 years ago). The house eventually got too small for the family, as the children grew older. They sold that house recently for nearly twice the 1998 purchase price.

There is more to the story. The new buyer wanted to buy a move-in ready home. He did. The new buyer wanted a bargain. He got one – priced below the fair market value. The new buyer wanted neighborhood stability and a great school district.

As for the seller, they too have a great story. They are enjoying a new home with plenty of space. Their profit from the sale of that first home enabled them to make a sizeable down payment. That kept their monthly payment within 15 percent of their monthly payment on that first home. Everyone came out a winner.

Time Waits For No One – Isn’t it time to take action? It’s possible to complete a real estate purchase by the end of the year, but only for those willing to act immediately. Contact your REALTOR® now to start the process.

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Buying A Home Before New Year? - Start Today!

2011-11-28T06:44:00.004-06:00

Time is slowly running out for anyone wanting to purchase a home by the end of the year. It takes about 30 days to complete a home purchase under ideal conditions. Let’s quickly recap a major hurdle and that is getting mortgage pre-approval.

Credit Score – Most lenders require a credit score above 620 before gathering additional mortgage pre-approval documentation. Let’s quickly explain the 620 minimum credit score. There are three major credit reporting agencies – Equifax, Experian and TransUnion. Each computes a credit score independent of the other. That is the reason for the three credit scores. Lenders use only the middle score. They do not consider the highest or the lowest. They do not average the scores either.

When more than one borrower makes a mortgage application (example a husband and wife), the lender requests credit scores for all the borrowers. However, they use the credit score for the borrower with the lowest credit score.

As an example, a borrower has a credit score of 700, 690 and 680; this borrower has a 690 credit score. If this borrower’s spouse has a credit score of 650, 640 and 630 the lender views the application with a 640 credit score. Now this is important.

If a married couple applies for a mortgage but only one spouse has an acceptable credit score, then the lender can only consider the income from the borrower with the acceptable credit score.

There is one other important factor considered in this phase. A borrower with an acceptable credit score but with either a bankruptcy or foreclosure in the recent past might become ineligible to obtain a mortgage.

Document Income and Debt – With a qualifying credit score in-hand the borrower now takes the next step toward pre-approval. The borrower provides documentation to validate income and debt. This normally includes providing at least the 2009 and 2010 federal and state income tax returns with all attachments. Documentation also includes all bank account statements from the last two accounting periods. Provide statements for any recurring debt such as automobile loans, student loans, credit or charge cards, and so forth. Lenders also want to see proof of income, with pay stubs being a highly recognized form of documentation. Any court orders for payment or receipt of child support, alimony or other type of judgment become a decision making document.

Income to Debt Ratio – This is a fairly easy pre-approval test for anyone. Most lenders want a 29/41 ratio. So what is that? The project house payment cannot exceed 29 percent of the monthly income. The total monthly recurring debt, including the house payment, cannot exceed 41 percent of the monthly income. Here is an example.

Let’s assume a borrower has a $36,000 annual income. Remember that a borrower can be either one or more persons. This household has a monthly income of $3000 ($36,000 divided by 12 months). The total mortgage payment cannot exceed $870 (or 29 percent of $3,000). The total household debt, including the $870 house payment cannot exceed $1230 (or 41 percent of the $3,000). That means the borrower’s recurring debt from previous loans cannot exceed $360, in this example.

Mortgage Options – Do not consider a home purchase unless a borrower has some money saved for incidental expenses. These include making a down payment, paying closing costs, and expenses associated with moving.

There are some mortgages available for borrowers wanting to finance 100 percent or more of the purchase price. A lender or your REALTOR® can provide information about those restrictions.

All purchase offers require the buyer to provide the seller (or his designated representative) with earnest money. Earnest money is a financial show of good faith that the buyer is earnest about making the purchase. The amount of earnest money is one of the purchase offer negotiation points. There is no customary minimum or maximum amount.

