Article - AL fastest to foreclose

Posted at 8:34 AM, Jul. 30, 2007

This is an interesting article regarding foreclosures and it lists AL as being one of the fastest states to go from the delinquency announcement to actual foreclosure; taking only 30 days to do so.

http://money.cnn.com/2007/07/19/real_estate/foreclosure_by_the_state/index.htm?postversion=2007072313">Read The Article Here

June is National Home Ownership Month!

Posted at 12:31 PM, Jun. 12, 2007

Did you know that June is National Home Ownership Month!?

Let's celebrate by sharing our favorite things about home ownership, I'll start.

1. Knowing that it's MINE
2. Knowing that when something needs fixed it's fixed right, because I made sure of it.
3. Knowing that I never have to ask permission to paint my walls.
4. If there's a bug it's MY BUG... ok, it's my fault too but, at least I can get rid of it.
5. I don't like that wall, I think I'll knock it out!
6. Privacy!
7. If I want to move, I don't have to worry about paying early termination fees on my lease... there is NO LEASE!
8. If I want a garden, I can plant one.
9. If I want a pet, I can have one.
10. I'm not throwing money away on someone else's property.

Please feel free to comment with your own thoughts

The Sky is Not Falling

Posted at 12:09 PM, Jun. 12, 2007

Finally, an article that's positive.  It's rather hard when you look across the broad spectrum and all you read and hear is "The Sky is Falling" when it comes to the Real Estate market.  This article explains the obvious - Real Estate fluctuates!  No really it does!  Not only does it constantly fluctuate from market to market but within a market.  For example while the news is constantly talking about the bubble bursting and sales being down, etc, when you look at my market - Huntsville AL and the surrounding areas - that is definately not the case.

In this area we have a few very positive things happening which affect the Real Estate market.

1. BRAC - Huntsville is a military town, we are based around Redstone arsenal and much of our business is military related.  The recent BRAC (Base Realignment and Closures Act) decision that not only decided once again to keep our base open but to bring thousands of new jobs to our base has had a booming affect on our market.  While the numbers are not exactly clear what we do know is that many jobs are coming and that there are more jobs being created than we have people to fill the jobs.   What this means...

2. And Influx of New People - unfortunately many people have a very distorted view of what Alabama is like.  When they come to Huntsville they usually find that their preconceptions were misconceptions and that Alabama (at least this part of it) is nothing like they imagined.  With so many new jobs being created not only through BRAC but through many other businesses moving here (many not related to the military), this means that many new people are moving here, add to that...

3. Low property values, and you've got a great market for housing.  Until recently it made no sense to rent unless you had to and even now if you have decent credit in this area you can buy more of a house than you can rent for the same payment (or less).  It's cheaper to buy than to rent.

4. Low Interest Rates - Despite the fact that they have been going up lately, they are still very low overall, allowing for many people to afford to buy who could not otherwise.

All in all, Huntsville is an awesome market to be in.  If you are considering investing in Real Estate, you may want to take a look at Huntsville Alabama where the property values are still low yet going up and we expect them to continue to rise steadily over the next 4 to 5 years (at least) as so many new jobs move into our area bringing new people with them.

8 Questions to Ask Your Real Estate Agent

Posted at 9:44 PM, May. 27, 2007

I ran across this article geared towards those seeking an agent, and I wanted to address the questions that it tells you to ask.

This article stood out to me because recently I did have someone write an email to me asking me several of these questions, some in a way that I really wasn't sure what they were asking for what they were looking for.  Now I know.

1. How long have you been in the business?
"Pretty much any average person could decide they want to get their license today, and have that license in their mailbox a month later. Because of this, your Real Estate Agent's experience is VERY important. A new Agent will learn a LOT their first year, and will continue to learn more with every transaction. Don't automatically choose against a newer Agent - they typically bring a lot of energy to the transaction, and they will have LOTS of time for you. However, if you do decide to use a newer Agent, make sure they have a great support system behind them."

