Looking Out From the Garage

Cover of Royal Wedding

Are you "Royal Wedding"ed out yet?  Honestly, I was a bit over it a week ago.  I appreciate the historic significance of the event, but knowing what type of diapers Kate and William wore as infants and interviews with people that saw them in the hallways at grade school is a little much.

And then I heard that the estimated cost of the event was between $34M and $60M (British Tax Payers shelled out about $30M for security in addition to the cost of the nuptials...).  And I got to wondering...

What kind of Real Estate would $34M buy in Gwinnett County, GA?

Honestly, that would be a REALLY generous budget around here.  The most expensive house listed in the county right now is "only" $6,750,000.  It is lovely 8 bedroom, 10 full/2 half bathroom home in the Sugarloaf Country Club (and it you want to buy it, I would be GLAD to help you out... Proof of Funds are required for showings).

There would even be a nice chunk of change left over to buy a warehouse to keep the toys in... and there would be a pretty nice toy budget in there, as well.

What about a nice lake house on Lake Lanier?

Well... I happen to know of one.  it is a mere $4,500,000 and has 5 bedrooms, 5 full baths and 2 half baths.  There is also a 6 car garage and just over 6 acres of grounds... with 750 feet of lake frontage.  Lake Lanier is just north of the Atlanta Metro area, between Gainesville and Cumming, GA.  It borders Gwinnett, Hall and Dawson Counties.

There are some homes in Buckhead and a few other areas around here where there are homes between $10M and $20M... but these are pretty interesting homes.  And $34,000,000 is a LOT of money.  In fact, ALL of the homes sold in Lilburn, GA, during the 1st Quarter of 2011 totaled up to about $16,800,000.  That is a lot of coin...

(Yes, I am behind schedule... this should have been up here on Wednesday...)

Two years ago I wrote a post about fixing things for my son (now I have to fix things for two of them...).  Last week I had a closing that fit the post...

As a Dad, part of my job is fixing things.  As a Real Estate Agent, part of my job is fixing things.  Luckily I don't have to glue/weld, nail or pop things back together in houses... although I have had to help a property or two pass an inspection, but that is another story.

Image via Wikipedia

The closing last week was hard won for my client.  The buyer and seller had their work cut out for them in order to get to the closing table.  The issues weren't anyone's "fault", they just 'were'.  My "goto" Mortgage Dude, Ken Cook, the other agent and I all worked together to find solutions.  The buyer and seller were both flexible.

Even at the last minute when the HUD (closing settlement statement) came in, there were only about three lines that were right...  Of course, the HUD was supposed to be available 24 hours before closing... it was available 90 MINUTES before closing was scheduled.  As I was driving to the closing, I was on the phone with the other agent and the mortgage team, fixing it.

As the buyer was signing the loan docs, the other agent and I were in the hall, talking with a program administrator, closing coordinator and the mortgage team.  We had to tweak the contract to get it all to work... and everyone involved played a part.

And we closed it.

The seller was able to sell a property for which they no longer had need.  The buyer was able to buy a first home.  As we all filed out of the closing room, everyone was happy and thanking the others for their patience and perseverance.

We fixed it.

Fixing it... on LaneBailey.com

Image via Wikipedia

I was at a real estate conference last week, and one of the things the presenter said REALLY struck a chord with me.

Ten years ago, WE used to tell our clients which houses we were going to look at that day.  Now, THEY come in and tell us which houses we are going to see.

Obviously, this is a giant change in the way real estate agents do business.  Since my entry into the real estate business, it has always been the way I've done business.

In the "Old School" world of real estate, agents were the gatekeepers.  We controlled the access to the information.  We had the listing information, and it wasn't available to the public.  Some agents still wish that the old order ruled the day.

Technology has turned the tables... and it is for the better.  Buyers have never had as many choices, nor as much access to information.  That is something to be applauded.

Feel free to tell me which houses interest YOU...  I'll be happy to make suggestions, but they are just that, suggestions.

Image via Wikipedia

This week last year, the biggest news in housing was all about the Tax Credit expansion and extension.  It went from just being for First Time Home Buyers to allowing existing home owners to get a credit also.

Those credits finally expired in April (with closing mostly by June).

Looking back on the market reports for the last year, the effect of the tax credits is pretty obvious.  And I wouldn't call it all a good thing.  There certainly was an increase in closed sales leading up to the original June deadline.  But, there was a VERY sharp fall off in almost all markets in July through September (and more current data isn't available yet).  Sales were well below last year for the same periods.  Of course, there was another tax credit at that time, so it may be hard to judge.

The fear for those of us in the real estate business that weren't thrilled with the credit was that it was "stealing buyers from the future".  It wasn't creating new buyers, but just altering the time table.  That theory is borne out by the data we've seen so far... sales dumped after the credit expired.

