Before the creation of the internet finding a home was an even more lengthy and costly process. You and your Realtor who would spend a great deal of time looking at property listings, and home shopping meant driving around for hours, days, weeks, and even months walking countless properties!

Today with close to 80% of buyers using the internet to do housing searches, not only is it much easier, but the process allows us to use time for more effectively by not having to spend valuable time driving around viewing properties that don’t meet your objectives. By searching online, you as a Buyer happen to be doing some of the work. If you do the research and preview properties online, you as the buyer should be rewarded. This offer is not available to those buyers currently in a buyer’s representation agreement with another broker or Realtor. There are also other details outlined and full eligibility described on the site.

Check out this page. You will find it on the tool bar positioned on the left side of the website. I assure you it will be worth registering to find out how it works! Registration is painless, only asking for your name, phone number, and email address. Once registered you can view the details of this program and you will receive a questionnaire to aid me in the search for a property that meets your objectives.

According to an NAR Profile of Home Buyers and Sellers, 13 percent of recent home buyers bought directly from a builder without the help of a real estate professional, and 9 percent bought their home from its previous owner without professional assistance.

Buyers who make what can be the biggest investment of their lives without an agent may be confused about commissions, think they are saving money because they believe sellers will pass along any savings to a total stranger, or are uninformed about the complexity of today’s home buying process

In a recent quest for information, a recent homebuyer shared with me that they had an excellent experience on the purchase of their new home. Rob M. from Boston stated, “My realtor knew I was a first time homebuyer and was very patient with me. They knew that they would have to help me a lot because this was my first time buying a house, however, they also realized that I knew the ball was in my court, as far as buying a house.

I looked at well over four dozen houses with my realtor. I eventually settled on a house that was priced almost $50,000 below comps (but that is because the home owners did not do anything to improve the house in the last 10 years or so), so in working with my realtor, I was able to get a new roof, new hot water tank, an accepted offer almost 10 percent below asking price, and the owners to pay my closing costs.

Sure, a lot of what I received was due to the market, but overall, my realtors did a great job of helping me out and assisting me to purchase a great house in a great neighborhood in a not-so-great market.”

Rather than the suburban ranch of their parents, many members of Generation Y prefer urban lifestyles, with homes that give them wide open spaces, lots of light, wireless access, and green building features, according to experts at a recent Urban Land Institute meeting. Demographers also suggest that, given their tendencies to delay marriage and childbirth, some members of Generation Y may delay other commitments like homeownership, as well.

As always, I would rather inquire and do some of my own research as well. What I wanted to find out first hand was what the views of buyers were of buyers who are in their mid-20s on and experiences with homeownership. What’s important to them in a living environment, how do they live now, and where would they like to be in 20 years, from a homeownership perspective?

One “20 Something,” Amanda N., stated, “I bought my first home when I was 22 and the most important thing to me at the time was money. Getting in on a good deal, with a good first time buyer program was what made me make the move so quickly. I started looking for a home, with the hope of moving within the year, but due to a great broker we got financed and in a home in a month.

The thing you have to remember about the general GenY population is that they have a thing for instant gratification. You need to act, if they are looking get the ball rolling quickly. A majority of people who fall into that GenY category are quick to make decisions – so it is important to be able to act upon that impulse buying – even if it is in relation to something so large as home and property.”

Another member of “Gen Y,” Erica F., commented, “Not only because I am a “20 something” myself, but I have noticed that across the board, my generation has become much wiser about their finances and tend to view a large purchase such as a home, with very careful consideration.” She goes on to say, “Gen Y is an extremely tech savvy group and so are we.”

Furthermore it seems that Gen Y can be reached at all times via email, text, Skype, Facebook, Twitter, etc. and they have found that really works. “In today’s age with all of the technology that is available to us, we have really worked with it to increase the flow of communication and make all data transparent to the consumer,” according to Erica F.

All in all, it seems that this group of individuals knows what they want, they have the finances to achieve many of their goals, at least short-term in nature, and they are tech savvy.

If you are looking to become the newest member of the “Home Ownership” club, and are a member of Gen Y, X, or even a Boomer, please check out my website for a FREE First Time Home Buyer Book written by Gary Keller of Keller Williams. My gift to local first time home buyers in the Greater Athens area!

Also, how do you approach the process of home buying, what home features are important to you, and what are your  expectations of home ownership?