Pre-Approval Letter – This is a letter from the lender stating the borrower has the financial capability to obtain a mortgage at or below a specific dollar amount. The pre-approval letter contains an expiration date. This letter strengthens any purchase offer, because the seller knows the buyer has the money. Now a seller might become more motivated to negotiate. Failing to negotiate with a pre-approved buyer could mean the buyer selects a competing house with a motivated seller.

The best negotiator for a buyer is a REALTOR®. That is because the buyer’s REALTOR® has many facts available and the skill to present them logically and convincingly to the seller.

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Black Friday Weekend in Columbus, MS

2011-11-25T06:44:00.003-06:00

We’ll shorten the community events this “Black Friday” in part because, like in most places, shopping takes priority over most entertainment events in Columbus, Mississippi. That does not mean there are not important things for visitors to Columbus enjoy this weekend.

The Rosenzweig Arts Center on the corner of Main and Market Streets in the heart of downtown Columbus is open. What does that mean? The New Harmonies exhibit, on loan from the Smithsonian, is just waiting for local people to stop by and learn about the roots of American music and hear the story of freedom. Part of that story happens Friday at 7:00 p.m. in the RAC’s Omnova Theater with “The Road to Bluegrass” featuring Jim Brock, an alum of the world famous “Grand Ole Opry.” Joining Jim is Larry Wallace.

It seems that part of the Thanksgiving holiday consists of cranking up the car and heading to places like Tupelo, Tuscaloosa, Meridian, Jackson, Birmingham or Memphis to shop. Taking an out of town day trip is fun. But also think about this.

For every dollar spent at a local independent merchant, 68¢ finds its way back into the local economy. Spend that same dollar in a national chain or franchised store and 43¢ still comes back home. Which community do you choose to strengthen? Which community do you choose to create jobs? Think about shopping in Columbus – first!

Here is one more economic fact to ponder. Cyber Monday is a marketing term for the Monday following Black Friday and created by companies to persuade people to shop online. Columbus reaps $0.00 from those on-line transactions.

There are plenty of locally owned stores, restaurants and nightspots in downtown Columbus and in East Columbus or along Highway 45 North. Instead of just passing those businesses, take a minute. Pull into a parking space. Discover Columbus!

Saturday is “Small Business Saturday” and in honor of that, American Express cardholders receive a $25 statement credit when they register and shop at a local merchant and use that card to make a purchase. There are several downtown merchants that participate in this event.

Interested in participating in a contest that requires no entry fee and no entry form? The Town of Caledonia encourages all residents to decorate their homes for the Christmas season. Judging takes place in the middle of next week. Use the weekend to decorate and get in the Christmas spirit.

Need help with a real estate matter? Schedule weekend previews by contacting me by noon Friday.

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Tips on How To Prepare Your Home for Holiday Guests

2011-11-24T06:44:00.000-06:00

Is your home ready for holiday visits from friends and family? Here’s how to prepare for the invasion.

I'm lucky and have a guest suite always ready for holiday guests. But even with a dedicated space, preparing my home for the annual onslaught of friends and family takes time and forethought.

Some preparations for holiday guests take only a few minutes; some take a lot longer. My advice: Start preparing your home for the holidays now.

Prioritize – The day before guests arrive is no time to pull apart junk drawers and clean out linen closets. Declutter guest rooms and public areas — foyer, kitchen, living room, den, and dining room. Remove anything unnecessary from countertops, coffee tables, and ottomans; if it’s out of sight, keep it out of mind, for now.

If you run short of time, bag up the clutter and store it in car trunks, basements, and out-of-the-way closets. Sort and arrange after your guests depart.

Safety-Light the way – Even though you can navigate your home blindfolded, your guests can’t. Make sure outside lights are working so they don’t trip on the way to your door. Put motion-activated night lights in hallways, bathrooms, and bedrooms to ensure safe passage after the sun sets.

Safety-Child proofing – Ask parents to bring hardware that keeps their small ones safe, such as baby gates and cabinet locks. Transfer toxic cleaners and medicines from base to wall cabinets. Hide matches and lighters.

