Athens Real Estate Podcast with Justin Woodall

Here are two questions each buyer in today's market needs to answer. If you're thinking about selling your home in 2021, these are the two questions you must know the answers to: 1. Where are you going? Even though we're into the fall season, this market has continued to stay red-hot in most price ranges and areas. Appropriately-priced houses are still selling very quickly. This is one of the first questions we ask potential sellers. Whether you already have a home, plan on moving into a rental, or moving in with family, you need to have a plan. 2. What does the market look like in your area and price range? Some areas and price ranges are hotter than others. There is more competition in certain market segments as well. Based on what you're looking for, dig deep on that. If you have any questions for me about selling a home or real estate in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here's my opinion on what the end of the eviction moratorium means. What's the deal with the eviction moratorium ending? Some people are saying everything will be fine, while others are saying we'll see a wave of foreclosures. Who is right? Today I'll tell you everything you need to know about the end of the eviction moratorium.  Those who claim we're heading towards a crash are saying so because they think there is a wave of foreclosures right around the corner. During the pandemic, a lot of people went into forbearance. Now that the eviction moratorium is over, these people will have their homes foreclosed on, and it will be like 2008 all over again. Some people are even worried about landlords who couldn't pay the mortgage because renters weren't paying rent. In my experience of managing properties, I haven't seen a lot of tenants missing rent because we vet our clients thoroughly. However, this doesn't necessarily reflect the rest of the country.  “We may see some foreclosures, but I don't expect the market to crash.” On the other hand, some people say the market is so strong that people who have missed payments can leverage the equity in their homes to avoid foreclosure. Prices continue to rise, and inventory is still low. If the worst happens, our market can handle it.  Where do I fall along these lines? In my opinion, we may see some foreclosures soon. There's probably a backlog from the last 18 months, even if it isn't huge. Despite this, I do not expect to see a crash like we saw in 2008. Even if someone hasn't made their payment for several months, the market is so hot that most people will successfully leverage their equity. I don't expect the small increase in foreclosures to affect our market.  If you are looking to leverage the equity in your home to avoid foreclosure or if you have any real estate-related questions, please reach out to me via phone or email. I look forward to hearing from you.

Ask yourself these questions if you're wondering whether to sell or keep your rental. People who own rental properties have been asking me if they should sell them given how good the market is or if they should continue leasing it. If you've been wondering about this yourself, today I'll share three questions you should ask yourself to help you evaluate whether you should sell or continue leasing: 1. What are your overall goals? Is it your goal to own a portfolio of rental properties that you continually build upon? Assess where you want to be in five, 10, and even 20 years down the road, and let that weigh into your decision. 2. Do you think prices will continue to rise? If they do, then it may make sense to keep that property. If not, consider how you could reinvest the money from your sale and whether you could get a better return on your investment. “If you sell, consider what you're going to do with those funds and whether that coincides with your overall goals.” 3. What are you going to do with the money? Will you use it to pay off other debts? Will you reinvest it into another property? Is it just going to sit in the bank as a security blanket? Or will you put it into another vehicle to return another business, real estate, or stock market investment? So is it a good time to sell? Absolutely! Prices are very high right now. But ultimately, you need to consider what you're going to do with those funds and whether that coincides with your overall goals.  If you're thinking about selling a property or you're in need of property management services, don't hesitate to reach out to us. We're happy to help you.

Here are five things I wish I could tell every single homebuyer out there. There are five things that all homebuyers must know to have success in today's market: 1. Get your money right. You need to either have cash or get fully approved by a lender before you start your search. You need to know how you're going to finance a deal and that it will go through. We're seeing some offers with no contingencies at all, so you need to have your money right if you're going to compete. 2. Don't delay. Homes are selling fast in this market, so there's no time to “think about it.” A home that's listed on a Monday may be under contract by Friday. Demand is so high that most good listings are seeing multiple buyers. If it's a good deal, it's going to go fast. 3. Work with an expert agent. You need an agent who knows this market, how to navigate it, and how to advise you to make the best possible offer. There are a lot of agents out there, but they're not all equal. You need a full-time professional who is a strong negotiator and tuned into the market. They will help you find deals other agents might not be able to find and give you the tricks of the trade to win against other buyers. “ If it's a good deal, it's going to go fast.” 4. Make your best offer first. Don't try to negotiate. It works in a normal market but not in this one. You have to make your best possible offer from the start. At the same time, don't get emotional and overpay. This is another area where an expert agent comes in handy. They'll help you craft the right offer to win. 5. Be flexible. In this market, you may have to make an offer on five different houses before you finally win one. You may need to move up timelines or tailor your offer to be more convenient to the seller. There may be a seller who's ready to take your deal but only if you agree to their terms.  If you have questions for me about buying a home or anything else related to real estate, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here's what you can do if the house appraises below the sales price. Today I'm talking about appraisal concerns you might have. We're in a super hot market right now: Demand is high, supply is low, prices are rising, and occasionally we run into instances where a house will sell for more than the appraiser valued it. What happens in that situation, and what do you do as a buyer and a seller? Believe it or not, we're seeing some instances where buyers are buying homes regardless of the appraised value. Some are agreeing to pay a certain amount above the appraised value. An appraiser will come up with a valuation based on other sales in the area, and that poses part of the problem. The appraisal is based on history and homes that have sold in the past. In a rising market, prices are going up, so when you're looking backward, the prices are a little bit lower than what's selling today. “We're seeing buyers buying homes regardless of the appraised value.” In today's market, three things can happen if the house appraises low: 1. The buyer can renegotiate the price. If you go under contract for $400,000 and the house appraises at $390,000, you can go to the sellers and negotiate to pay $390,000. As a seller, you have the option to drop to $390,000 or you can stay at the contracted $400,000. 2. The buyer has the option of canceling that contract if it doesn't appraise. You can walk away if the seller refuses to drop that price. 3. The buyer agrees to pay the additional money as cash at closing. The bank will finance the house based on $390,000. That can make a big difference if that buyer is putting 3% down on a $400,000 house—that's $12,000. If they have to bring another $10,000, that's quite a big difference. If you're a negotiating seller and there's an appraisal contingency, it's less of a concern if they're making a large down payment. If you have any questions, please reach out to me at (706) 621-6085. Have a great day.

If you make over $1 million in capital gains, your taxes may be changing. Today I have a message for investors concerning the possible capital gains tax changes. The Biden administration plans to potentially change the capital gains tax rate from 20% to 39.6%, but it’ll only apply to gains over $1 million. However, this hasn’t been passed yet. If your gains are less than $1 million, this likely won’t affect you unless they change the proposal to a lesser amount.  If you have a rental house, investment property, land, or apartment building you’re considering selling within the next couple of years, it may be smarter to do so this year to avoid paying almost double in capital gains taxes. Prices are high, and it’s a great time to sell right now.  If this sounds like something you want to do or have any questions about it, reach out to us via phone or email. We’d love to help you.

Here are the four most important aspects to consider in an offer. As this market continues to get crazier and crazier, we’re seeing more multiple-offer situations. If you’re a seller and find yourself in a multiple-offer situation, here are four variables that you want to explore, consider, and evaluate before deciding on an offer: 1. Price. The higher the price, the better in most cases. However, it may not be the most important factor. See below. 2. The contingencies. These are things like the due diligence and inspection periods. How long are they? You also want to look at appraisal contingencies, financing contingencies, and more. Do they perhaps have a home sale contingency? Are there even contingencies in the offer? It all makes a big difference. “If an offer is high with no contingencies, you know the buyer is serious.” 3. The closing date. Are they giving you time to move out of the home? Do they want a quick closing? You also need to evaluate how important the closing date is to you. Maybe you have a buyer who makes a great offer but needs to close quickly and you need to make a decision. What’s that worth to you? Would you rather sell for more and sacrifice some stress with multiple moves, or would you rather sell for a little less and close on your ideal date? There is a lot to consider, especially in this market. 4. Earnest money. How much are they putting down, and when does it become nonrefundable? If it’s a high amount but there are a lot of contingencies in the offer, it’s a lot easier for the buyer to walk away. If it’s high and there are no contingencies, you know they’re serious. You have to look at all these variables, weigh them into your unique situation, and pick the offer that works the best for you and has the best possible chance of making it to the closing table. Our team prides itself on being able to sift through multiple offers with our clients and help them make the best possible decision for their goals. If you have any questions about multiple offers, selling a home, or real estate in general, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

Here are three reasons why we're seeing prices rise like we are. Why are real estate prices rising so rapidly? Many factors contribute to this trend, but today I’ll share three major reasons why we’re seeing prices rise like we are. 1. A lack of inventory. High demand and low supply mean prices are on the rise. If you’re thinking of selling, it’s a great time to sell. If you’re buying, it’s tough, but there are still ways to do it. 2. Interest rates are declining. Rates are lower than they were a year ago, meaning that monthly payments are affordable. You also have a buyer pool that can afford to pay more. If you’re a buyer and you can lock that rate in for 30 years as these prices continue to rise, you’re going to be better off buying today than you would be next year or the year after. “If this trend continues, we’re going to continue to see house prices rise.” 3. Building costs are rising. Just go to Lowe’s and look at the price of lumber and other building materials. The cost of all building materials has gone up, and so building costs increase with them. To sum up, we have low inventory and builders need to build more, but it costs them more to put that house out than it did before. This means buyers are going to have to pay more for new construction, but again, as long as interest rates are low, you can get into a new-build with a payment that works for you. If this trend continues, we’re going to continue to see house prices rise. If you’re in the market, reach out to us and we’ll be glad to tell you what’s going on in your specific area or your specific price range if you’re looking to buy. If we can do anything for you, a friend, family member, or coworker, let us know.