For those that pushed for the credit, there was an expectation that it would "jump-start" the housing market.  It did, but as soon as the cables came off, we saw that the battery was still dead...

Image via Wikipedia

Personally, I am of the opinion that the way to boost the housing market is with sustainable private sector jobs.  When people aren't worried about the pay check next month, they are more likely to think about buying a home.

However, right now, interest rates are amazing and home prices are too.  I have been in a few homes in the last couple of weeks with prices that were just shockingly low.  And my mortgage guy is working on a loan for someone WITHOUT perfect credit with a rate in the low 4% range...  Another client (with EXCELLENT credit and a 15 year loan) was in the high 3% range.  (Please keep in mind that there are a LOT of variables that determine your interest rate... talk with a mortgage pro).

Related articles

• Solar and Federal Tax Credits for Residential Systems (solarfeeds.com)
• Flashback Friday... Mortgage Thoughts... (lanebailey.com)
• Flashback Friday... Bankrupt Subdivisions... (lanebailey.com)
• This is what I feared... Gwinnett Market Report - July, 2010 (gwinnettgarageguy.com)

from LaneBailey.com

Image via Wikipedia

A couple of years ago I wrote a post about a particular property.  It was a foreclosure, and the bank acted stupidly.  And I’m not saying that lightly.  Had they accepted my client’s offer, they would have sold the property a year earlier and for $40k more than they eventually got.

It is an interesting read…

Now I see a lot of people making the same mistake from the other side of the fence…

I see buyers trying to deliver one last beating to the bank… often during the inspection phase… and losing a great deal over things that are trivial.  I understand it.  That doesn’t make it any better…

I had one client that was angry that the bank accepted his offer.  He thought they would counter.  I had warned him that they might accept of reject, but not counter.  Some of the banks have a number.  If you offer $1 over the number, they accept.  If you offer $1 below, they reject.  During the inspection period, this client made a LOT of demands.  The bank rejected.  No counter… no discussion.

Don’t make the same mistake the banks were making.

The First Time Home Buyer & Move-Up Buyer Tax Credits are slated to end unless a property is under contract two weeks from tomorrow.  I don’t see another extension this time.  Even the NAR isn’t pushing for it this time. (Active Military have an extra year to get the credit…)

Image by Steve Kay via Flickr

Because there is still a little time, I thought I would share a few posts about the tax credits… and a couple of other cool programs available.

First Time Home Buyer Tax Credit… Extended and Expanded

Groovy Site for First Time Home Owners…

Is this the time to buy your first house?

A (very) Quick Rundown of Some Current Buyer Programs

Do you have a Dream? Georgia has a Dream… for Buyers!

Are you a Home Buyer? Don’t Forget This…

I hope that some of these are useful for you.

Don't drag your feet. 

If you are planning on taking advantage of the Home Buyer Tax Credits (either the $8,000 First Time or $6,500 Existing Home Buyer Tax Credit), time is running short.  The credit expires for buyer not under contract as of Saturday, 30 April, 2010. 

That means that you HAVE to be UNDER CONTRACT... not just have an offer...

I have had a couple of buyers think that they could put in an offer and then negotiate it in May...  No.  There has to be a Binding Agreement on or before 30 April, 2010 (unless you are Active Duty Military... you then have an extra year). 

And then comes the next hurdle...

The sale HAS to close by 30 June, 2010.  In effect, this puts the vast majority of Short Sales out of reach.  The average time for a Short Sale to go from Binding Agreement to Closing is over 4 months.  Generally, Foreclosures should be Ok... IF you can get the bank to respond in the next two weeks.  Some of the banks are slow to respond, and if there are several rounds to the offer before it is finalized, time could run out. 

Don't look for another extension...

Honestly, this has NOT been a good deal for taxpayers.  The incremental increase in sales (sales that would not have happened except because of the tax credit) are less than one in 5.  That means that there are more than $40,000 in tax credits for each sale "created" by the credit.  Political will is waning.  The numbers are waning, too.  The last credit converted more buyers.  Even the National Association of REALTORS doesn't seem to be pushing for a renewal of the credit at this time. 

Maybe the Tax Credit isn't that important for you...

I think there will be some deals for buyers after the expiration of the credit.  For some buyers, especially those that are making significant downpayments, waiting might be a good strategy... but don't expect an immediate impact on prices.  And there is always the 'risk' that prices will remain stable and the opportunity will pass with the expiration of the tax credit. 

The other danger we face from waiting is an increase in interest rates.  There are a few factors that point to significant increases in interest rates over the next few months. 

If you are in the market now...