As of today, May 27 2007, I've been in the business 1 year and 5 months.  I did learn a LOT my first year in the business and I will continue to learn more about this business every day.  Even 10 years from now I will probably encounter issues in this business that I have not encountered previously.  I had a great first year and I see several reasons why that was the case: 1. I did some homework before getting into this business.  The quote above is right it is TOO easy to get a real estate license and because of that many people think that they can just jump in.  However, while it's easy to get your license it's not cheap and most people are not prepared for what they will experience in their first few months nor are they prepared for what they will spend.  Most agents don't last their first year, let alone their first 6 months because they were not prepared.  Only 1 in 5 agents are still standing after their first year.  Prior to getting my license I did a lot of research, I took the time to read MANY books on what to expect and what I needed to know as an agent.  Sadly, most of the other people who surrounded me in my classes were only reading the book they were given to study for the license exam.  The license exam only ensures one thing that you have a basic grasp on terminology and law related to real estate in the state you live in.  It gives you no real information about how to do the job.  There is no business where you can just pass a test and do the job, you have to take the time to learn what you need to know, and while you can learn a lot through on-the-job training, you can learn a lot more if you are prepared for what you will experience during that on-the-job training.

2. Are you a Realtor?
Not all Real Estate Agents are Realtors. Members of the National Association of Realtors have to adhere to a strict code of ethics, or otherwise face having their membership revoked. Also, you must be a member of the National Association of Realtors to have access to the MLS (Multiple Listing Service) which is what gives Realtors access to almost every home for sale in their market area.

In this area (North Alabama - specifically the Huntsville/ Madison County market) ALL agents are Realtors. If you join the local association then you are also joining NAR and to have your license here you must join the local association.  So, YES, I am a Realtor.

3. What certifications do you hold?
There is an "alphabet soup" of advanced certifications that Real Estate Agents can earn. While it doesn't automatically mean that they are a good Agent, it does mean they are serious about their job. Keep an eye out for GRI - this is the most time consuming certification to obtain.

While most agents that you talk to only get the education that is required - typically 15 hours of CE every 2 years - I try to get every bit of education I can possibly find, whether I "need" it or not. I feel that I need and can use any education I can get.  That said, any certification I can get, I will get not because I want the letters but because I hope to learn something from the classes that I take to get that certification.  Some certs require nothing more than classes, while others have base sales requirements along with classes.  I currently hold two designations, e-PRO and ABR, and am working towards my GRI.  As the quote above states it is time consuming and since they only offer the classes for it locally every 2 years, it will probably be another year before I finish it. I took half the required classes when they offered it here a year ago.  I am hoping to travel this fall to take a few more classes and finish the certification up by mid-2008.  I will obtain other certifications as the classes are offered to me and as my sales meet the qualifications.  I expect to obtain the CRS designation by mid-2008, as well.

4. What is your specialty?
Real Estate Agents typically categorize themselves as either "commercial" or "residential" which are vastly different. Even among Residential Real Estate Agents, though, agents will specialize in Buyers, Sellers, or Renters. Some Residential Agents successfully handle Buyers & Sellers, but make sure they come with plenty of satisfied customers. Agents typically cut their teeth working with renters.

I specialize in residential real estate, I especially enjoy working with buyers of any level.

5. Can I have a list of past customers?
Take the time to call a few of an Agent's past customers. Ask for their strengths and weaknesses (and make sure they don't share the Agent's last name.)

I really don't like this question.  While I do have Letters of Recomendation from many of my past clients, I do not feel it is ethical to give out my past clients names and contact information.  It is part of our code of ethics that we provide our clients with loyalty and fiduciary, the same as lawyers and doctors provide to their clients.  I will be happy to provide you with copies of my letters of recomendation, but just as I don't want my phone number and contact info being given out I wouldn't give out yours.

6. Who is your Broker? Can I call him/her?
Real Estate Agencies are moving towards the "mega-brokerage" mentality which means that many Agents today have never met their Broker. If an agent doesn't have their Broker's cell phone number, find out who they will call if they run into questions.

My broker is Larry Perrault and yes please do call him.  I can't even imagine working for a brokerage where I didn't see my broker on a regular basis and where I couldn't walk into his/her office with any question at any time.  That, I am happy to say, is exactly what I have with my broker and that is why I chose them.  When I first got my license I interviewed at over a half dozen brokerages.  Most of them had brokers who were so busy out selling property, how could they possibly be there to help me when I have questions?  That is not the case with Larry, both he and his wife, as well as many of the other agents in my office are always there to help or to answer any question I have.  So, I know that no matter what issues I come up against, they will be there to help me through them.