Even in a strong market, it pays to have a professional on your side. Today I want to tell you a story about a homeowner who sold one house to two different buyers. Let’s start at the beginning: I received a call from a guy who was looking to sell his house and looking to sell quickly. I came out, met with him, talked to him about the home’s value and what we thought the home could sell for.  I ended up bringing him an offer and he was ecstatic. We got the home under contract with a cash buyer and were ready to close. The next morning, I get a phone call from this gentleman and he tells me, “I think I messed up.” It turns out that after we had already accepted the first offer, he called another person who was interested in the house to tell them it was no longer for sale. That person then told him that he couldn’t do that because he had already agreed to sell the home to this other gentleman.  It turns out that he had signed a contract without knowing it was actually a contract. At first, I wasn’t sure that it truly was a contract from a legal standpoint, but he did sign a piece of paper that agreed to sell his house for a price that was lower than what our cash buyer offered and a closing date that was much longer in the future than he needed. “This story shows why it’s so important to work with a professional agent.” At the same time, the “contract” was missing some components, so I took it to our attorney. She said that although this was a really terrible contract, it was a legally binding one. If he broke the contract, he was liable to get sued. We ended up terminating the contract with our cash buyer and told him to reach back out if anything changed. The moral of the story is to be careful about everything you sign. When you’re selling an asset as large as your home, caution is the key. Unless you’re a real estate professional yourself, you should be hiring one to assist you with the sale. I know the market is good right now, and you may think you don’t need any advice or expertise in order to sell for top dollar, but there are always people out there looking to take advantage of you. Having an agent on your side will ensure that you’re protected. The potential legal headaches are just not worth it. If you have any questions for us about selling your home, buying a home, or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.  

These are two great options for homebuyers who need to sell first. Many homebuyers face the dilemma of needing to sell their current home before they’re able to purchase their new property. What’s the solution? I have two of them: 1. If you need the equity out of your home to purchase your next one, we have teamed up with an institutional buyer who will purchase the house you choose with cash for you if you qualify. They’ll allow you to move in, get settled, and then we can sell your old house. Once you’ve sold your house, they will sell the house that they bought in cash to you. If this is an option you want to explore, reach out to us and let us know. This option makes you a much stronger buyer, which is key in this market where there are a lot of multiple-offer situations. “Using our institutional buyer strengthens your offer because they’re paying in cash.” 2. If you’re comfortable owning two homes at the same time, you can recast your mortgage into a new home. You will find the new home, buy it with a smaller down payment, then once your house sells, the lender will allow you to take your equity and put it on your new home to reset your payment. This allows you to have a monthly payment that you would’ve had by putting a larger down payment on the house. If you’re in this same situation, we’d love to help you out. Give us a call or send us an email today if you have any questions at all about buying, selling, or the real estate market in general.

Here’s some great advice for homeowners who are in mortgage forbearance. This past year was a rough one for all of us, but now hopefully we’re seeing the light at the end of the tunnel. Today I wanted to talk a little bit about mortgage forbearance, or the delayed mortgage payments that were offered to homeowners back in March when COVID-19 hit and the CARES Act was passed.  It’s unclear whether lenders will require a lump sum payment at the end of forbearance or whether that amount will be added to the loan balance.  It seems that it will be added to the loan balance in most cases “The longer you stay in forbearance, the longer your balance will rise.” If you’re in a situation where you do have to pay that lump sum, you need to be making plans to either pay it off or sell your home before it’s due.  If your balance is going to be added to the back end of your loan, then you’re probably going to be OK if you can start making those payments again. As long as you have a plan to make those payments, you’re in good shape. If you don’t, you need to explore your selling options to at least keep the equity that you already have in your home. To give you an example, let’s say your mortgage payment is $1,000 per month. Each month, that $1,000 is getting added to your loan, and by the end, you’ve added well over $12,000 for the year. The longer you stay in forbearance the longer your balance will keep rising. If you have any questions for me about your situation or real estate in general, don’t hesitate to reach out via phone or email. I’d love to help you, your friends, coworkers, and family.

Here’s how to handle the selling of a rental property with an active lease. A few investors have asked me recently: “Can I sell a property when it’s leased?” The answer is yes, but the lease goes with the property. The buyer of that leased real estate inherits that lease. If you’re selling in March and it goes through July, the new owner who inherits the lease takes it over through July. The security deposit transfers as well, as they basically step into your shoes as the new owner and landlord. A leased property can be a good situation for a buyer. They’re stepping into a situation where they already have cash flow right off the bat. Some buyers like that.  “This can be the perfect situation for the right buyer.” On the flip side, investors are looking for the best deal while a homeowner might be willing to pay a little more. Do you sell with a tenant in it to another investor or wait until they move out and sell it on the open market? That depends on your specific circumstances and goals. If you have any questions about your situation, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are five excellent reasons to invest in real estate this year. Here are five reasons why it’s a good idea to consider purchasing investment real estate in 2021: 1. Interest rates are incredibly low. We’re seeing investment loans right now fetch a 3% interest rate on a 30-year fixed mortgage. That’s very cheap money and will give you more cash flow as an investor. 2. Home prices are appreciating rapidly. Last year, we saw prices go up around 8% to 9% in Athens alone. If you purchased a $200,000 home last year, it should be worth around $216,000 today. If you put $50,000 down, that’s a 32% return on your investment (your down payment) in just one year. And that doesn’t include the monthly cash flow you’ll receive from the property and the depreciation from your taxes. “When inflation happens, your real estate assets will go up in value.” 3. Rental rates are increasing. There’s a big demand for rental properties in this area because rent has skyrocketed in the last few years. If they continue to rise, your cash flow goes up while your interest rates and payment stay the same. 4. It’s a hedge against inflation. In my opinion, as more money is printed and produced, we should see some inflation. We might not see it in a year, but we will in five to 10 years. When inflation happens, your dollar will buy less, meaning houses will go up in value in relation to the dollar. 5. It’s better to buy sooner than later. As a general rule of thumb, when you look at successful real estate investors, they grow their wealth over time. Think back to when your parents or grandparents bought their first house and the difference between what it was worth then and what it’s worth now. While both land and houses will likely appreciate, properties that are rented will produce cash flow each month which means tenants will help pay for the property. If you have any questions about buying a rental property or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s why interest rates play a big part in your purchasing power. I’m sure you’ve heard all the chatter lately about low interest rates. The truth is, they’ve been very low ever since COVID hit. In any case, this brings to mind an important question for homebuyers: How big of a deal is it if interest rates drop a full percentage point? To answer that, let’s look at the numbers.  Keep in mind, the following examples represent principal and interest payments only. They don’t include taxes and insurance, so don’t take them as gospel when you meet with your lender. “From a budget standpoint, the lower rates are, the more house you can afford.” Now, let’s say your mortgage budget is $1,500 per month. If you buy a home at that budget at a 3% interest rate, you can take out a loan of roughly $355,000. If rates climb to 4% for that same payment, you can only take out a loan of roughly $314,000. If rates climb further to 5% (which is where they were only a couple of years ago), your loan maximum would drop to $279,000. If that’s not a big enough difference, some buyers are getting rates as low as 2.75%. If you can secure a loan at that rate, your borrowing power would jump to $367,000. Between 5% and 2.75%, there’s almost $100,000 worth of difference.  If you can’t afford $1,500 per month and your budget only extends to, say, $1,300 per month, here’s how the scale changes: 3%: $237,000 4%: $209,000 5%: $186,000 Last year at this time, rates were pretty close to 4%, so if rates are 3% or 2.75% now, you can borrow anywhere from $237,000 to $245,000. The bottom line is that from a budget standpoint, the lower rates are, the more house you can afford. Part of the reason we’re seeing home prices increase is that buyers’ purchasing power is increasing.  So yes, interest rates do matter. You can afford more of a home now than you could last year specifically because rates are lower. If you wait a year to buy and rates increase, you’ll be able to borrow less money each month. That being said, economists predict that rates will stay low for a long time, and if they drop even further, I believe we’ll see prices rise concurrently.  As always, if you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to help you.

