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The short answer is YES!  It actually matters quite a bit.

When I was first starting to out as a Real Estate agent, I didn't think being a Realtor was important.  Even as a Real Estate appraiser, I did not see the value in an agent being a Realtor.  And, I imagine, most of the people reading this won't see it as a big deal either.

Now, that I am in the business, I realize that a Realtor is a cut above.  A Realtor has made the commitment to be a professional and to invest in their career and invest in themselves.  

As a Realtor, I have agreed to uphold the NAR code of ethics, which are at a higher level than those of state requirements.  I have attended training that is required to be a Realtor, but not to be licensed by the state.

Perhaps the most important, is that being a Realtor in my state gives me access to the best Real Estate contracts, which are not to be used by someone who is not a Realtor or does not license the contracts separately.  These contracts are better written and defined than the general contracts used by non Realtors.

So, why don't all agents become Realtors.  Well, I would hope it isn't because they don't want to be held to a higher standard of ethics, although, that could be a reason for some.  I think the bigger issue is that they don't want to spend $400.00 every year to be a Realtor.

Frankly, an agent not wanting to spend $400.00 a year to ensure they are better equipped to represent their clients in the purchase or sale of a home that would be in the 100's of thousands is difficult to understand.  

Now, does hiring a Realtor ensure that you will get a top notch professional?  No, but it definitely increases the odds. 

As always, I hope this article helps you make the wise move.

You are probably aware that the real estate market has improved greatly here in Buford, GA, and the surrounding metropolitan area.  In fact, in many areas, property values are at all time highs, even above the peaks we saw back in the mid to late 2000's.

One unfortunate side effect is that the property tax assessment that you just got in the mail probably reflects a significant increase to your assessed value.

I just received my property tax assessment from Gwinnett County, for my home in Hoschton, GA, and my assessment went up over 198%.  I wish I could call them and tell them I'll take their offer!  

Make sure to check your assessment and don't just throw it into a pile of paperwork that doesn't ever get looked at, or get's looked at six months from now.  This is time sensitive information.

My assessment is 50% higher than I have any hope of selling my home.  So, needless to say, I will be appealing my value.  

The process is very simple.  In Gwinnett County, you file your appeal online and wait for a date to go before the board.  If you live in a different county, the assessment should outline steps to appeal.  The important part is to make sure you file your appeal before the deadline.  My deadline is May 23rd, 2016.  Your deadline should be listed on your assessment.

An added bonus, is that in Gwinnett County, if you win your appeal, your property tax assessment will not increase for 3 years.  My understanding is that is also the case in other counties, however, I cannot personally verify that.

Finally, if you live anywhere in the metro Atlanta and want to know whether you should appeal your assessment, and would like help putting together comparable sales for the appeal, let me know.  I will be happy to do that for you.  There is no charge or obligation, we just want an opportunity to build relationships in our community.

And if, by some chance, you stumble on to this article outside of the state of Georgia and you need help, I would be happy to find someone in your area that could help you out.

Just another way we hope to help you make the wise move!  Take care and thanks for stopping by my blog.

We are representing a home seller in Lawrenceville, GA who has been under contract since March 26th.  We were scheduled to close on the 27th.  On the 26th, the loan officer told us they were declining the loan,  (despite us calling and asking about the loan 10 days prior and we were told everything looked good), and he would have to resubmit.  His debt to income ratio was too high and he would have to pay off a large debt.  As a former loan officer, I suggested that he just pay it off at closing.  Or, at worst, pay it off and get proof prior to closing.  So as to push the closing date by a week instead of a month.  He said that with this loan type, it can't be done.

Obviously, at this point the sellers are angry.  The buyer has done nothing wrong and is actually a very strong buyer and has good credit.  Stuff happens and things don't always go smoothly and we know that as well as any agent with as much experience as we have.  The funny part was that once he called our preferred lender, she was able to get him approved in short order.  

Here is where the story really goes south.  I am used to working with below average loan officers.  (Unfortunately, buyers often get partnered up with someone and they have no idea if they are any good or not.)  The part that makes this story a new low is how this has gone since.

