You are currently browsing the category archive for the ‘Knowledge’ category.
Nancy and I recently made a day trip to Little St. Simons Island with a small group of Sandpipers, which we recently joined. Sandpipers is a social club designed to offer as little or as much activity as a member chooses, from Dining In and Dining Out to several group meetings throughout the year. There are Sandpiper excursions both locally and farther afield and special interests such as book club, bridge, and kayaking.
Little St Simons Island is a private barrier island just off the Georgia coast which is prized for its unbothered natural beauty, gracious hospitality and secluded worlds-away appeal. Our Little St Simons day trip started at the Hampton Marina at 10:30 where we took at 15 to 20 minute boat ride down the Hampton River to Mosquito Creek. When we arrived at Little St Simons we met our naturalist tour guide Ben Morrison. Ben has been working on the Island for the past four years and is very knowledgeable. We got on an open-air flatbed truck with bench seats across the back. With binoculars in hand, we headed out with Ben for a very informative tour of the undisturbed Maritime Forrest. Ben made frequent stops for us to view different aspects of the Maritime Forrest, while he explained the natural essence of Little St. Simons Island. Along the way we were able to spot a bald eagle nesting.
We returned to The Lodge at 1:00 for a hearty lunch of low country southern specialties. After lunch we took off for the beach for an afternoon of shell hunting on seven miles of private beach. We then returned to the Hampton Marina around 4:00 that afternoon. We all experienced what Southern Magazine described, “There are few places on the planet where beaches are without condos, and roads are without cars and night sky are only lit up by the shine of a billion far away stars. If you like that sort of thing, Little St Simons is as close to perfect as any place can get.”
As part of the College of Coastal Georgia’s Founder’s Day Weekend marking the 50th anniversary of the College’s inception, CCG welcomes multi-talented musician Randall Bramblett.
Bramblett will be performing with his band this Friday night, October 21st at 7pm at the St. Simons Island Lighthouse. Bramblett, who is from originally from Jesup, Georgia but now resides in Athens, plays piano, guitar, saxophone, harmonica, mandolin and several other instruments. While Bramblett may not be a household name, he is legendary within music circles for his songwriting and musicianship. He released a pair of acclaimed solo albums in the mid-‘70s, then joined the jazz-rock outfit Sea Level, becoming their principal songwriter and vocalist. From there, Bramblett embarked on a path as a big-league, musical utility man (primarily sax and keys) and landed on the speed dial of some of the greatest names in rock history, including Traffic, Steve Winwood, Levon Helm, Chuck Leavell and Bonnie Raitt.
Admission to the show is $10 at the gate. Members of the college alumni association, students, faculty and staff will be admitted free with valid identification.
Cannon’s Point, a 600-acre tract on St. Simons Island, will become a nature preserve under an agreement between Wells Fargo and conservation groups. The parcel, known as Cannon’s Point, is part of the vast holdings of the Sea Island Co., now owned by Wells Fargo. The property is the last and largest tract of natural undeveloped land on the island. Wells Fargo and the Bobolink Foundation of Chicago, whose trustees include former Treasury Secretary Henry M. Paulson Jr. and his wife, Wendy, will become partners with former Georgia-Pacific chief executive Pete Correll, the St. Simons Land Trust, The Nature Conservancy and community members and groups in the preservation project.
The tract is not only an undisturbed maritime forest, it also contains significant historic sites. In 1796, John Couper moved his family to St. Simons Island to live in a modest one and one-half story cottage that provided a magnificent view of the Hampton River and the distant marshes. The cottage was built by Daniel Cannon, a carpenter of old Frederica. John Couper’s interest in horticulture was reflected in the beautiful grounds of Cannon’s Point. Shrubs, trees and flowers of every description grew in profusion alongside groves of lemons, oranges and Persian date palms. At the request of President Jefferson, Couper imported two hundred olive trees from France, which soon yielded superior quality oil. The Coupers were gracious hosts, and Cannon’s Point was rarely without visitors. It was not unusual for guests to stay weeks or even months: one young couple came to spend their honeymoon on the plantation and stayed until the birth of their second child! Also contributing to the pleasures of a Cannon’s Point visit were the legendary skills of the slave cook Sans Foix, who had no equal on the Georgia coast.
To learn more about the preservation project and planned education center, view the St. Simons Island Land Trust video on YouTube.