Here’s why real estate always makes for a stellar investment. I understand that owning an income-producing rental property is not for everyone, but there are some pretty strong reasons everyone should at least consider it.  Think about this: How does the median sale price of homes 20 years ago compare to the median price today? If we had bought houses back then and rented them out, where would our investment be at today? How would it compare to someone who had put that same amount of money into an S&P fund at the same time? As I demonstrated via infographic at a recent investment workshop, the returns on real estate would be more than double that of the stock investment fund. It’s basically the equivalent of having purchased four houses at a median price point 20 years ago.  Even when factoring in the big dip of the Great Recession, the numbers show that you’d still be better off today had you made a real estate investment as opposed to an investment in the stock market. If you’re skeptical about that, feel free to reach out to me; I’d be glad to show the math to back it up. “Equity growth is what enables you to outperform the stock market with a real estate investment.” Furthermore, property management is a cinch these days. Just turn the care of your property over to a group like ours, get the deposits, track that awesome appreciation, and don’t worry about the rest. Tax benefits are also another great reason to invest in real estate. You can write off any interest if you financed your property, as well as depreciation (I won’t get into that here, but again, I’d be happy to discuss the details with you).  Let’s say you purchase a house with 20% down. Over time, the tenant pays rent, which you use to make your monthly mortgage payments. That means your debt is decreasing while the value of the property is increasing, which means your equity position is strong. Equity growth is what enables you to outperform the stock market with a real estate investment.  Lastly, my favorite thing about real estate is that it’s not a “wait  and accumulate” strategy—it’s a dependable cash flow into your bank account every single month.  If you’ve given all these points consideration but don’t know where to get started investing in real estate, or you have questions about anything I mentioned here, please give me a call or send an email. I’d love to talk things out with you to see whether real estate is the right move, and if it is, what approach you should take moving forward. I look forward to hearing from you!

Here’s why both buyers and sellers should be excited about our market. When you hear agents say, “It’s a great time to buy and sell,” you’re probably wondering, which is it really? How can the market be good for buyers and sellers at the same time? Here are some numbers that prove why our unique market conditions truly make this a market where you have advantages as a seller and a buyer. Why is it a good time to sell? For starters, prices are as high as they’ve been in a long time. In Athens/Clarke County, the average sale price of $263,000 is up $15,000 from where it was in 2019. Back in 2014, the average sale price was $173,000. We’re up $90,000 from that point. “Lower interest rates equal lower monthly payments.” As a buyer, your first instinct would probably be to not buy if prices are climbing like this. However, you have the benefit of low interest rates. Housing is more affordable this year than last year, even at higher prices. Lower interest rates equal lower monthly payments on your mortgage. Let’s say you were going to get a $300,000 mortgage to buy a home at 4%, where rates were last year. Your principal and interest would cost you $1,432 per month on a 30-year term. Now that rates have dropped to under 3%, that same payment for the same loan would be $1,264 per month or less. That monthly savings of $168 truly adds up over 30 years. To put it a different way, let’s say you could afford a payment of $1,500 per month. At a 4% interest rate, you could get a mortgage of up to $314,000. At a 3% rate, you could go all the way up to $355,000 with the same $1,500 payment. That gives you a little more than 40% more purchasing power. Now you can see why we are telling the truth when we say that it’s a good time to both buy and sell, at least in fall 2020. If you have any questions about buying or selling a home, don’t hesitate to reach out via phone or email today. I would love to hear from you.

If you’re a first-time buyer intimidated by the process, don’t fret; it’s easy as one, two, three. Despite popular belief, a big down payment isn’t necessary to buy a home, so long as you have the following three things:  1. Income. If a buyer has a stable or some sort of steady, dependable income, then very likely they’ll qualify for a house. The amount of that income, of course, will dictate how much house the buyer can afford.  2. Good credit. If a buyer has great income but bad credit, they’re simply not going to qualify for a home purchase. The only way you’ll be able to buy a home with poor credit is if you pay for it fully in cash (though nine in 10 homebuyers will require a mortgage).  “A great agent will represent your best interests and help you negotiate any repairs that may be needed.” 3. A great agent. In this market, there are a lot of inexperienced agents out there who receive very little guidance from their brokers. There’s nothing wrong with new agents—I was once one myself. But if you’re seeking the best advantage as a buyer, and expect to negotiate the best price for the home you desire most (perhaps you just need expert help locating that elusive, perfect-fit home), a top agent will get it done.  A great agent will represent your best interests and help you negotiate any repairs that may be needed. Whether it’s someone on my team or an agent with a different group, I can’t overstate the importance of having professional help in the home-buying process.  If you have additional questions about the information covered in today’s message, or are thinking about buying or selling soon, feel free to call or email me. I would love to speak with you.

From new flooring to fresh paint, I’m covering the five things sellers need to consider before listing their home. Here are five things to consider doing before you list your home on the market this year:  1. Clean your house. Buyers never want to walk into a dirty house; yours needs to look and smell fresh. Get dirt and dust off of the baseboards. Even if you’re working with an outdated house, cleanliness is such a simple quality that goes a long way.  2. Maintain the yard. I’ve seen plenty of neglected yards with haphazardly cut grass, untrimmed bushes, and half-raked or unraked leaves revived by the professional touch of a landscaper. It’s unbelievable how much this impacts curb appeal. Whether it’s replacing bushes or planting new grass, take steps to ensure your lawn looks great.  3. Paint to freshen things up. Though a tad more expensive than yardwork or a deep clean, the bang-for-your-buck aspect is huge. New paint breathes new life into a home’s interior, and it creates an inviting atmosphere for buyers. If you have nicks or dings on your walls, or if your wall color is what some might call “wild,” consider allocating some time and money toward painting.  4. Address your flooring. If your carpet is old, worn, dingy or a type of dirty that just can’t be cleaned, 99 times out of 100 it’ll be worth it to change it out. For a little bit more money, you could opt for some wood laminate flooring, which is popular with buyers. It’s fourth on our list of priorities, but if you have the budget for it, definitely do it.  5. Making updates of any kind. This is sort of a catch-all and can mean updating things in your kitchen (e.g., cabinetry and countertops), or your bathrooms. It can be hard to know when you should draw the line on updating your home. That’s why we offer professional counseling for our sellers to help answer the tricky question of “What’s worth doing, what’s a bad investment?” Sometimes, updating half of a room can make the older half stand out more; depending on the situation, you may be stuck choosing between going all in or not going in at all. If you do go all in, though, it will increase your sale price.  Approaching each of the five tips with the right mindset can lead to a quicker home sale that nets you more money. Feel free to reach out to us if you have any questions regarding this topic. We’re here to help.