The buyer takes the loan to our lender.  The lender has to get the appraisal from the old lender.  The previous loan officer calls the processor and starts talking about things in the file and tries to raise red flags for this buyer.  Basically trying to raise objections for the processor to take to the underwriter to try to get the loan killed.

How petty can this guy be?  Just because he isn't going to make the commission on the loan, he is trying to keep the buyer from getting the home and kill the entire deal.

Here is the thing, we have a list of people in this business who do not act ethically.  We call it our 'bad checks' list.  The name comes from one of our previous agents who worked at a Piggly Wiggly.  So, now, any time an offer comes over with this guys name on it, you can be assured we will tell our sellers about this story.  And, we will encourage our sellers to make the buyers go with a different lender if they want to buy the home.

Be careful out there.  There are a lot of great agents and a lot of great loan officers.  There are also a lot of bad ones.  It is up to you to choose carefully and make the wise move.

And, as always, if there is anyway we can help you make the wise move, please give us a call.

Oh, and the story will end happily.  My preferred lender knows what she is doing.  The file is structured the way it should have been done in the first place and the loan will close.  It is great working with Jenny Keenan with Brand Mortgage.  

​There are investors and companies that send out postcards and letters telling people that they are looking to buy their home.  They pick their lists based on many different criteria.  Some target owners that are late on their mortgage.  Some target non-owner occupied homes.  Some target homes with owners over 65 years old.  Some target people going through a divorce.  Some target the obituaries.  Some target all of the above.

Obviously, these investors are not looking to pay market value for the property, and they are looking for the people that are the most likely to sell their home for pennies on the dollar.

What do I mean for ‘pennies on the dollar’?  The investor tries to get the home as cheaply as possible.  Many will start out at as low as 40 cents on the dollar of the homes current value in the homes current condition, and the cutoff is usually 70 cents on the dollar.  Please note that this is in current condition and not after repairs.

Many of these investors are hoping they can get your home under contract and then find someone who can actually buy it.  They don’t have the cash in the bank to purchase the property.  They will get the home under contract, then start calling everyone they can to see if someone wants to buy the contract before they ever even close on the property.  If they can’t find someone, then they can’t close and you are in a worse situation.

So, what to do if you are in a desperate situation and see working with an investor as the only, or most convenient way out?

#1) Call a real estate agent.  (This is not as self-serving as it seems)  Pretty much all real estate agents are going to be willing to sit with you and give you an idea of what the home is worth.  It will be a free service.  Try to find someone who knows your area.  (Side note, if you don’t know who to call, call me and I will find someone in your area)  Why don’t they charge?  If you decide to list the property, the hope is that you will call them to do so.  This gives you an idea of what the home will sell for and how long it will take to sell the home if they were to list it.  This keeps you from selling for a discount unknowingly. 

In my former life as an appraiser I had the opportunity to do an appraisal for an older lady who had bought her home for $70K nearly 30 years prior.  It was one of the hottest areas in Atlanta.  I asked her what she thought it would be worth.  She said, probably at least a 100k by now.  It was worth over 700k.  (Well, she wasn’t wrong, it was at least 100k)  She nearly fainted when I told her.

#2) If you decide to move forward with the investor:  Remember, this is a negotiation.  Yes, the investor may play hard ball and threaten to walk away.  Do not be intimidated.  Also, don’t be scared to walk away yourself.

#3) Insist on receiving proof of funds showing that the investor has the cash to purchase your home.  This should be a letter from their banker stating that they have at least the amount of the purchase price and all closing costs available in liquid assets at time of the contract.  Make sure you call the bank to verify that this is correct.  A letter without verification could easily be fraudulent.  A deal with any investor should be one that is quick and easy.  You are trading price for convenience.  You are, essentially, selling your home to a business, the same way one sells jewelry to a pawn shop.  Part of that convenience is making sure there is no loan to obtained, no last minute detail that can derail the transaction.