Customer or Client: You may work with a real estate agency as either a customer or as a client.Whether you choose to be a customer or a client depends on your individual real estate needs.
The Customer Relationship: If you choose to work with a broker as a customer, they will treat you fairly in the transaction. However, they are not permitted to offer you advice or to act as your advocate during negotiations for the property.
The Client Relationship: If you choose to work with a broker as a client, your agent will always act in your best interest in the transaction. Your agent will offer you advice, will freely share with you his experience, expertise and knowledge, and will act as your advocate during negotiations.
According to BRRETA (Georgia’s Brokerage Relationships in Real Estate Transactions Act), agent duties to a customer or client are as follows:
Customer
Exercise reasonable care
Comply with all applicable laws
Disclose adverse, material facts to all parties
Timely account for all monies received
Timely present all offers to and from parties
Honesty
Perform ministerial acts
Client
Perform the terms of the brokerage agreement
Promote the interest of the client
Confidentiality
Provide limited professional advice
Exercise ordinary skill & care
Comply with all applicable laws
Disclose adverse, material facts to all parties
Timely account for all monies received
Timely present all offers to and from all parties
Honesty
Perform ministerial acts
Important! If you do not have a written agreement with your broker (or agent), you should assume that you are working with the agency as a customer and not a client.
As you’ve read in previous posts, the “bottom” of the real estate market is here, right now! As we’ve also said previously, don’t take our word for it…. click here for an expert opinion. The speaker advises you to buy real estate now. In years past, we’ve owned real for shelter, for investment, and for lifestyle. Today, owning real estate is about opportunity. The opportunity to re-build lost wealth, the opportunity to buy at prices last seen in the 1990′s, and the opportunity to take advantage of artificially low interest rates. If you believe real estate prices will stay this low forever, we advise you to put your money under a mattress. But, if you believe, as we do, that real estate prices are on the way back up, now is the time to act. Like sunrise over the ocean, this opportunity won’t last forever. The bottom never does!
Check out Real Estate Today radio from the National Association of Realtors. This free show, with host Gil Gross, offers credible information on the real estate market and includes expert interviews, field reports, and timely market conditions. Click here to listen.
Deficiency Judgment
The lender may seek a deficiency judgment against the debtor when a property sells at public auction for less than the loan amount secured by the property. If the lender prevails, the judgment obtained will apply to all of the debtors’ remaining real and personal property.
REO Properties
REO (Real Estate Owned) are properties that were purchased by the lender at the foreclosure sale. When a third-party purchases an REO property, the lender is the seller. Because lenders are in the business of financing property, not owning and managing a portfolio, REO properties are generally listed at very competitive prices for a quick sale.
REO properties are sold “as is,” with all faults and as suitable for the buyer’s intended use. The seller will generally not negotiate repairs to the property. When a debtor is not financially able to make his note payments, he likely has not been maintaining the property. Therefore, costly deferred maintenance items may have accumulated, which will require attention from the new owner. In addition, the lender does not usually provide a seller’s disclosure, which is not required in Georgia. Should the lender provide such a disclosure, the lender, not having occupied the property, may not be fully aware of adverse conditions. Lastly, the lender will not warranty the condition of the property. Should the buyer take possession and discover a hidden adverse condition, he will not be able to pursue the lender to rectify the problem.
A thorough inspection of the property by a team of professionals, including, but not limited to, home inspectors, termite inspectors, heating and air conditioning experts, and surveyors, will help protect the REO buyer from adverse conditions. However, in spite of a thorough inspection, unknown or unforeseen conditions may be discovered after completion of the sale.
Title to an REO property is conveyed by a Limited or Special Warranty Deed, rather than by a General Warranty Deed. The grantor warrants the title only against defects occurring during the grantor’s ownership and not against any defects existing before that time. Buyers of REO properties should thoroughly examine the public land records pertaining to the property to identify any title defects.
Foreclosures, REO properties and real estate in general offer one of the best values around! Purchasing real estate at today’s prices provides an opportunity to rebuild lost wealth through appreciation as shrinking inventories poise prices to rise. According to Alan Zibel, writing for the Associated Press in an article published in the Brunswick News on November 24, 2009, “Homes sales nationwide are now up nearly 37% from their bottom in January, although they are still 16% below the peak in autumn 2005. At the current sales pace, there is only a 7-month supply of homes on the market and in some areas there are bidding wars.”