Give me a call.  Let's see if we can find the right property for you.  You can even jump into my property search below on the left...

Greg Nino had a fun post I saw earlier this evening.  He is a real estate agent in Houston, and he was sharing some of the crazy things he's seen while showing homes. 

Most agents have stories like those... and I was reminded of a few of mine. 

Here are some of mine...

• Dead Guy House

We called for an appointment, and showed up at the alloted time...  After spending about 15 minutes upstairs, we decided to take a look at the basement.  The dogs were loud, but they were supposed to be friendly.  The gang leader was a beagle...  I took the lead and met three very happy dogs.  As we came down the stairs and turned into the basement, to the cheers and wagging tails of the three loud dogs, we were greeted with a guy laying on the couch... remote in hand... in his boxers... golf game on... and (hopefully) asleep.  We backed out. I called the listing agent to let her know there was someone there... and to have her call for medical attention if needed. 

• Angry Old Lady House

Another appointment home...  and we had one.  Of course, I knocked before going in, and then called out after entering, to make sure anyone there would be aware of us.  After about 5 minutes, a VERY angry elderly woman in a housecoat, brandishing a wicked broom strode in from the guest room.  She really didn't want us there, so we left.  My clients weren't that interested in the house, so it wasn't a problem. 

When I spoke with the listing agent, she let me know that 'Grandma' was not very happy about the impending move (it was her daughter and son-in-law's home... she lived with them).  It was her little protest. 

• Voyeur House

Sometimes the house itself has things that make it remarkable.  Voyeur house was a vacant foreclosure.  But there were vestiges of past lives in the homes...  In each bedroom, there was a surveillance camera.  All of the feeds went back the master suite.  We don't know if the feeds were for the kids' bedrooms... or if there were kids.  But the guest room was wired up, too.  And the basement was set up like a 50s Diner... neon, checkerboard floor, teal walls...

• Racer X

Many of my clients are auto enthusiasts.  Racers, car collectors and others that enjoy wrenching on their cars...  While looking at a home with some clients, the neighbor (later to find out he wasn't thrilled about the prospect of new people coming into the neighborhood) decided that he needed to tune HIS racecar.  It was a pretty sweet Camaro that ran in SCCA American Sedan.  It was kind of loud... 

My clients went over to take a look...  The next thing you know... beer was shared and wrenches were turned.  The neighbor respected their Corvettes and my clients certainly respected the A/S Camaro.  I'm not much of a beer drinker, but I can say that it was amazingly fun to sit and watch four people discover that they really have a lot in common (Mrs. Neighbor wandered out to admonish Mr. Neighbor for trying to derail a sale...).

There are lots more.  They range from really cool clients to really strange homes to odd sellers... or odd/cool neighbors. 

If you are NOT an agent, have you had an experience like this while looking at houses? I knwo that my agent friends will be happy to share some of their stories...

A couple of years ago this week, I wrote about a (then) new marketing move I had been seeing.  Both new home developers and owners of existing homes were offering free cars to buyers. 

Image via  Wikipedia

From that time to this, I have seen this offer in a variety of ways…  I’ve seen builders offer leases on expensive cars, like BMWs and Jaguars (both to agents and to buyers), or inclusion of less expensive cars, like Hondas and Toyotas.  I have seen private sellers offer up new Fords, Toyotas and others… and even include used cars.

But… there is a serious danger.  Especially in a market that may have more to fall… or might just skip along the bottom for a while.  Here is the original post.

Pop in and give it a read.  I’d love to hear from you.

What do all of these things have in common? 

Different real estate consumers have different needs. 

For several years, I have concentrated on 'special' properties.  In the last few months I have helped buyers find a house that could hold four vehicles inside... with space for another garage that would hold several more.  Another buyer needed a room that could hold a quilting machine that was sixteen feet long. 

Different real estate consumers have different needs. 

Recently I ran across a different (to me) concept... a home classroom.  For this home owner, a space to home-school their children was a priority.  In addition to high speed internet, the room was equipped with a white-board.  It was also situated to minimize distractions from the rest of the house. 

Different real estate consumers have different needs. 

There are scores of hobbies and lifestyles that real estate buyers have.  They range from those that are easy to accomodate to some that would almost need to have a home custom built to integrate.  I have seen homes that were for ballroom dancers, radio contolled car racers, RV enthusiasts and artists.  In each case, there were numerous details that were designed around the needs of the owner.  Marble floors and floor to ceiling mirrors, wide open basements, giant garages with huge doors and big north-facing windows have been in these homes. 

The bottom line...

Communicate your needs to your real estate agent.  And make sure that your agent is looking for what YOU want and need, not what THEY like.  That can be tough sometimes...