7. How many sales did you complete last year?
A good agent will complete at least 25 sales per calendar year. You want to make sure that the agent helping you through the largest purchase or sale of your life is a GOOD agent.

I only completed 13 sales last year, however it was my first year in real estate, and that was my goal.  Everything I have read states that the AVERAGE agent does 12 sales a year.... that takes into account a lot of agents who do NONE.  I believe that there are many ways that you judge a good agent, but that it goes to more than just how many transactions they completed. I know many agents who will take any listing just to have listings, guess what? If you take enough listings you will sell more houses, and quite often those sales had nothing to do with how well you did your job.  My goal for year 2 is 24 sales, I don't know if I will meet it simply because I've had a lot of distractions the first half of the yaer (new marriage and all), but I am working towards it.   The most important thing for me is that I give every client my complete attention and if I'm working with more clients than I can handle then there is no way that I can do that. 

8. Is this your full-time job?
It always surprises me how many people are willing to let their office mate down the hall handle the purchase or sale of their home. You need someone who handles real estate transactions full-time, day in and day out, to make sure that your best interests are taken care of.

Yes, this is my full-time job.  There is nothing that annoys me more than trying to work out a sale with an agent who doesn't have time to answer their phone or return phone calls.  We all get busy sometimes, we all have lives outside of our business, but I will tell you that no matter what is going on with me I will find time to return your call and answer your questions.  I do work a pretty standard schedule and I don't work 24/7 but I will be there when you need me.

It's Not Your House YET!

Posted at 1:02 PM, May. 21, 2007

One thing that it is very important to keep in mind as you go through the home buying process is that it's not your house YET!  It will be very soon and because of that it's often easy to get ahead of yourself and start expecting things from the sellers that may be beyond what you should expect.  Remember, home buying is a process and that's why you work with a Realtor, because they know the process and they will make sure you move through it at the right pace, making the right steps at the right time.

Here's a breakdown of that process...

1. House shopping.  You've spent countless hours online looking at every house you can possibly find, trying to narrow down the field. At the same time you are doing that your agent is doing the same thing trying to find you the perfect house.  In addition to looking online you spend several hours out actually inside of houses, or your agent might preview homes for you, sometimes even sending you more pictures to help you narrow things down.

2. You finally found the house you want!  Isn't this the greatest feeling.  Well it is until you find out it's already under contract to someone else.  Hopefully, that doesn't happen but it does and it can, so be prepared as you look at houses.  Remember it's not yours till you close.  Assuming the house is not under contract to someone else, your agent will help you write up your offer to purchase.  Remember this is only an offer, the seller can accept it or reject if they choose, or they can give you a counter offer (this is most common).  In our market the typical selling price is within 3% of the list/asking price. So if you offer too low there's a good chance of a counter offer.  There's nothing wrong with this but remember it's not your house until everyone agrees.  I have seen people lose the house of their dreams because they offered too low and then when the counter came back they countered again and in the meantime another better offer came in and the sellers just took it.

3. Once everyone (the buyers & the SELLERS) has come to terms and signed off the offer, it becomes a contract.

4. The Home Inspection.  Always get a home inspection.  You should try to be present for the home inspection, but again remember that this is not your house yet so don't treat it as if it is.  The house still belongs to the current owners and just because they aren't there doesn't mean you shouldn't act like they are sitting right next to you.  This is not your opportunity to be a snoop.  You should stay with the home inspector or with your Realtor if you don't want to follow the inspector around (although this is a great opportunity to learn a lot about the house you are about to buy).  Once the home inspection is complete you have the opportunity to ask the sellers to make repairs to any major defects.  Remember a home inspection is not there to look for little cosmetic things you should have already noticed. Your Home Inspector is a license professional there to find things you wouldn't.

5. The Waiting.  This is the worst part. The time between the home inspection and closing.  Everything else moved so fast but now it's like the time is just crawling.  Your Realtor is making sure that everything is taken care of in regards to scheduling the closing and getting all of the paperwork where it needs to be.  So what do you do during this time? PACK!  Yep, that's right get packed because otherwise moving day will be here before you know it.  Also, don't forget to call the Utility, cable, and phone companies to get all of those things switched to your name as of the day of closing, otherwise you may be moving into a dark house.