Safety-Fire prevention – If you didn’t freshen smoke detector batteries when you switched the clocks to Daylight Savings Time, change them now. After your guests arrive, run a quick fire drill: Make sure they can locate exits and fire extinguishers, and that they know how to open windows and doors.

Entryway upgrades – Your home’s foyer is the first place guests see, so make a good first impression.

Upgrade exterior entry doors or give old doors a new coat of paint. Polish and tighten door hardware, and oil hinges to prevent squeaks.

Remove scratches from hardwood floors, stairs, and wood railings. Place a small rug or welcome mat at the entrance to protect floors from mud and snow.

Clear out shoes, umbrellas, and other clutter.

Add extra hooks to walls so guests can hang coats and hats.

Add a storage bench where guests can remove boots and shoes.

Kitchen prep – Your kitchen is command central during the holidays, so make sure it’s ready for guests and extra helpers.

To increase storage, install a pot rack to clear cooking items off countertops and ranges.

Move your coffee station into a family room so guests don’t crowd the kitchen when you’re trying to fix meals.

If you like to visit while you’re cooking, place extra stools and chairs around the perimeter of your kitchen so guests can set a spell.

Sleeping arrangements – If you’ve got a guest room, replace the ceiling fixture with a ceiling fan and light combo, which helps guests customize their room temperature without fiddling with the thermostat for the entire house.

To carve sleeping space out of public areas, buy a folding screen or rolling bookcase, which will provide privacy for sleepers. Fold or roll it away in the morning.

Bathroom storage – Bring toilet paper, towels, and toiletries out of hiding, and place them on open shelves so guests can find them easily.

If you don’t have enough wall space for shelves, place these items in open baskets around the bathroom.

Also, outfit each tub with a bath mat (to avoid falls) and each toilet with a plunger (to avoid embarrassment).

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Lisa Kaplan Gordon wrote this copyrighted article that appeared on House Logic.com and is used with permission. She is a HouseLogic managing editor and builder.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Gobble Till You Wobble

2011-11-23T06:44:00.007-06:00

May your stuffing be tasty
May your turkey be plump
May your potatoes 'n gravy
Have nary a lump

May your yams be delicious
May your pies take the prize
May your thanksgiving dinner
Stay off of your thighs

I hope that everyone enjoys this great American holiday. Before doing anything else, please read what President Washington and the First Congress had on their mind for a Thanksgiving celebration, but excuse the typograpical errors contained in that original document.

Psalm 107:8
Let them give thanks to the Lord for His unfailing love and His wonderful deeds for mankind.
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Andy Kalinowski is a REALTOR® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com. He is also available for web video chat.

Shop Till You Drop

2011-11-22T06:44:00.002-06:00

Shop till you drop! That is a popular slogan for Black Friday, the day after Thanksgiving. That is a popular slogan for the Christmas holiday season. It is also a slogan that most prospective homebuyers fail to observe when making the largest capital purchase of a lifetime. Why?

Think about this for a minute. The average homebuyer spends about three months surfing Internet real estate websites looking at pictures of houses and researching neighborhoods. Then that average homebuyers picks up the phone to contact a REALTOR® of one of the listed properties.

The prospective buyer gives the REALTOR® a list of eight to ten houses to preview. That buyer does not want to make a mistake. Unfortunately they already did.

Shop For A REALTOR® - In every real estate transaction there are two people – the buyer and the seller. If the buyer sees a house with a real estate company sign in the front yard, that seller has a real estate agent working in his behalf. That agent owes his seller client fiduciary responsibilities, one of which is loyalty.

A REALTOR® can legally and ethically represent a buyer and a seller in the same transaction. It’s very common too. Some buyers struggle with understanding this situation. If so, find another REALTOR®. Only in a very few instances does the seller insist in writing that the buyer use his REALTOR®.