Though some numbers were down, the latest stats for May show strength. Here are the numbers you need to know for May: Residential Sales for Athens and Surrounding Counties (May 2019 | May 2020):  New listings: 556 | 475 (-15%)  Price changes: 152 | 163 (+7%) Under contract: 420 | 330 (-21%)  Back from under contract: 35 | 24 (-31%) Sold: 412 | 269 (-34%)  Average sales price: $261,356 | $265,666 (+2%) Median sales price: $219,350 | $241,900 (+10%) Average days on market: 66 | 58 (-12%) Median days on market: 22 | 21 (-1%)  “Homes that are selling now are doing so at a higher price.” Overall, it’s fair to say there’s an interesting dynamic in our market right now, but the market is strong nonetheless. The most attention-grabbing statistic is the number of properties sold, which was down by over one-third. The important footnote, however, is that if a home closed in May, chances are high that it went under contract in March or April—the period when we entered the COVID-19 crisis in earnest. The shelter-in-place orders and sweeping shutdowns that went into effect two months ago took a toll on May’s sold numbers. I anticipate we’ll see these numbers rise steadily as more and more people feel comfortable with coming onto the market and things slowly start reopening.  Many people would expect the number of properties back from under contract (meaning a deal fell apart and the home went active on the market again) would be much higher given the circumstances, but surprisingly it’s down quite a bit from last year. The change in median sales price shows us that the homes that are selling now are doing so at a higher price, often generating multiple offers in the process.  Overall, the market is very strong right now. We’ll continue to update you on any emerging trends we see. In the meantime, for those of you who are thinking about selling your home in the next six months, I’d like to share some good news:  We’ve found that we often get asked a lot of the same questions by sellers concerned about doing things right—especially amid uncertain circumstances. As such, we’ve put together a comprehensive home seller workshop that I’ll be hosting shortly. It’s a free, no-obligation event aimed at providing some helpful information for sellers in our area. We’ll cover the five important variables of a home sale and how manipulating those variables according to your specific situation will dictate how quickly you sell your house and how much it sells for. We’ll also be updating sellers on the most current market conditions.  Sign up at www.housesellinginsights.com. There are limited seats available, so act now.  As always, reach out via phone or email if you have questions about this or any other topic. We’re here to be a resource for you.

Here’s how the COVID-19 pandemic has shaped the future of our market. People ask me all the time lately how the real estate market is doing— specifically, whether prices are rising or falling and whether houses are still selling. Today I have a comprehensive market update to share with you that will provide you with data and may help you gain some clarity. Like any industry, the real estate market is driven by supply and demand, and despite the coronavirus pandemic, there’s still a healthy equilibrium between buyers and sellers. I don’t claim to know what the future holds and the reality is no one knows for sure what the outcome will be. On one end of the spectrum, some are predicting a crash with a long recovery due to unemployment, whereas others are pointing out the differences between the last recession and today and why they think the real estate market will not suffer. Personally, I think both sides make valid arguments. Time will tell. To find out more about these perspectives, check out this video. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety or use these timestamps to browse specific points at your leisure: 0:25 - What’s happening right now? 1:38—Is this a repeat of 2008? 5:35—When is the economy going to recover?  8:59—A business, health, and social science perspective 10:24—Why a recession doesn’t mean a housing crisis  13:01—Homeowners are sitting on tremendous equity  14:39—Wrapping things up As always, if you have questions about our market or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’m happy to help.

If you’re a first-time buyer intimidated by the process, don’t fret; it’s as easy as one, two, three. Despite popular belief, a big down payment isn’t necessary, to buy the home you love, so long as you have the following three things:  1. Income. If a buyer has a stable or some sort of steady, dependable income, then very likely they’ll qualify for a house. The amount of that income, of course, will dictate how much house the buyer can afford.  2. Good credit. If a buyer has great income but bad credit, they’re simply not going to qualify for a home purchase. The only way you’ll be able to buy a home with poor credit is if you pay for it fully in cash (though nine in 10 homebuyers will require a mortgage).  “A great agent will represent your best interests and help you negotiate any repairs that may be needed.” 3. A great agent. In this market, there are a lot of inexperienced agents out there who receive very little guidance from their brokers. There’s nothing wrong with new agents—I was once one myself. However, if you’re seeking the best advantage as a buyer and expect to negotiate the best price for the home you desire most (perhaps you just need expert help locating that elusive, perfect-fit home), a top agent will get it done.  A great agent will represent your best interests and help you negotiate any repairs that may be needed. Whether it’s someone on my team or an agent with a different group, I can’t overstate the importance of having professional help in the home-buying process.  If you have additional questions about the information covered in today’s message, or are thinking about buying or selling soon, feel free to call or email me. I would love to speak with you.

People always want to know when they should list their house. Some say the best time to do so is the spring, some say the fall, and others recommend the summer. What’s the truth? I don’t think there’s a wrong time to sell a house, but I will say certain periods are more or less active than others. Generally, spring and summer are when the market is most active; fall and winter are a bit slower. “If you’re on the fence about listing your home, now’s the time to do it.” The difference is that in the fall and winter, there aren’t as many buyers out in the market, but there also aren’t as many homes on the market. In the spring and summer, there are plenty of homes on the market as well as buyers, so in the end, it works itself out. If you want to have your home on the market when most buyers will be looking, home sales seem to peak each year between April and June. Many people think that they should wait until their kids are out of school to list their homes, but by doing that, you could miss some of the prime buyers that are in the market before then. If the majority of buyers are closing in June, that means the majority are going under contract in March and April. If you’re on the fence about listing your home, now’s the time to do it. Don’t hesitate to reach out to me with any questions you may have.

To understand how 2019 compared to the year prior, we’ll look at some of the numbers from Oconee and Clarke counties, where 75% of our business comes from, and then glance at Athens and other surrounding counties. Bear in mind that we will factor in only single-family housing units—no multifamily units or land parcels.  Here are the stats for Clarke County (2018 | 2019):  Home sales: 1,493 | 1,522 Average sales price: $215,371 | $228,275  Days on market: 80 | 51 Homes in Clarke County are selling faster and for more money. If this trend continues, things will only become more expensive for those buyers waiting to pull the trigger. Sellers will continue to face more competition.  Here are the stats for Oconee County (2018 | 2019):  Home sales: 634 | 627 Average sales price: $370,874 | $392,000 Days on market: 131 | 72 Similar story: Homes are selling quicker and at a higher price. Is it any different for the surrounding counties? Well, if you consider Athens and all of the surrounding counties together, here’s how things look (2018 | 2019):  Home sales: 3,086 | 3,064 Average sales price: $242,985 | $260,248 Days on market: 101 | 57  So, though the specific numbers are different, it looks like there’s a similar trend throughout our entire area. Prices are rising by about 6% to 7%, and significant decreases in days on market—over 40%. Despite this, roughly the same number of transactions are taking place, so the demand is still there.  If you have further questions about our market or real estate in general, please feel free to contact us via phone or email. We would love to help you.

Now that we’re already into February of 2020, a new year and a new decade, how much has the Athens area real estate market changed in the last 10 years? My team and I compared the data from 2009 and 2019, and the results are pretty amazing: Homes sales increased from 2,048 to 3,782 Bank-owned sales decreased from 657 (meaning 32% of all 2009 homes sales were distressed sales) to 55 (1.5% of all sales in 2019) The average sale price increased from $166,533 to $264,268 The average days on market decreased from 195 to 60 days “If that average sale price increase is not a case for homeownership and real estate investment, I don’t know what is.” Here’s one more stat to think about: In 2010, 1,935 homes sold, and 40% of those were bank-owned sales. This makes sense when you consider that we were still in a recessionary period back then.  As you can see, we’re in a completely different market and economy now. If that average sale price increase is not a case for homeownership and real estate investment, I don’t know what is. What changes are in store for our market this decade? I anticipate that real estate will continue to increase in value, and the way we shop for and view real estate will change as well.  If you have more questions about how our market has evolved in the past decade or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.

Major missteps in the home buying process can come at a high cost—that could mean losing thousands of dollars or, worse still, making a bad purchase. In particular, there are two mistakes buyers are often tripped up by:  Mistake No. 1: The buyer goes directly to the listing agent and makes an offer. On its face, this might not seem like much of a mistake, but at the outset, that same listing agent signed an agreement with the seller to represent and negotiate on their behalf above anyone else’s. As the buyer, who has YOUR best interests in mind?  A popular myth that some buyers fall prey to is the notion that, by going through the listing agent, they’ll pay less commission and get an unbeatable deal on the home. This simply isn’t true.  This is how it really works: When a seller hires a listing agent, they agree to pay whatever their fee is. In turn, the agent will usually offer half of that payment to another party who might be representing a buyer in an effort to get them interested in the property.  This cooperative effort allows for better service to the community and is a win-win scenario for all parties involved. Otherwise, that listing agent pockets the whole fee, and you’re putting yourself at a huge disadvantage as you prepare to make a purchase. “With our team, you’ll be glad to know that the buyer’s specialist you speak with works specifically for and with you, the buyer.” Mistake No. 2: The buyer works with the first agent they find; this includes the agent who is the first to return their call, the first they locate online, or the one who turns the key for them. My advice is to explore a little further and find an agent who knows the market inside and out and who will represent you fully and professionally.  Think about it: Because the listing agent will share the commission with your agent, it won’t cost you a thing, and you’ll actually have someone advancing your position and yours alone. They’ll negotiate repairs on your behalf, protect you against losing earnest money, and help you avoid so many other pitfalls in the process.   With our team, you’ll be glad to know that the buyer’s specialist you speak with works specifically for and with you, the buyer. We know how important it is for both parties to have equal representation in the transaction. If you have any questions or are looking for someone to represent you for your buyer needs, please give us a call at 706-621-6085 or visit us online at WoodallRealtyGroup.com. We’d love to help!