If you would comment on this post or email me at hankbailey@kw.com, I would love to know your thoughts!

It seems that loan options over the past year or two have diminished greatly. Many complain of the huge barriers that seemingly exist that prevent them from home ownership. Did you know the USDA has Rural Development Housing loan. These guaranteed loans provide 100% financing with expanded ratios to qualify. Expanded ratios mean that if you carry more debt than might meet “conventional” loan guidelines, you can still possibly qualify. Unlike FHA there is not maximum loan guideline.

To view Rural Eligibility Areas please click the link. Once on the USDA site, click on “Property Eligibility” on the Tool Bar on the left side of the screen and click Single Family Housing.

Think you can’t qualify? Take time to look at their Frequently Asked Questions. From reviewing these myself it appears that they have no “minimum credit score” restrictions. You have to show that you are “adequately willing” to repay your debts. Furthermore, you want to renovate the property you are purchasing, do it with this loan product.

This is not for farms. It is for Rural Residences. Other than most of Athens and Watkinsville, there are plenty of areas around the Greater Athens area that would qualify.

If you are waiting for homeownership you may not have to wait any longer!

People who are considering a move can also literally find out if it’s a beautiful day in the neighborhood by studying the area’s weather index and historical climate data, and can zoom in on specific locations using satellite imagery.

To learn more about local real estate markets across the country, visit http://neighborhoods.realtor.com/.

“Find a Neighborhood” incorporates psychographic data from Claritas to give visitors insight into the lifestyle preferences of area residents.

You should visit the site to learn if your community harbors Fast Track Families; includes Big Fish, Small Pond-er’s or is inhabited by Urban Achievers.

• More money; The amount of money you are permitted to borrow for the purchase and renovations is based on the increased value of the home after improvements are made, and according to our local representative the values after considering renovations have a value of 110% value on work to be performed.

• Lower payment on going payments; Renovation costs are spread throughout the entire term of the loan.

• Tax deductibility; The interest on the cost of your improvements, included in your mortgage, may be tax deductible.

• Convenience for you the new Homeowner; Start customizing your own improvements after closing. There is no reason now to pass up a house that’s in the ideal location but needs your own personal touch through remodeling!

• Keeping it Simple; One loan closing, one closing to attend and one payment each month

Recommended for the homebuyer who;

• Is interested in buying a house either in need of renovations or fixes, but want to avoid going through the hassle of getting two separate loans.

• Need extra financing to improve newly purchased property.

Why not simply get a 2nd Mortgage or HELOC to fund renovation projects? It’s simple, funds you are permitted to borrow with this program is based on the home’s value after improvements are made not based on purchase price before improvements.

Another tool out there for the Buyer who I have walked houses with who finds a house in a perfect location or home with great pluses, but also has quite a few negatives. This is an exciting loan program that today offers many possibilities. Customize that house and make it your own!

If you are in the process of starting your home search please contact me. I would be happy to assist you and to direct you toward this program and the qualified individuals who originate it!

Apparently Living Green is rubbing off on people around the country in a larger way. According to the Better Homes and Gardens Real Estate “Living Green” Consumer Survey almost 50% of homeowners would spend $2,500 or more on greening up a home for resale.

According to Better Homes, “A survey conducted at home shows in 15 cities across the country gauging consumer environmental practices suggests that many Americans are going green when it comes to their homes. Despite “cost” being singled out by 36 percent of respondents as the greatest impediment to going green, half of those surveyed have paid more money for an energy efficient product in the past 12 months and one in three homeowners (30%) claim they would be willing to spend $5,000 or more on green improvements to increase a home’s appeal to potential buyers. The findings are the result of the Better Homes and Gardens Real Estate Living Green Consumer Survey.”

These sellers are quite right in their assumptions. In a Buyers’ market like we find ourselves in today, there has to be some way to make yourself different. To set your house apart from the competition is key, and Green Living is making a strong headway now a days with concerns over the environment.

“As their environmental awareness grows, American homeowners are beginning to take action on green issues and are willing to spend their money accordingly,” explained Sherry Chris, president and CEO, Better Homes and Gardens Real Estate. “These survey results confirm homeowners are identifying greater value in green and when the time comes to sell their homes, they will look to convert high consumer awareness levels on the green issue into a market differentiator.”