Don’t be afraid to interview a REALTOR® about his experience and qualifications. Ask for references. Ask those references about the agent’s negotiating skills. Accredited Buyer’s Representative (ABR®) completed extensive class work, continuing education, passed a written examination and has practical experience representing only the buyer in a transaction. Many times qualifications trump common characteristics shared by the buyer and the REALTOR® like age, ethnicity or common interests.

The buyer needs to remember the purpose is not to find a friend but to hire the best person available for advice in completing a major financial transaction. A REALTOR® can also approach a seller not represented by a REALTOR® (for sale by owner).

Shop For A Lender – Once again, too many prospective buyers do not compare and contrast different mortgage lenders. It’s more than just comparing interest rates. There are different types of mortgage loans. Compare the terms (or one-time expenses) associated with applying for a mortgage. Processing time is a key variable, especially if the buyer has a deadline to complete the purchase. Does this particular type of mortgage require a down payment or a user-fee (sometimes called a funding fee)? What is the difference in rates depending on the amount of down payment? Can an origination fee reduce the overall cost? What about mortgage insurance in the event of a default? Ask about what happens to the mortgage after the closing. Some lenders sell the mortgage in the secondary market to large banks. Those lenders are not around if trouble occurs in the future. Weigh all those options carefully.

It helps to start with a visit to the mortgage department at the borrower’s principle bank. Visit the competing banks in that community. It’s okay to let each know they are competing with one another. That is not an insult. It is comparison shopping. Ask for written estimates or better still a Good Faith Estimate.

Here is something most mortgage shoppers overlook. To the credit reporting agencies, multiple mortgage lenders requesting a credit score within 15 days of each other have zero impact on a credit score. The credit agencies realize the borrower is only making a comparison, not buying multiple houses.

Shop For Insurance Too – It’s not enough to shop for the best house at the best price from the best agent and have it financed by the best mortgage company. Extend the shopping binge for property insurance. That is another component to the monthly house payment.

Some insurance agents represent multiple companies. Other agents represent a single insurance provider. Different companies have differing policies. This makes a true “apples to apples” comparison difficult. Get all estimates or quotes in writing before committing to one company or agent. Take those estimates to a trusted decision maker for advice, if necessary.

Your lender and your REALTOR® can be that trusted decision maker. It can also be a relative, or someone else with a long standing personal relationship.

The best advice for the home buyer is to comparison shop every phase of a real estate transaction.

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Thinking About Buying A Home - Read This First

2011-11-21T06:44:00.004-06:00

There are over 350 houses listed for sale in the Columbus, Mississippi area. For a buyer, that means a very wide selection of inventory. It also means low monthly payments because mortgage interest rates are at or below 4 percent – a record. That is putting the cart before the horse. There are a few other steps anyone thinking about buying a home needs to contemplate.

Is It Better To Rent – This is a serious question. Anyone that anticipates living in the community for two years or less should make homeownership a non-issue. It is not a sound financial decision. That is because there are one-time costs involved with owning a home. Prorating one-time purchase expenses over one or two years rather than five or six years might mean the difference between taking a loss or realizing a profit at the sale of a house. Consider what is the best choice based on the anticipated stay in the community.

Is Money Available – Contrary to popular opinion, mortgage lenders have plenty of money for qualified buyers. The problem is that many young people get themselves in financial difficulty. They got that way because they bought things they didn’t need, with money they didn’t have, to impress people they don’t necessarily like. Regardless, it is easier to get into debt than out of it.

Mortgage lenders have money for responsible borrowers. If a person has an unacceptable credit score, do the smart thing. Talk to a mortgage lender that provides financial advice on credit repair. There are ways to improve a credit score quickly. Follow that advice. Quick does not imply overnight. Quick implies making smart payments that improve a credit score, reduce the amount of debt and bring the income versus debt ratios into an acceptable range with minimal delay.

Examine Housing Needs – This is a lot more than saying, “I need three bedrooms and two baths.” Think about present and future needs. Consider the size of the house in terms of square footage. Will everyone have room for their possessions? Remember that heating and cooling bills too.