6. Final Walkthrough.  The day before closing (or often the day of closing) your Realtor should take you for a final walkthrough the home... it's not yours yet... This walkthrough is to make sure that all requested repairs have been completed and that the house is as you contracted to purchase it.  If you've ever seen the movie MOVING with Richard Pryor, then you will understand why this is important.  You remember that really cool light fixture you liked? It should still be there when you do the final walkthrough (and when you close for that matter).  If it was attached to the house when you agreed to purchase it, it should be there when you close.  All repairs in your contract should also be done by this time, but if they aren't don't panic.  Your contract lives even after closing, so if they aren't done by closing your Realtor will make sure that arrangements are made at the closing table to see that they get done asap.

7. The closing.  If you are the type that likes to read everything you sign. Please make sure you tell your Realtor prior to closing, so that they can get you a copy of the paperwork in advance.  The attorney's (or title companies) typically schedule about an hour for a closing, which is not enough time to read every bit of the mountain of paperwork you will be signing. They will go over all of the documents with you.  Your mortgage lender should have already gone over the mortgage documents with you (which is the bulk of what you will be signing if you are financing the property).  The attorneys will be happy to answer any questions you have as they go through the paperwork so never fear asking. 

8. It's Your HOUSE!!  Unless other arrangements have been made you will receive your keys at closing. From that point on it's YOUR house and now you can move in, and do whatever you like.

There are a lot of things that go into the process that you will probably never see because your Realtor (if they are doing their job) will be taking care of many things behind the scenes.  Our job is to make the home buying process as simple and stress free as possible for you, taking care of all of the little (and not so little) things that may come up.  If buying a home is a stressful project then you are working with the wrong Realtor.

Home Inspections - GET ONE

Posted at 12:37 PM, May. 21, 2007

Alabama is a buyer beware state, meaning that unlike most states in the country we don't have seller disclosure forms where the seller goes through and checks off everything they know about the property and passes that info along to the buyer.  Even if we did have those, I would still say GET A HOME INSPECTION! And even if you live in an area where those are the norm GET A HOME INSPECTION!

WHY?

Simply put, have you ever had a house that you knew everything about? Do you know when things are about to go wrong before they happen? NO.  Can a Home Inspector tell you that? Sometimes. 

The first house I ever bought was in a state where seller disclosures were the norm.  Here's what I know about seller disclosures... they really aren't worth the paper they are printed on.  Sellers can lie.  Sellers can check "I don't know" and as long as there is no documentation that they do know...no one can say otherwise.  Luckily, we did have a home inspection on the house we bought... and that home inspection discovered about 2grand worth of structural damage as well as a lot of other little things that the sellers didn't know about.

Whether you are in a "buyer beware" state or not it's safest to take the stance that it is in your best interest to know everything you can about the house you are about to buy.  You are the one who is going to be living in so shouldn't you know what you are paying for?

Here are a couple of myths I have encountered regarding home inspections...

1. I'm buying FHA so I don't need a seperate home inspection.  WRONG!  An FHA Appraisal is not a home inspection, it is an appraisal. There are very few items/ needed repairs that they will require to be made and that list is getting shorter by the day.  Really all they look for are major HEALTH & SAFETY issues (ie. is the roof about to cave in? Is it safe to live in?).  Don't expect that if you are getting an FHA loan that they will be doing a home inspection.  It is still up to you to have a home inspection and if you choose not to, then no one else is doing it for you.

2. I'm getting a home warranty so isn't getting a home inspection like paying for it twice? UM NO!  In fact, if you get a home warranty and a covered system is already bad when you buy the house, it may not be covered by the home warranty.  A Home inspection tells you what you are buying when you buy the house. It also gives you a last chance to have the sellers make necessary repairs to the home based on the home inspection.  According to our contracts here in North Alabama, a property is to be passed to the purchaser with all systems in normal operating condition, but if you haven't had a home inspection then how do you know if they were in normal operating condition when you bought it?  A Home Inspection is not a warranty, but it does tell you the status of the home as it is when you buy it. It also gives you a chance to get things fixed by the seller before you close.  A Home Warranty covers the house after you buy it, so that if something does go out later, it costs you a lot less.

For more info on Home Inspections, and a list of Home Inspectors in the North Alabama area click here.