Though you may not have thought about them before, these five things can dramatically affect your home sale: 1. Paint colors. If your home has a lot of vibrant, bright colors, that can affect your sale. If the individual hates bright and bold colors, that’s not good. You want to make sure you have neutral colors in your house. Neutralizing this will help your home sell much more quickly. 2. Clutter. If there is too much stuff in the house, it can make rooms look a lot smaller. Your home should be staged properly. “Your home should be staged properly.” 3. Decorations. If your home has a theme or is specifically decorated to your tastes, it may not appeal to the masses and that could hurt you. Your decor and personal items should be as neutral as possible as well. 4. Odors. Whether you have pets, dirty clothes, or something else in your home that gives off a scent, buyers will be turned off by it. You may have gone noseblind to those odors, so make sure you ask someone else to come in to identify any unpleasant odors. 5. Flexibility with showings. You want your home to be shown as much as possible. Keeping it clean and ready is important because the one buyer you deny for a showing might have been the one buyer that was going to buy your house for a great price. Your house will still sell if you ignore these problems, but it will sell for much more money if you’re proactive about them beforehand. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

One of the best ways to gauge our market is by looking to the past, which is why, today, we’re going to be sharing a few interesting statistics from last year’s 2018 market here in Athens and the surrounding areas. As we go over these figures, we will also share how they compare to those from the same time in 2017.  First, let’s start with the total number of home sales. There were 3,540 total home sales in our Athens area in 2018. This constitutes a slight drop from the 3,705 home sales that were recorded in 2017.  The average sale price, however, rose over that period of time—going up approximately 9% from $222,454 in 2017 to $243,854 in 2018.  The average days on market saw a noticeable change, as well. Homes spent an average of 114 days on the market for 2017. Throughout 2018, they spent an average of just 83 days. “One of the best ways to gauge our market is by looking to the past.” What does this all mean? Well, considering the current low inventory, we can surmise that the drop in total sales is a result of this diminished supply. It could also be that our market is beginning to balance out.  As these year-over-year statistics show, the market two years ago was quite a bit different from what we saw in 2018—or from what we’re seeing today. If this trend of rising prices continues, those thinking of buying a new home in 2019 may want to act soon. Sellers, too, should think about taking advantage of the opportunities available right now. Of course, market statistics can vary dramatically depending on your specific area. Since our team does about 75% of our business in Oconee and Clark Counties, we’d like to give you a look into how real estate has developed in those areas, specifically, before concluding today’s update.  In Oconee County, there were 729 home sales in 2017 and 625 home sales last year. The lower price points in that area saw even fewer sales than that.  The average sales price in Oconee, meanwhile, rose dramatically—from $336,590 in 2017 to $371,000 in 2018. Finally, the average days on market in that county dropped from 128 to 105. Clarke County saw similar trends. There were 1,546 total home sales there in 2017 and 1,478 total home sales the following year. Like Oconee County, the average home price rose. In Clarke County, this meant a jump from $197,000 in 2017 to $236,000 in 2018.  In a similar fashion to the other data we’ve covered, the average days on market in Clarke County dropped from 108 in 2017 to 68 last year.  If you have any other questions, would like more information, or are curious about market statistics for your specific neighborhood, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Guaranteed offer companies have been cropping up everywhere lately. You’ve probably heard ads on the TV, radio, or internet from such companies, who claim that they’ll buy your house for cash in a fast, hassle-free transaction.  But is this approach to selling worth it? To tell you the truth, any company claiming to buy your home this way won’t be offering market price. “Our goal is to help guide you toward an informed decision that’s truly best for you.” That said, our team understands that some people would simply rather take this route. So please let us know if that’s the case. We’re in connection with a number of local investors and we would be happy to facilitate an instant offer deal like this. Better still, we won’t try to push you toward one option or another.  We would love to show you what you could earn for your home by pursuing this kind of sale versus what you might get from a traditional listing experience. Our goal is to help guide you toward an informed decision that’s truly best for you.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

What’s going on with mortgage interest rates in our market? Quotes will vary depending on who you talk to, but generally speaking, rates are rising. At the beginning of the year, they were hovering around 4%, but now they’re creeping closer and closer toward 5%.  What does this mean for buyers and sellers? If you’re a buyer, the longer you wait to buy, the more it will end up costing you. The higher rates rise, the more they’ll restrict your affordability. For example, if you qualify for a $200,000 mortgage and rates rise from 4% to 5%, that will increase your monthly payment by $125. Over the course of a year, that monthly payment really adds up. Also, keep in mind that home prices are rising as well, which means that a house that cost $200,000 a year ago may cost $210,000 now.  “At the beginning of the year, they were hovering around 4%, but now they’re creeping closer and closer toward 5%.” If you’re a seller, the same news applies if you plan on buying another house after you sell your current one. Though you might be able to sell your home for more as prices rise, you’ll also have to pay a higher mortgage on your next house. Additionally, some economists believe that prices will eventually level off as rates continue to rise, so that’s another reason you might be better off selling sooner rather than later.  No one knows what the future holds, but that’s where conditions are trending. In general, we’re seeing a bit of a slowdown in our market as we head toward the end of the year, but that’s normal as the season changes. Overall our market is still strong. We still have a shortage of inventory, and homes are still selling. If buyers pull back because of decreasing affordability, however, that might change things.  As always, if you have any more questions about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be glad to help you.

Today I want to talk to you about some of the more expensive things in a home that may need to be repaired or replaced. Buyers are often drawn into homes by a fabulous kitchen or an updated bathroom. While it does cost a lot of money to make a lot of these repairs, they aren’t always necessary. Here are a few expensive home repairs that could greatly affect the price of a home: 1. A roof. Roofs are very expensive. If a roof is near the end of its life, I’ve seen buyers walk away from a deal because they don’t want to have to replace it in the next few years. Oftentimes, buyers don’t even think about this until they get to the home inspection because they’re more focused on cosmetic items. “I’ve seen plenty of buyers walk away from a deal due to an old roof.” 2. Heating and air systems. This is something that will come up during a home inspection as well. 3. Water heaters and other appliances. 4. A weathered deck. You can’t entertain on a deck that’s falling apart. You want to make sure it’s structurally sound before buying or selling a home with one. These are some of the big-ticket items that homebuyers and sellers should be looking at before they finalize their transaction. If you have any questions or need any real estate assistance in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What is radon? Radon is an odorless, tasteless gas that seeps up from the ground and is believed to cause lung cancer. Oftentimes, when someone buys a new home, they want to have it tested for radon. Years ago, very few people tested for radon, and although it has become more common, it is still not common in our area, which is why I want to explain the testing to you today. The EPA threshold for radon is 4 pCi/L (picocuries per liter). It is simple to test your home’s level—a home inspector will leave a test box in your home and it will sit there for two or three days, testing the air. If the results of the test are close to or above four, then you’re in potential danger. If you buy a home, test for radon, and if you discover an elevated level of radon, you will need to install a radon mitigation system. The cost of the system varies from $1,500 to $2,500 depending on who puts it in. “If you do find your dream home and discover that it has a high level of radon, don’t let it stop you from buying it, because it’s a problem that can be fixed.” Usually, homes with basements or slabs are more likely to have higher radon levels compared to homes with crawl spaces because crawl spaces have better ventilation and the gas can escape. A radon mitigation company will bore holes into the slab to create an air pocket and then pipe the gas into a fan that blows it through the top of the house. The fan does make some noise, but usually it is less than what you hear from your dryer vent. So if you do find your dream home and discover that it has a high level of radon, don’t let it stop you from buying it, because it’s a problem that can be fixed. If you have any additional questions about radon or if you’re interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

It’s now September, and if you’re in Clarke County, your tax bills are due in October, and those in Oconee County will have to pay theirs by November. But what do you do with your tax bills if you’ve bought or sold a house this year? If you bought a house earlier this year and you financed that mortgage, the mortgage company will most likely cover the tax bill through your escrow account. The way to know that for sure is to either contact your mortgage lender and ask them if they’re paying your tax bill. If they are, forward that bill to the mortgage company. If not, then you will, of course, need to pay that bill yourself. “If you bought a house earlier this year and you financed that mortgage, the mortgage company will mostly likely cover the tax bill through your escrow account.” You can also find out by looking at your mortgage statement. After looking at your mortgage statement, if you have an escrow account, you should see in your payment breakdown where a portion of it is going toward taxes and insurance. Now, if you sold a home this year and you receive a tax bill for the home sold, forward that bill to the buyer; it’s now their responsibility. When you closed on that house earlier this year, the attorney prorated your tax bill, meaning you gave them credit for the amount of time you were in the house from January 1 through to the date of closing. Through that, you’ve technically already paid your share of taxes on that house. The bill will have your name on it, but it’s not yours to pay. If you have any questions about your tax bill, feel free to reach out to us. We’ll be glad to steer you in the right direction.