What about the floor plan? Is it better to have a one-floor or a two-floor house? Will a split floor plan work or is it better if all of the bedrooms are in the same end of the house?

What features are nice to have? What features are imperative? Features can include a number of different things inside the house, outside the house, or external from the property. Is gas or electric the preferred heating method? Do the cars need covered parking? How many cars are there in the family? Is subdivision living preferred to maintaining an acre or more lot? How near to work, school, church, or relatives does the house need to be? Then prioritize that list with the most important factors to the top.

Preview Affordable Houses – Most real estate buyers have the same characteristics. They initially look and inquire about houses well above their price point. When they realize the cost, they go too far in the other direction. They actually end up buying something priced in between.

Even before looking at houses on the internet, a potential home buyer should visit with a mortgage lender. Get a good idea on the cost limitations. Then watch the local media for any open houses within that price point. Visiting several open houses gives the potential buyer a chance to see different houses in different neighborhoods. It is invaluable to know what features certain houses in certain price points have. It becomes confusing and disillusioning when a buyer in a lower price point demands features found in higher priced houses. Limit open-house previews to the desired sale price only. This keeps expectations realistic.

Do The Homework – It starts with knowing if purchasing a house is the best option. Getting the financial house in order is imperative if buying is the best option. Knowing the property features and begin realistic helps make the purchase process smoother. Then take it to the next level. Find a REALTOR® that specializes in representing buyers. That REALTOR® probably knows the best mortgage lenders, inspectors, surveyors, contractors, attorneys, home warranties and anyone else involved in the transaction.

Home ownership matters – Talk to a professional – your REALTOR®.

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Plenty of Activity In Your Favorite Home Town This Weekend

2011-11-18T06:44:00.001-06:00

Friday is an important day for this real estate blog. That’s because we look at real estate from a different perspective. People that want to buy a house here also buy part of the Columbus, Mississippi community. Let’s see what their new community offers this weekend.

How about starting with recognizing a real achievement? Friday at 1:30 p.m. in the middle of downtown Caledonia is the Star Parade. This parade recognizes the academic achievements of the Caledonia Elementary School students and their “Star” school status for the second consecutive year.

The YMCA has their annual active older adult Thanksgiving Potluck dinner on Friday starting at 11:30 a.m. at the Frank P. Phillips YMCA on the corner of Main and Sixth streets downtown. Bring a favorite side dish or dessert. Herman will bring his famous fried and smoked turkeys!

There may be only one place better to live than Columbus – and that’s Mayberry. This weekend the two meet. The Frank P. Phillips YMCA presents their fall play, “A Mayberry Christmas” at 7:00 p.m. on Friday and Saturday. Visit with Andy, Barney, Aunt Bee, Opie and the whole gang for good-natured, down-home humor at the Rent Auditorium on the corner of College and 11^th Streets on the Mississippi University for Women Campus.

Sunrise Saturday is a day many circled on the calendar. It’s the beginning of deer hunting season. Area sportsman will track into the woods in search of the big buck. For the newcomer, there is a tremendous amount of public hunting land, especially near the Tenn-Tom Waterway. Contact the Army Corps of Engineers for permits.

The Holiday Farmers Market opens at 7:00 a.m. Saturday. This is a showcase of the best in local art and local produce. There is even live music and activities for the children. Join friends and neighbors at the Hitching Lot on the corner of Second Avenue North and Second Street, just a few blocks west of the Courthouse.

Audubon Cove at 506 Holly Hills Road in North Columbus has their annual community garage sale starting at 7:00 a.m. Saturday. Multiple families participate in this huge event. There is also free coffee and donuts, while they last.

The Columbus Police Department has a gun safety class starting at 8:00 a.m. Saturday at the Police Firing Range on MLK, just south of Main Street. This class is free for any female over the age of 21 and intended to prevent accidental injury, death or damage relating to gun use. Bring your guns, ammunition, and eye protection to the class. Sergeant Grant (662.244.3530) has more information.