The findings paint a picture of a generation that has embraced homeownership. Nearly 8 out of 10 boomers own their own
homes, and one in four own more than one property. For many, these investments are part of a retirement strategy – 4 in 10 survey respondents intend to make their vacation home their primary residence when they retire. Most baby boomers surveyed aren’t optimistic about retirement, however; two-thirds believe it costs too much today to truly retire and never work again. Affordability Sources in Cyberspace The shortest distance between renting and owning a home may be online. Many federal, state, local and private initiatives support affordable housing, but sometimes the difficulty in identifying these programs is a barrier in itself.

Is there an echo in here?

The oldest echo boomers (Gen Y), who are the children of baby boomers, are in their mid-twenties, and some have already become homeowners themselves. According to one study I found however, young people are prepared to delay buying their first home for five years or more to ensure they can afford something that meets their expectations. The study said, “The evidence suggests that Generation Y will delay buying housing for some time, but not forever.”

“If the economic landscape is favourable, there is likely to be a rush to buy into the property market as this demographic reaches a certain age and level of affluence,” according to the study.

It seems to boil down to the fact that these Gen Y homebuyers have learned from mistakes of older generations and are well studied in where the market place is today thanks to the internet and other sources. The ease of their position is that most of this generation does not have to sell property before buying. They are therefore in the driver’s seat.

What’s more, they provide you with how many properties in the area you choose are under pre-foreclosure, being auctioned, bank-owned, FSBO, or simply home resales. If you wanted information at your finger tips to find that right buy, now a days you have your opportunity.

There is even an option to Find the Best Neighborhoods to Invest on the site. Now with this feature you can, for example, find houses based on median price range. You have access to Neighborhood Appreciation Rates, Public School Information, Crime, Neighborhood look and feel, and other demographics to make you aware of the surroundings.

In all, this is one more useful tool I want to pass along. Remember that after you do your research, there is still nothing like hopping in the car and riding through a neighborhood. Get out and take a walk. Get a feeling of noise, the community, and the upkeep of the area. Talk to residents if you have a chance.

Then, shameful plug, get on my web site and search for your “Dream Home!”

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________

The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:
• Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.
• Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
• Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________

Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.

• You have not sold or exchanged another home during the two years preceding the sale.

• You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

What’s Your Market’s Median Home Price? Realtor.com provides you with metro statistical area mapping to provide you with the latest median home pricing in your area of the world! It also provides changes from previous quarter.

Visit Interactive Home Pricing Map for more detail.

Q. Don’t seller inspections kill deals by forcing sellers to disclose defects they otherwise wouldn’t have known about?

That is a great question! And one often asked by home sellers. The reality is that the vast majority of re-sale homes will be inspected by a competent, experienced inspector. So the only thing a seller can really control is not “if” the defects will be known by all parties, but WHEN. And WHEN is critical. Knowledge is powerful. If the Seller is prepared with information via a pre-listing inspection, they have the luxury of time to address and/or disclose issues.
On the other hand, if you pass up that opportunity, you have allowed the negotiating leverage to pass to the Purchaser and their inspector when they approach you with a list of things they “found”. Remember, any experienced Agent will tell you, the chance of a purchaser cancelling a contract is much higher whey they “find” the issues, rather than if you disclose them before they ever sign a contract!

Q. A new(er) home in good condition doesn’t need an inspection does it? Why should the seller have one done? Can you give examples?

I wish that were true. Our experience tells us that every home, whether brand new or 100 years old, needs to be inspected. In fact often times it’s the new or newer homes that require a longer list. Examples: It is well
documented that well over 50% of the time inspectors will find open nail holes in roofing shingles and other roof defects on brand new homes. This past week a relatively new home was found to have some plumbing and roof issues during a buyers inspection. The repairs would not have been expensive; likely less than $3000. Sadly, even though the home had been on the market for 400 days, this buyer cancelled the contract. Why?
Discovering these undisclosed issues caused him to have second thoughts about a property he was previously excited about. The time to discover issues is NOT when you have a buyer standing there. HAVE YOUR HOME PRE-INSPECTED. It will avoid giving a buyer a reason to walk away.

Q. Do seller inspections reduce the need of the buyer to obtain their own inspection?

What you are trying to convey to your purchasers is that I feel good enough about my house, and care enough to ensure a pleasant experience for you, that I have paid out of my own pocket for a certified, experienced inspector to scrutinize my home, and provide a free copy of the inspection report to you. Often times a buyer will go with your report and decide not to hire their own inspector. But even if they take the redundant step of having your home re-inspected, you can rest easy knowing that, even though there are sometimes cosmetic differences in inspection findings, all of the significant issues that could make a difference in the negotiations are already on the table. Remember, you have a lot of competition for purchasers out there. Pre-inspecting is one way you can set your home slightly above all the others in the eyes of your Purchaser. There are statistics to support that Pre-Inspected homes have shorter D.O.M. (Days on Market) and sell for a higher price.