As our economy recovers and the market grows stronger, terms like “short sale” and “foreclosure” are used less frequently. Still, many aren’t sure what these terms mean, or aren’t sure what the difference is between the two. A foreclosure occurs when the bank has taken back the property into its inventory. When a borrower falls behind on their mortgage, typically their lender will give them several opportunities to catch up. If they cannot, the bank will foreclose, take back the property, and resell. Georgia law requires a bank to advertise the sale for four weeks, and then hold a sale on the first Tuesday of each month at the courthouse. If the property doesn’t sell, the bank takes the property back into its inventory and hires a local real estate agent to list the home. Unlike the earlier courthouse sale, at this time potential buyers can have the property appraised and inspected before making an offer. “When a borrower falls behind on their mortgage, typically their lender will give them several opportunities to catch up.” A short sale occurs when a borrower is behind on their mortgage and owes more than the property’s current value. With the bank’s blessing, the borrower sells the house for its value and the bank forgives the remaining balance on the loan. This is called a short sale, but it’s often a very long process, as the bank may take a while to approve the sale. If you have any questions about foreclosures or short sales, contact us online at WoodallRealtyGroup.com, or call us at (706) 621-6085.

Today I want to talk about the differences between investing in real estate and investing in the stock market. Which one is better? This depends on who you ask. I may be a little biased, but in my opinion, I would say real estate is a better investment. There are a few reasons that I like real estate better than the stock market: 1. When you invest in a rental property, you receive income monthly. A tenant is going to pay their rent every month, which means that you’ll receive that income every month. 2. There is appreciation with real estate. Most people who invest in stocks invest for appreciation. While we have seen some down times with real estate over the last few years, over a long period, real estate appreciates in the same way. 3. You can use leverage when buying real estate. If you are buying a rental property, most banks will allow you to borrow 80% of the purchase price, so you only have to put down 20%.  “Most banks, if you are buying a rental property, will allow you to borrow 80% of that purchase so you only have to put down 20%.” For example, if you bought a $100,000 home, you would only submit $20,000 as a down payment. Then, you will earn cash flow from whatever is left after your tenants make their monthly payments to the bank. And beyond cash flow, your investment will also grow based on appreciation. If that same $100,000 home were to appreciate by 10% over the next few years, you would essentially have turned your $20,000 investment into a $110,000 payoff.  Unless you are getting that much in returns through the stock market, real estate may be a better option if you leverage through the bank. However, I do understand that many people have an aversion to debt, don’t want to take the risk, or would rather pay cash, and this is okay. When you pay cash for the rental home, you receive the whole rent check. This means that your dividend is higher and you still get the 10% appreciation. Personally, I like real estate. Everybody is different with different situations and preferences. However, if you have thought about investing in real estate, my team and I have rental property and are familiar with rent, what to expect, and how to analyze homes. If owning a rental property sounds like something you would be interested in, feel free to call or email so we can help you. We look forward to speaking with you soon.

You’ve probably heard of earnest money if you’ve ever bought or sold property. But if you haven’t done either, you probably don’t have a good grasp of what earnest money is, how it works, and whether it goes to the buyer or the seller. If you’re in this second camp or just want a refresher, I’ll provide you with a quick rundown today. What is earnest money?Earnest money is the initial, good faith deposit that you put down on a piece of property when you get ready to make an offer. This can be any amount—it could be $1, $10,000, or even $50,000, depending on the size and scope of the deal. The general rule of thumb for our market is about 1% of the asking price. “If you get cold feet and back out at the last minute, then typically the earnest money goes to the seller as liquidated damages for your breaching the contract.” How does it work? When you make an offer on a house and it’s accepted, you’ll make your earnest money deposit out to the real estate brokerage you’re working with. That broker holds the money in a trust account, meaning it’s still your money, it is just sitting in their account. It’s then allocated to an account separate from their operating account. As long as you continue forward with your purchase, your earnest money is applied back toward the down payment on the house. If, for some reason, you get cold feet and back out at the last minute, then most often the earnest money goes to the seller as liquidated damages for your breach of the contract. If you want to do a home inspection to make sure that you can get your loan, we build that feature into the contract to protect your earnest money. Typically, we’ll put in 10 to 15 days for due diligence, which gives you an opportunity to inspect the house and make sure that you want to move forward with the purchase. If you terminate the contract during this due diligence period, the earnest money will go back to you. You’re completely safe during that time. Additionally, if you have a financing or appraisal contingency and your loan isn’t approved or your house doesn’t appraise, you will also get that money back, so long as it was during that contingency window. It’s only after the contingencies are over and the closing date is drawing nearer that the seller would keep the earnest money as compensation for their trouble if you were to drop out suddenly. If you have any questions about earnest money or other real estate topics, don’t hesitate to reach out to me. I’d be glad to speak with you.

Today I want to talk to you about real estate auctions. Is it an option that you want to pursue as a home seller? I will go over the pros and cons with you to help you decide.  In my opinion, an auction is not the best way to sell a house. The general consumer has the mindset that they are going to get a deal from a motivated seller by going to an auction. That means you are going to attract the investor crowd, which is the wrong crowd if you want to sell your home for top dollar. “You do not want to attract the investor crowd if you are looking to sell your home for top dollar.” If you list your home with a professional agent who can give it great exposure and market it effectively, you are getting a much larger buyer pool than just the people who show up on buyer days. I generally do not see auctions (or auction sites) sell homes for top dollar.  Over the last few years, we have seen a low inventory market and more multiple offer situations. With multiple offers, you can create an auction-like effect, but the price you get will generally be much higher.  To get top dollar for your home, exposure is key and an auction is not the way to do that. If you have any questions for me in the meantime, please feel free to give us a call or send us an email. I look forward to hearing from you soon.

How do you approach buying a home and selling your own at the same time? Well, if you have the financial capacity to do so, the easiest option is to purchase your next home before starting the process of selling your current one. This way you can focus on one transaction at a time. However, if this is not something that is feasible for you, no need to worry. You still have options.  So, what can you do if you need to use the proceeds from selling your current home to fund the purchase of your next? Today I will outline how to approach this scenario. Most of the time, you would close both sales on the same day. This involves putting your home on the market and, in the meantime, search for homes until you are under contract. Then once you are, you can begin to submit offers. Sellers who can see that you have a buyer lined up will be more likely to accept an offer that is contingent upon the sale of your home. “Sellers who can see that you have a buyer lined up will be more likely to accept an offer that is contingent upon the sale of your home.” Including this contingency protects you from ending up with two houses. It will allow you to back out of your home purchase if your home sale falls through.  Yet, switching homes in a single day can present some logistical complications related to the move itself. Most clients my team works with will resolve this by storing items prior to their moving date so that they can easily be transferred to the new home. However, another way you can resolve complications with the moving process is by negotiating for possession of the home you are purchasing prior to closing, or for possession of the home you’re selling after closing. This will give you a buffer period to make your move. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Home inspections. Why are they important?  While most homebuyers today see the value of a home inspection, there are still people who would rather save money and not do a home inspection. This is why I would like to talk to you today about why they are important and what they do. When you go under contract, you typically have one to two weeks to hire a home inspector to come in and evaluate the house. They can charge anywhere from $300 to $500 depending on the inspector, the size of the home, and what the inspection entails. In my opinion, it is a very important piece of the equation. Unless you are completely home savvy and know everything possible about houses and can do the inspection yourself, I recommend hiring a professional home inspector. Sometimes people choose to use a family member or friend, but that person may not look at homes every day like a professional home inspector does. “A home inspection gives you a top to bottom inspection where they look at plumbing, electrical, the exterior of the home, the foundation, the attic, the appliances, etc.”A home inspection gives you a top to bottom inspection where they look at the crawl space, plumbing, electrical, the exterior of the home, the foundation, the attic, the appliances, etc., to inspect for any problems. This does a couple of things for you, including letting you know exactly what you are buying. If there are problems, you can either take care of them after you purchase the home or inform the seller of them. Oftentimes you are able to negotiate with the seller to remedy any problem areas before closing so that it is not an issue for you. If you are buying a house that is $200,000 or $300,000, in the grand scheme of things, an inspection for $300 or $400 is a small price to pay for the peace of mind of knowing what you are buying. If you have any further questions about inspections or are interested in buying or selling, please feel free to contact me. I would be happy to help you.