The first annual UPS-Mitchell Automotive Tombigbee Riverwalk Fall Festival 5K Run and Walk is Saturday at Riverwalk Park on the west end of Main Street downtown. Check in begins at 8:15 a.m. with the 5K race starting at 9:00 a.m. There will be live entertainment, food, face painting, Jumping "G's", slides and more!

The Rosenzweig Arts Center on the corner of Main and Market Streets in the heart of downtown Columbus has two events this weekend. Saturday at 10:00 a.m. the RAC hosts a Cooking Class for Kids. Learn how to make simple snacks without using the oven. Then at 7:00 p.m. Saturday in the RAC’s Omnova Theater is the “Happy Flower Radio Hour,” an old time country and western hour. The New Harmonies exhibit remains on loan from the Smithsonian until December 10^th in the RAC’s main exhibit hall Tuesday through Saturday from 9:00 a.m. until 5:00 p.m. It’s free too.

The District 5 Volunteer Fire Department has their annual benefit rib sale on Saturday at the Elm Lake Golf Course parking lot on Taylor-Thurston Road near the Golden Triangle Regional Airport. Pre-ordered ribs are ready to pick up between 4:00 p.m. and 6:00 p.m.

Forget that Sunday afternoon nap. There are two great activities just west of Columbus.

Discover “The Untold Story: The Tennessee-Tombigbee Waterway Wildlife Mitigation Program” at the popular Sunday at the Bluff series. The lecture begins at 2:00 p.m. at the Plymouth Bluff Center, on Old West Point Road, near the US-45 exit on US-82 West.

The dirt track racing season concludes for the year Sunday at the Magnolia Motor Speedway south of US-82 at the Macon/Meridian exit, west of the Tenn-Tom River. The NeSmith Dirt Car Model Series battle for 40 laps to win the $2,000 prize. The Kajun Mini Stocks race for a $750 prize. There is also a complete program for Super Late Models and Street Stocks at “The South’s Premier Dirt Track.” The grandstands open at noon for the 2:30 p.m. race.

Need help with a real estate matter this weekend? Arrange for Saturday or Sunday previews by contacting me before noon Friday.

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Show Your Home Pride: 7 Home Improvement Projects for $1,000 (or Less)

2011-11-17T06:44:00.001-06:00

Americans still think buying a home is one of the best decisions they’ve ever made. Here are some ways to increase your home’s value and comfort for less than $1,000.

We knew reports of the death of American home ownership were greatly exaggerated (nod to Mark Twain), and now we’ve got the numbers to prove it.

A just-released survey by the Meredith Corp., which publishes Better Homes and Gardens magazine, says the vast majority of people polled believe owning a home is a smart financial move and a source of pride.

Here are some results of the 2,500 people surveyed online:

86% of home owners still feel owning a home is a good investment.

85% feel "owning a home is one of their proudest accomplishments."

69% of Americans who don’t currently own a home agree with the statement, "No matter what happens in the U.S. housing market, owning a home is still an important goal in my life."

68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.

A thousand bucks may not seem like a lot, but it goes long way toward improving the value and comfort of your home. Here are some projects we recommend:

1. Add a new entry door. Spruce up your curb appeal and save energy by upgrading your exterior door. Steel doors, which can mimic many types of wood, typically run for $400 at big-box stores and offer the strongest barrier against intruders.

2. Get organized. Decluttering and maximizing storage space are inexpensive ways to transform a home. Add space to kids’ rooms by installing platform or bunk beds ($400-$600); neaten piles of shoes with shoe organizers ($20), which can do double duty as catch-all organizers in family room closets and kitchen pantries; extend bookshelves to the ceiling, creating storage in otherwise dead space.

3. Save with a programmable thermostat. Switching from a manual to a programmable thermostat (less than $500) can save you up to $180 a year in energy costs. The latest models offer remote programming via the Internet.

4. Replace cabinet hardware. If you’ve got traditional knobs and pulls, try contemporary; change from staid to whimsical. Big-box retailers often have huge selections for budget prices. (10-pack for $20).