For a limited time, buyers will continue to enjoy the best real estate opportunities in a decade:
(1) Interest Rates Below 5%: Competition for money, including the Federal government’s extraordinary deficit spending, will likely drive interest rates up, and soon. But, for a limited time, rates are affordably low. If you are waiting for prices to drop, stop waiting. A 10% decrease in price is required to offset a 1% increase in interest rates. Increasing prices and increasing interest rates are much more likely.
(2) A Pricing “Do-Over”: On certain properties, today’s pricing is on par with pricing from early 2000. During 2005-06, many of our purchasers opined, “If we had only bought in 2002, look how much we would have made on this property!” Our view is that 2002 has come again, as will 2005-06. If you are smart enough to enter the market now, you can have a “do-over!”
(3) Selection: The choices are plentiful in most price ranges. However, since limited new inventory is being added to the marketplace, these choices will diminish with each passing week.
(4) Demand Backlog: People have deferred important real estate decisions for almost three years, particularly the baby-boomers who plan to retire “south.” Improving market conditions will release this pent-up demand, which will absorb more of the available inventory. Prices will likely rise as demand increases and supply decreases.
(5) Tax Advantages: The federal government continues its support of the housing recovery by expanding the tax credit to more buyers and more expensive properties.
Record numbers of foreclosures and falling home prices have created enticing real estate ownership opportunities. Increasingly, consumers are tempted by pricing on foreclosures and bank-owned properties, which may sell for 30-40% below comparable new homes and re-sales.
While foreclosure prices may be “rock bottom,” prudent purchasers weigh the risks involved before choosing a foreclosure or bank-owned property. Foreclosure is a specialized field. Unless you have foreclosure experience, you need a team of competent professionals to protect your interests in the transaction, including a real estate practitioner with foreclosure experience, attorney, tax advisor, home inspector, appraiser, and a general contractor, if extensive repairs are required.
The Mechanics of Foreclosure
Real estate financing includes two contracts: (1) a promissory note, which is the buyer’s personal promise to pay, and (2) a security instrument, which secures the debt with either the title to the real property or a lien on the title. In Georgia, the lender holds “legal” title to the security property until the note balance is paid fully.
The lender has the power to sell the property if the debtor fails to pay the note as agreed. The lender must publish a required notice of the impending foreclosure sale for four consecutive weeks in the newspaper in the county in which the property is located.
The Short Sale
Prior to the foreclosure sale, the lender may permit the delinquent debtor to sell the property to a third party for an amount less than the note balance.
Application for a short sale reverses the process by which the debtor qualified for the original loan. The debtor must prove to the lender that (1) he has neither the income nor the assets to make the note payments as required, and (2) the property will not sell for at least the amount owed.
Any debtor considering a short sale should seek the guidance of a real estate professional who has successfully closed short sale transactions.
The Foreclosure Sale
Foreclosure sales are conducted on the first Tuesday of each month, between 10AM and 4PM, “at public outcry” on the steps of the courthouse of the County seat where the property is located. During the auction, bids are opened to third-party purchasers. The lender, or his representative, will be present at the sale and will bid for the property if other bidders do not offer at least the amount owed. Interested purchasers may bid against each other and against the lender.
Once the foreclosure sale has been concluded, the debtor’s interest in the property is terminated; Georgia does not provide for redemption of the property following the sale.
Disadvantages of buying property at the foreclosure auction include: (1) not being able to inspect the property or the public records pertaining to the property prior to making the purchase offer, (2) purchasing the property in its present condition without a seller’s disclosure, (3) assumption of unknown liabilities, including unpaid property taxes, and (4) cash or cashier’s check required for payment. All sales are final!
On November 5, 2009, Congress passed a bill extending and expanding the housing tax credit. The bill is awaiting the President’s signature. In order to help you better understand the new legislation, we are posting a comparison chart provided to us by the National Association of REALTORS.
The expiration date for the tax credit will move to April 30, 2010. First time buyers who have not had an interest in a principle residence for three of the past five years are still eligible for the credit, which is still a maximum of $8,000 for married couples and $4,000 for separate filers. A tax credit is now available for homeowners, who have consecutively resided in their primary residence for five of the last eight years. The maximum credit amount is $6,500 for married couples, and $3,200 for those filing separately.
The credit is available for home purchases up to $800,000. Income limits have been raised to $125,000 for single buyers and $225,000 for married couples.