How do you manage to still live comfortably in your home while it’s listed on the market? Today I’d like to tackle this key question. Keeping a home clean, organized, and show-ready can be a daunting prospect for sellers. These tasks are vital to earning top dollar, but are not easily accomplished while also juggling the matter of a move.  Thankfully, there are a few simple tips you can follow to ease this predicament.  1. Price your home competitively. Pricing too low could result in you leaving money on the table, but overpricing could also cause major issues. An overpriced home will often sit for months on the market, which equates to months of keeping your home spotless and show-ready as you wait for willing buyers.  “Keeping your house in a generally clean and organized state will save you significant hassle while it’s listed on the market.” 2. Hire an agent with an aggressive marketing plan. The more showings you can have on the front end, the more successful your listing is likely to be. So an agent who can create a high level of exposure will be essential to achieving a quick sale. Getting several potential buyers through the door will also present a great opportunity to receive and address feedback in the event that there’s anything about your listing that may deter people from submitting an offer. 3. Do your best to maintain the home’s condition. Most of the time, you will have at least a day’s (or half a day’s) notice before a showing. This should give you adequate time to tidy up, but keeping your house in a generally clean and organized state will save you significant hassle while it’s listed on the market.   If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I just wanted to say a few words about “get-rich-quick” real estate seminars and how you should view them. There are some great seminars out there about how to flip houses and sell real estate. I’ve been to many in the past. However, here’s my rule of thumb: If it sounds too good to be true, it likely is. A lot of these “gurus” will tell you that you’ll be making $50,000 a month in real estate. Maybe it is possible with the right person, but I don’t know anyone that’s doing that. “There is a lot of behind-the-scenes training and knowledge that goes into a profitable transaction.” Now, you can make money in real estate by investing. You can buy a home that needs work, put some repair money into it, and sell it for a profit. You can make good money doing that. However, you can lose a lot of money doing this if you don’t know what you’re doing. I think what a lot of these people fail to teach you is that there is a lot of behind-the-scenes education and knowledge that goes into these transactions. Just as easily as you can make $20,000 on a home, you can lose $20,000. It’s a risky venture, but there is reward there. Can you make money by investing in real estate? Yes you can. Can you get rich quick by doing it? Probably not as quick as you think. If you’re interested in buying or investing in a property anytime in the near future, give me a call or send me an email. I would be happy to answer any questions you might have.

One question people often ask us is, “How long does it take to go from contract to close?” Basically, there is no one-size-fits-all answer. The length of time between contract and close is negotiable like everything else in the transaction. However, the average length of this period tends to be between 30 and 60 days. If you’re making a cash purchase, though, the process can be sped up to around two weeks. “The length of time between contract and close is negotiable like everything else in the transaction.” Buyers who plan to make their purchase using a loan should plan for a longer period of time between contract and closing.  If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Today I want to talk to you about how to properly choose a home inspector. I think we can all agree that a home inspection is essential when you buy a house. It’s a small investment that lets you know everything you need to know about the house—the good, the bad, and the ugly. We always recommend one. However, how do you choose the right inspector? Over the last few years, we’ve seen a lot of new home inspectors enter the business. Just like real estate agents, some of those inspectors are going to have more experience than others. Some will do a better report, or have better systems for finding problems. It’s important that you have a home inspector that is going to shoot you straight, give you the detailed facts, and be professional. You don’t want an inspector that will be too critical or too soft. It’s about finding a good balance. “I recommend leaning on your real estate agent for advice.” When you’re looking for an inspector to hire, my recommendation is to lean on your real estate agent for advice. They will know who is a good inspector and who isn’t. Agents work with these inspectors day in and day out and they know who the best option is. If you have any questions for me about home inspections or anything else, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to talk to you about what to do if you find yourself with multiple offers coming in as a seller. With low inventory over the last few years, we’ve been seeing this situation occur much more frequently. How do you get yourself in position to receive multiple offers? It starts with us doing a very throughout market analysis on your home in order to attract the highest level of interest possible. Once you have multiple offers, how should you go about choosing which one to accept? Obviously, there are a few factors you need to key in on. The first is price. We want to break down each offer and see which one will net you the most. “A cash deal is much more likely to close.” Secondarily, if we have some offers that are very close in price, we will take a look at the terms. Is it a cash deal or financed deal? A cash deal is much more likely to close. We don’t have to deal with appraisals, lenders, or anything else like that. Other important things to look at include the number of days of the due diligence period, the earnest money amount, and any other contingencies that might be in that offer. We have to weigh the whole offer, look at all sides, then help you make the decision on which one is best. If you’re looking to sell your home, I’d be happy to help you get started on the path to multiple offers. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Inventory has been down over the past couple of years, meaning that multiple offer situations have become common. So, when you aren’t the only buyer looking to purchase a certain home, how can you make your offer stand out? The stronger you come in from the beginning, the better, but in multiple offer situations, this isn’t always enough. There are few things you can do to increase your odds when competing against other buyers: Keep your due diligence short. If you can get your home inspection and other due diligence done in a timely manner, your offer will automatically stand out to the seller.  Make a cash offer if you can. Cash offers with no financing or appraisal contingency are very attractive to sellers. If you’re unable to pay in cash but are confident enough in your financing to forgo an appraisal contingency, this is another way to give your offer a leg up.“In a good offer, strong terms are as important as a strong price.” Offer the highest price you’re willing to pay.A solid price is essential to a good offer, but it isn’t the only thing that matters. If another buyer makes an offer that is slightly lower than yours but is in cash, they may have the edge. In a good offer, strong terms are as important as a strong price. Make a high earnest money deposit. Putting forward an earnest money deposit with a high dollar amount will show sellers how serious you are. Keep in mind that during your due diligence period, your earnest money is completely refundable. If you move forward, though, this deposit goes toward your down payment. So, in either case, you and the seller both benefit. If you have any other questions, would like more information, or want to discuss your plans to buy a home, feel free to give me a call or send me an email. I look forward to hearing from you soon.

There are five common mistakes that sellers make when they hire a listing agent, and I wanted to bring them to your attention today. 1. They hire the agent who quotes them the highest price. Remember, we’re not the buyer, so we’re not going to quote a price for your home; we’re simply the agent who is going to market your house. When an agent wants to win a listing, sometimes they will quote a price that’s higher than the market value. This price is often completely unrealistic, but the agent knows that they will get to put a “For Sale” sign in your yard. Buyers will start calling the sign and the agent will get new leads, knowing that down the line, they can suggest a price reduction. Remember, homes that are priced properly to begin with sell faster and for more money than overpriced homes. I have some local studies that support that statement if you would like more information. 2. Hiring an agent just because they are a friend or family member.This isn’t always a bad thing, because you obviously want a connection with your agent. Still, it’s important to do some homework to find out if they are a top-producing agent. Sometimes, these agents might have just gotten their license or only sell three or four homes a year. If that’s the case, then they are not the best person to market your house to get top dollar. It’s fine to hire a friend or family member; just make sure they are a qualified real estate agent first. “Homes that are priced correctly from the start tend to sell faster and for more money.” 3. They view all agents as being equal. I’ve been in this industry a long time, and I can tell you that not all agents are equal. Some are part-time agents. They may have the same licenses as I do, but they don’t do the same marketing, offer the same service, or have the same expertise as I do. You have to do your homework on the agent’s background and statistics to find out what they are about. You want to find the agent who will get you the most money for your house and give you the best service and expert advice along the way. 4. They are in too much of a rush. Sometimes, you might only be in town for a day. If you didn’t plan ahead, you’ll need to meet an agent right away. If you hire the first agent who’s available, you probably won’t end up with the best agents. The agents who are available at a moment’s notice don’t have anything else going on. They might be a newly licensed agent or a new agent on a team who got stuck with taking all the phone calls. You need to plan ahead and hire an agent who has a lot of other clients. These agents are more experienced and are in the market every day, so they will be better able to help you buy or sell a house. 5. They don’t do their homework.I’ve mentioned it a couple of times already, but you have to research an agent before you hire them.  Check out their reviews on Facebook, Google, or Zillow. If an agent only has two or three five-star agents, keep looking—they might have asked a couple friends to leave them a review. Find an agent with an extensive history and a lot of good reviews from a number of clients over a long period of time. As you can see, it’s important to avoid these mistakes if you want to sell your home quickly and for top dollar. If you have any other questions about selling your home or real estate in general, give me a call or send me an email. I would be happy to help you!