5. Update bathroom flooring. Give bathrooms a quick facelift by replacing old tile with vinyl flooring or ceramic tile, which can cost as little as $3 per square foot for material and installation.

6. Create luxury with a shower panel. Turn you bathroom into a spa with a programmable shower panel with adjustable spray jets, fog-free mirror, and multifunctional shower head. Most systems easily attach to existing plumbing. Panels typically sell for $360.

7. Turn a mudroom into a garden room. Bring nature inside by recasting your drab mudroom into a flower-filled garden room. (If you already have a utility sink, you’re halfway there. If not, it will cost you $200 to $350 to tap into existing, nearby plumbing, and $80 for a plastic tub.) Repurpose an old wood table into a potting bench. And hang your basket collection from J-hooks attached to a forged iron curtain rod ($100).

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Lisa Kaplan Gordon wrote this copyrighted article that appeared on House Logic.com and is used with permission. She is a HouseLogic managing editor and builder.

Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

Explaining Home Savers Program

2011-11-16T06:44:00.001-06:00

Home Ownership Matters! But what happens when a person buys a home in good faith, and suddenly the world seems to collapse due to a job loss? Does home ownership still matter if foreclosure looms just over the horizon? There is a program available that specifically helps homeowners who encounter economic misfortune. Let’s discuss the “Home Saver” Program.

Mississippi’s Home Saver program provides financial assistance for distressed homeowners. The main requirement is that the homeowner either lost their job or experienced a significant income reduction through no fault of their own due to the economy.

The loss of a job, a reduction in hours or a reduction in hourly earnings because a company decision to cut expenses is one of the conditions needed to apply for the Home Saver program. Unemployment or underemployment means it is no longer possible to make a mortgage payment. The Home Saver program makes the monthly mortgage payment for a short period of time.

Program Eligibility – This is a program for Mississippi residents with their primary home located in Mississippi and experienced a job loss or major employment change after January 1, 2008. The property owner must have owned the house for at least one year. The combined income for the borrower (and co-borrowers) cannot exceed a prescribed limit. In Lowndes County that is $60,600. The total monthly mortgage payment must be at least 31 percent of the gross monthly income. The unpaid principal must be less than $271,000. Additionally, liquid assets (funds converted to cash in less than 10 days) are less than three months of mortgage payments.

The Home Saver Program does not provide assistance on second mortgages. Another small caveat is the need for a permanent foundation for all manufactured or mobile homes.

Required Documentation – Like with almost any type of assistance program, documenting the circumstances is extremely important. These documents helps counselor complete the application process needed for approval.

Provide all foreclosure documentation, including late mortgage payment letters. Bring the most recent statement for each mortgage and/or lien against property. The warranty deed (establishing ownership), deeds of trust (establishing the mortgage debt) and the note itself are part of the documents needed. Don’t forget to bring documentation showing homeowners insurance and property tax statements.

Provide as much income information as possible. That includes federal and state tax returns that include all attachments such as the mortgagor’s W-2 form. Freely provide at least two or three months of bank, charge accounts, loans, utility bills, home owners association dues, etc. Make available any paystubs, income statements, or judgment decrees. Be able to provide authoritative unemployment documentation that includes the circumstances involving the loss of income. Finally, bring photo identification, such as a driver’s license or other recognized and acceptable ID. The processor also needs the original social security card.

Ineligibility Factors – As much as MHC wants to help everyone, it simply cannot. Do not apply for the Home Saver program if in active bankruptcy. Leaving a job for health, family or personal choice reasons is insufficient grounds for this program. Income loss as a result of investment earnings, social security, temporary assistance to needy families, child support or alimony is also a disqualifying factor. So is any mortgage delinquency of six or more months. Underemployment income of less than 25 percent the normal income is another unfavorable factor. Seasonal workers and the self-employed do not qualify for his program.

The Good News – Participants have two options. The can see mortgage assistance or use the education option.