This could be the difference maker that results in the taking away of doubt in a buyer’s mind, may just get that offer over your competition! If you want to contact Mark Lotane about an inspection please email him at marklotane@homeproga.net.

As far as interior upgrades or improvements are concerned, the kitchen is the room in the house most apt to warm our hearts, stomachs, and wallet. A minor kitchen remodel, with 83% of cost recovered was one of the few interior jobs mentioned in the report. On leading exterior improvements the report found that siding replacement using fiber cement materials such Hardi plank recovered a whopping 88.1%, a new deck addition 85.4%, even vinyl siding replacement recovered 83.2%, and midrange wood window replacements recovered 81.2%.

On most projects, the value of remodeling trended down in 2007 compared with 2006. We shall see where it trends in 2008. Likely reasons why recovery costs were lower than in previous years are rising remodeling costs due to higher demand and housing depreciation brought on by the an abysmal housing market in certain locations on the country.

Some home “improvement” projects in fact may not offer much improvement at all. For example, home offices personalize a space that might fit the current owner’s needs, but all too often most buyers may not see the same value. Hey, those $20,000 in built-in cabinets look great, and they are practical for how you use that space, but don’t expect the appraiser or a buyer to give you nearly what you put into them in value on the home.

Good rules of thumb;

• Never reduce the amount of rooms in a home due to a remodeling project even if there are perceived benefits.
• Consider the condition of the house as a whole before embarking in remodeling one space. It may cause you to find that either the money spent on that one project will have a lower recovery cost due to a unbalanced condition of the house as a whole or it may cause you to spend the money elsewhere.
• Consider the value of comparables located in your neighborhood before committing to a remodeling project. Is your house currently on the high side of value for your area? Then you may get back less for the remodel compared to if your house is currently on the lower side of value for your area.
• Where resale value is a major factor in a home owner’s decision to remodel, find a home builder/remodeler and get multiple quotes to develop a construction budget. Get a Realtor to help you find comparables or sold properties that closely match the description of your home. Invest time into the project on due diligence to make sure that it makes sense.

If you need help in finding a reputable contractor or builder in the Greater Athens area please let me know! I would also be more than happy to assist in finding any information on comparables and providing a home value report. Please contact me if you need assistance in these or any matters dealing with real estate!

On which website should you put your home or property to get the most hits, the most exposure or online presence? According to Hitwise and their Top 10 real estate website rankings in October, Trulia and MSN Real Estate bumped Homegain and Coldwell Banker Real Estate out of the Top 10, but Realtor.com, Yahoo Real Estate, Zillow and ZipRealty held onto their places on top of the list.

“Trulia’s 1.53 percent market share of traffic in the real estate category was good enough to bump it up to ninth place, up from from 11th place in September,” according to Hitwise.

According to the nine (9) page report, Realtor.com carried 7.68 % market share while Yahoo Real Estate (4.11 percent) came in second and Zillow (2.55 percent) a distant third.

Homegain (1.36 percent) slipped from 10th to 11th, and Coldwell Banker Real Estate (0.9 percent) slipped from eighth to 18th.

Some of the leading real estate search terms were realtor.com, zillow, real estate, zillow.com, realtor, apartments and apartments for rent.

Information like this is crucial. You need to make sure you that you are represented online with an array of website exposure. For example, through Keller Williams.com and our KW Listings System a client not only gets exposure on KW.com, but they also get exposure on Yahoo Real Estate (#2), and Zillow (#3). Listing with a Realtor gets exposure to your property for sale with Realtor.com. Remember that being online is one thing, but you have to have something drive web traffic toward your property and toward you! Without the power of the large web search engines you lose quite a bit of traffic and that means fewer buyers. One thing that was noted in the report was market share for realtor.com was more than the combined market share of No.s 2 and 3. That is amazing! Always remember, exposure is the number #2 reason why a house will sell. You therefore have to magnify your exposure and leverage it as much as possible.

If you want to know what’s the number #1 reason your house will sell, email me and I will let you know!