How do you choose a good mortgage lender who will look out for your best interests? In recent years, more and more buyers turn to the internet to seek out these professionals. Homebuyers think they will be able to find the deal best this way, so they choose an online lender, get pre-approved, and start searching for homes. This is all well and good. Some online lenders do a fine job, but the majority of them aren’t familiar with our local market, our appraisers, or our attorneys. The process is therefore bogged down. A major problem buyers run into when working with online lenders is that they sometimes aren’t ready to close on time. This creates chaos for everyone involved in the transaction. “You should always work with a local lender.” Buyers may think they are getting a better deal when working with a lender online, but the reality is that this is rarely the case. My team and I always recommend that you work with a local lender. Your agent should be in contact and have leverage with lending professionals in your area who they can refer you to. The lenders we work with know that if they don’t give our clients the best deals possible, we will find new people to work with. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

More and more people want to invest in real estate these days. In today’s market, is it better to fix up a property and flip it, or to hold onto that property, either to live in or rent out? Honestly, it depends. What are your goals? If you’re looking to make some quick cash, then flipping homes is probably a better strategy. You can move a property and see a profit within a few months. The biggest downside to this strategy is that you will be taxed on this quick income exactly as if it were part of your regular annual income. If your goal is a long-term investment, then holding on to the property may be a better strategy. When you buy and hold property over a period of time, its value will typically appreciate over a period of time. Note that the market is not always predictable, and it will expand and contract occasionally, so property values will rise and fall, but over the long run, values trend upward. “Property values fluctuate with the market, but rental properties produce a stable, monthly income regardless of the property’s market value.” Looking back at market values from 20 to 30 years ago, and it’s clear that prices have gone up! In addition, rental-income on property owned is an excellent investment strategy. Real estate that is cash flow producing for you will pay you every single month. By obtaining financing, you can leverage your investment to get a higher return on your down payment. If your strategy is long term, it’s definitely better to buy and hold and rent that property. Let it pay you every single month. If you do have a loan on it, the balance will go down every single month, which means you owe less and less. When it’s paid off, you own that asset free and clear and it continues to put money into your account every single month. If you need quick cash, flipping can be a good option. Again, it all depends on your goals. Honestly, many smart investors combine these strategies. They may do a quick flip to get enough capital to make a long-term investment, for example. If you have any questions about this or help with any other real-estate questions, just give me a call or send me an email. I would be happy to help you!

Today we discuss the availability of deals on foreclosure homes and why they’re harder to find than in years past. Looking to sell a home in Athens, Georgia? Click here for a Home Price Evaluation Looking to buy a home in Athens, Georgia? Click here to perform a full home search Today I’d like to talk to you about the topic of foreclosures and about whether or not there are still good deals available on foreclosures. If you’d asked about foreclosure deals four or five years ago, I would have said there were tons out there, and half of what sold at the time were foreclosures. However, in today’s market, it’s a little bit of a different story. Foreclosures are becoming harder to find. The ones that are out there, if they’re priced-well, are receiving lots of interest and likely have multiple offers thrown at them. Investors and homebuyers are bidding those prices up. It’s harder to get the deals on foreclosures now than what we saw a few years ago: Is this a good or a bad thing? “IT’S HARDER TO GET THE DEALS ON FORECLOSURES NOW THAN WHAT WE SAW A FEW YEARS AGO” If you’re looking for a deal, it’s a bad thing because of how hard they are to find. In the grand scheme of the economy and the real estate market, however, it could be seen as a good thing. It shows that the market is improving, prices are rising, and homeowners are no longer underwater like they were a few years ago because the values have increased, which has helped them be able to sell, instead of being forced into foreclosure. We are still working with buyers who are getting great deals on homes, so if you are looking for something, reach out to us. Oftentimes we hear things before they officially hit the market. It may or may not be a foreclosure—it could just be a motivated seller. If you’re in the market for a new home, let us know, and we’ll help you find a good deal.

Downsizing may be a natural and smart choice to make, but that doesn’t make it easy. There are a lot of things to think about. Looking to sell a home in Athens, Georgia? Click here for a Home Price Evaluation Looking to buy a home in Athens, Georgia? Click here to perform a full home search Today I want to talk about the topic of downsizing. When the kids leave the nest and it’s just you and your partner left, you may start wondering why you’re still staying in such a big space. When you no longer need a large home, the natural option is to downsize. However, even once people no longer have a need for such a large space or so many items, it can still be hard to adjust to change. People grow used to living a certain way, which makes downsizing difficult. Going from a 4,000 square foot house to one of half that size means that half of your personal items will have to go as well. This is something a lot of people have difficulty with. It’s important to realize that these are the kinds of things you’ll need to be thinking about. The idea of downsizing is good and smart, especially since it sometimes helps people to become debt-free, but it isn’t as easy as many people think. “WHEN YOU NO LONGER NEED A LARGE HOME, THE NATURAL OPTION IS TO DOWNSIZE.” Another thing that often takes people by surprise is the change in amenities. In a downsized home, the kitchen may not be quite as nice as the one in the previous house. This is just one example. It really depends on what you buy, but it is possible to find a nice, smaller home in a lower price point. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

We just wanted to remind you that if you have a question about real estate, we are happy to answer it. Looking to sell a home in Athens, Georgia? Click here for a Home Price Evaluation Looking to buy a home in Athens, Georgia? Click here to perform a full home search We’ve been fortunate enough to have a very busy year helping a lot of families buy and sell homes in Athens. Although our free time is somewhat limited these days, we always have enough free time to answer any of your questions. We want to be known as the Athens real estate experts, but we also want to be known as consumer advocates. If you have any questions regarding any part of real estate or real estate transactions, let us know. Whether you have a question about buying, selling, investing, appraisals, inspections, or any other real estate-related topic, we’d love to hear it. “WE’RE ALWAYS HERE TO ANSWER YOUR QUESTIONS.” You can give us a call, send us an email, or just come visit us. No matter the question, we will do our best to answer it in a thorough and timely manner. We look forward to hearing from you soon.

We continue to be in a seller’s market, which is affecting how appraisals come in for homes under contract. I’ll explain everything in today’s video. Looking to sell a home in Athens, Georgia? Click here for a Home Price Evaluation Looking to buy a home in Athens, Georgia? Click here to perform a full home search Today I wanted to talk to you about what’s going on with appraisals in the current market. In our last video, we gave you a snapshot of what the market currently looks like from a supply and demand perspective. Currently in our market, we have high demand and a low supply of homes, which is causing home prices to increase. So how is this affecting appraisals for the sellers that we work with? We’ve had more instances this year than in recent memory where we get a home under contract for a certain value, and the appraisal comes in lower than that value. This is a problem. Why are we seeing lower appraisals? Appraisers are looking back over the last three to six months of sales in the area, comparing similar homes to the seller’s, and coming up with their opinion of the value of the home based on those factors, as well as any improvements or updates done to the home. “CURRENTLY IN OUR MARKET WE HAVE A HIGH DEMAND AND A LOW SUPPLY OF HOMES.” In my opinion, the true market value of a home is what the seller and buyer agree on, but the banks have to protect themselves. Because of this, we’re seeing these low appraisals. I still continue to encourage sellers to list their home at a price that is a little higher than the homes that sold recently in the area, especially in this current market. If you find yourself in that situation where the home appraisal is lower than the purchase price, you have a few options to take care of that problem. You can reduce the price down to the appraised value, the buyer can pay that difference in cash, or you can meet somewhere in the middle. Some buyers aren’t willing to pay the extra money, and the low appraisal can kill your deal. If you get a cash offer for your home, it might be worth it to really consider taking that deal. Most cash buyers don’t spend the extra money on the appraisal, so you don’t have to worry about it. If you have any other questions about this topic or there is anything we can do for you, a friend, or a coworker, give us a call. We’d be happy to help!