Mortgage Assistance – Home Saver gives homeowners time to find gainful employment and to increase their household income without the worry of foreclosure. The program brings delinquent payments current. Home Saver may pay up to six months of arrearage, including associated fees and penalties, accumulated during a period of unemployment or substantial underemployment. MHC pays 100 percent of the monthly mortgage payment for up to 12 months while the homeowner looks for work.

Mortgage Assistance-Education Option – Homeowners may enroll in a community college or 4-year institution at their own expense to improve their job skills. The Education Option provides additional months of assistance beyond the basic assistance available under Mortgage Assistance alone.

Your REALTOR® has much more information on the Home Saver program.

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Explaining The Home Loan Plus Grant

2011-11-15T06:44:00.004-06:00

Homebuyers often become confused because of various methods of financing especially when they combine certain features of one program along with the features of another program. That does not always work. There is a program that may help bridge that gap, and especially for low income homebuyers that do not own a home. It’s called the Home Loan Plus Program. Let’s explain the basic details about this generous grant.

Administered by the Mississippi Home Corporation, the Home Loan Plus program is one of interest to first time homebuyers or persons who have no homeownership interest in a property at the time of loan approval. The main requirement is that the borrower must qualify to purchase property by permanent fixed-rate mortgage through a MHC approved lender. There is such a lender in Columbus, Mississippi.

The lender may take the value of up to a $14,999 grant into consideration when approving the applicant for a mortgage. As an example, if the borrower normally qualifies for an $85,000 mortgage, the pre-approval letter can read $100,000.

The household income must be below 80 percent of median income adjusted for family size. Let’s discuss two key words. One is “household” income. Every person living under the same roof comprise a household. There is no requirement for a marital relationship or a blood relationship, just the number of heads that sleep under the roof. The median income for a family of four in Lowndes County is $40,400. That means if the household income for a family of four is less than $32,320, they meet the income qualification for a Home Loan Plus. That $32,320 changes up or down depending on how many people live in the house.

There are some other limitations also. This program is available only to US citizen or qualified registered alien who have obtained a social security card. The purchaser must attend a homebuyer education through HUD-approved housing counselor. If married, both spouses must attend the home buyer education class regardless if only one spouse will be on the mortgage loan.

Another key component is a 29/41 debt to income ratio. Say what? Let’s explain that in detail. Assume the household income is 30,000 for a family of four. Divide $30,000 by 12. The monthly income is $2,500. Multiply the $2,500 by .29. The $725 answer is the allowance for housing expense. Then multiply $2,500 by .41. The $1025 is the amount allowed for housing expense plus current debt. If the borrower can keep credit card bills, auto loans, student loans, judgments and so forth below $300, he has an acceptable income to debt ratio for this program.

The purchase price of the house cannot exceed $150,000 and cannot be located in a flood plain. That means there are more than 150 houses available for this program in Lowndes County. With mortgage interest rates below 4 percent, a buyer can purchase a $150,000 house and have a monthly mortgage payment of under $725.

The borrower must physically live in the house and use it as the primary residence for at least five years. There is no age restriction on the property. The house can have historical value, be new construction or fall anywhere in between.

Let’s quickly put this into an example. A family of four can buy a house priced at $150,000. They can get a $14,999 grant that can become the down-payment. Now the buyer only has to borrow $135,001. The monthly mortgage payment just saw a $72 reduction to well below $650 a month.

There is one more reason that MHC named this the Home Loan Plus program. Qualified borrowers for FHA, VA, USDA Rural Development and approved Fannie Mae and Freddie Mac mortgages can use this program.

The nice thing about the Home Loan Plus Grant is being able to control the actual use of the grant money. A portion can pay for the closing costs. In some instances, a buyer may gain additional negotiating strength by paying for the closing. Before making those types of decisions, it is best to consult with a real estate professional that has knowledge of the market, knowledge of loan options and proven negotiating skills.

Your REALTOR® has additional information about which local lenders offer Home Loan Plus Grants.

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