Local market conditions are improving, as purchasers scramble to take advantage of the best buyers’ market in two decades. The expansion of the tax credit into the “move-up” market is expected to further fuel a housing recovery, as inventories continue to shrink and interest rates remain artificially low. The prevailing perception amongst buyers and the media is that the housing market has bottomed out and is on its way to stability and upward price movement.
At last, news media from around the country are reporting positive trends in the real estate market. The general consensus is that the real estate recession is over. If you’ve been waiting for the bottom to invest in real estate, the time to buy is now. But, don’t take our word for it!
Economists and other experts, such as CNBC’s Cramer, are saying that residential real estate has finally found a floor. As Cramer told CNBC viewers in June, the sector’s long, steep descent is all but over. According to a June 16th article posted on the web by Tom Brennan, “New housing data reported today indicates a dramatic change for the better. The latest news, along with much lower prices and the working off of inventory, validate (Cramer’s) prediction that housing would stabilize this month.”
Among other encouraging statistics, the National Association of REALTORS’ Pending Sales Index, a forward-looking compilation of signed or “pending” contracts, has increased seven months in a row… a winning streak not seen since 2001! The last data available confirm that pending contracts were up 6.4% in August 2009 over July 2009.
Many parts of the country are reporting stabilizing prices amid increased sales. According to RealtyTimes, “In September, sales increased 8.2% in the Northeast, 7.6% in the Midwest, 1% in the South, and 16% in the West. On average, prices were 3.4% higher in August 2009 over August 2008.”
According to Jeffrey Humphreys, writing for Georgia Trend Magazine, “Georgia’s prolonged and severe housing downturn ended in the second quarter of 2009, when single-family housing starts bottomed at 12, 500 units.” Mr. Humphreys predicts that “… the upturn in new home construction and housing sales that began in mid-2009 will gain momentum in 2010.”
Evidence that prices are stabilizing and demand for real estate is increasing here in Coastal Georgia becomes more apparent each day. Inventories, which were never extensive along this section of the Coast, are shrinking, particularly in new products. During the last two years, builders have adjusted housing starts in response to market conditions. Increased interest from prospective purchasers, which began in early spring, is now reflected in pending contracts and closings. For example, increased transactions in the last three months are reminiscent of the hot sellers’ market of three years ago. Multiple offers on desirable, well-priced properties are increasing. Many real estate companies report that phones are ringing with inquiries; website traffic is also increasing.
For the near future, buyers will continue to enjoy the best real estate opportunities in a decade:
- Interest Rates Below 5%: Competition for money, including the Federal government’s extraordinary deficit spending, will drive interest rates up, and soon. But, for a limited time, the Federal Reserve Board is holding rates affordably low. The U. S. Weekly average for the first week in October for a 30-year fixed rate mortgage was 4.94%; that’s rock bottom pricing for long-term money! If you are waiting for prices to drop, stop waiting. A 10% decrease in price is required to offset a 1% increase in interest rates. Increasing prices and increasing interest rates are much more likely.
- A Pricing “Do-Over”: On certain properties, today’s pricing is on par with pricing from early 2000. During 2005-06, many of our purchasers opined, “If we had only bought in 2002, look how much we would have made on this property!” Our view is that 2002 has come again, as will 2005-06. If you are smart enough to enter the market now, you can have a “do-over!”
- Selection: The choices are plentiful in most price ranges. However, since limited new inventory, particularly new construction, is being added to the marketplace, these choices will diminish with each passing week.
- Demand Backlog: People have deferred important real estate decisions for more than three years, particularly the baby-boomers who plan to retire “south.” Improving market conditions will release this pent-up demand, which will absorb more of the available inventory. Prices will rise as demand increases and supply decreases.
- Tax Advantages: Both the Federal government and the State of Georgia will pay qualified individuals to buy a home, up to $9,500, in real money. If you qualify, you should move quickly, as this opportunity ends soon.
Market conditions are changing…. and quickly. As Mr. Brennan states, “…people are as blind to the bottom as they were to the top. You can’t wait for some analyst to make the call. You have to buy now if you want to make some money.” Thank you, Mr. Brennan. We couldn’t have said it any better!
The professionals at Hodnett Cooper know the best opportunities in today’s market. Request our “Best Buy” list and become a part of the real estate recovery. Sometimes, you can have a do-over. Don’t miss this one!