#4) Read the contract carefully and make sure you understand it.  Many contracts will have a due diligence period.  This allows the other side to pull out for any reason at all.  Push to have an inspection period instead of a due diligence period.  Look to have this period as short as possible.  Best case scenario is 7 days or less.  Do not accept any inspection period or due diligence period over 21 days. 

#5) Make sure the investor has skin in the game.  In Georgia, we call this earnest money.  The sticky part here is that the attorney that will be closing the transaction will likely be working for the investor.  So, insist that whoever is holding the earnest money issues a signed statement that is part of the contract stating that they will handle and disperse the earnest money as required by the contract.  Also, earnest money should be significant in these cases.  Ask for 10% earnest money to be held by the attorney in the event of a breach.    

#6) Stipulate in the contract that the investor cannot flip the contract to another party prior to closing without specific written permission from you. 

#7) Be prepared for the offer price to be reduced after the inspection.  Unfortunately, one of the games investors play is to come to an agreement at one price, then negotiate for a reduction of the price after the inspection.  It happens with listed properties too.  Inspectors are looking to lock the property up and then negotiate the price. 

#8) Stipulate in writing that the contract cannot be flipped or sold prior to close. Most important of all:  Don’t ever sell your property by letting someone take over payments.  It will not absolve you of the financial obligation.  So, if he/she doesn’t make the payments on time, your credit takes a hit.  If the home is foreclosed on, the foreclosure is on you.  Even if they make every payment on time for the next 30 years, that payment will be counted against you on your credit report.  It will limit your ability to buy another home or any other expensive item until it is paid off. 

In many cases an investor and distressed home seller can come to an agreement that is a win-win.  I am not here to bash all investors.  I am here to give a word of caution to unsuspecting home owners.

The key is for the distressed seller to be informed and not to operate out of ignorance.  Make sure you fully understand every implication of the agreement.  If there is anything you don’t understand, reach out to a professional.  (Preferably an attorney.)  Do not take the investor’s verbal word for anything that is not in writing.  (This should be standard practice for ALL contracts, not just ones that are offered by investors)

As always, if you have any further questions, don’t hesitate to
contact me directly.  I am happy to answer any questions you may have.  My number is 678-992-3817.

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Amanda and I work in the Buford are KW office.  And, we have constantly heard other agents RAVE about this place.  I think I had a sandwich from this place a couple years back and it was good, but we just hadn't sought this place out.  It is a little off our beaten path.

Well, we were missing out!  The first thing that you will notice is that the restaurant is actually a converted service station.  It is decorated tastefully.... if Yoda on a shelf with lights projected above it to give a water-like illusion on the ceiling can be tasteful....  When I write that, it sounds tacky... but somehow it worked. 

One of the other things that worked was the wait staff.  Kelly was our waitress and she was fantastic.  Not only was she friendly and attentive, she actually knew the specials, and could describe them.  She knew the regular menu equally well.  She was able to answer questions and give suggestions.  Honestly, it was one of the most pleasant experiences we have had with wait staff in at least a day.  (There is a certain other place in downtown Buford that we learned not to go for lunch at around 2:15pm.  Apparently, their kitchen closes at 2:30pm, and they do not appreciate having people pop in so close to the kitchen closing down)  Actually, she really was fantastic and her knowledge of the menu really was amazing.  And, she may have been faking it, but we didn't get "I don't know, I've never had that".

So, what about the food?  Amanda had the Scallop Po Boy special paired with sweet potato fries, and I had the Royal rooster with Fried Green tomatoes.  The portions were more than ample, which is saying something because, well.... I am more than ample..... which means I can usually finish my meal.  I was unable to today.

It was all fantastic.  I am a fried food connoisseur.  One of the things that bothers me the most is food prepared in old grease, or grease that has been burnt, or that is not kept hot enough.  All of our food was fried.  (yep.... we are health nuts)  And, all of it was delicious.  None of the fried foods tasted like they were prepared in old oil and even though Rico's has a lot of fish items on the menu, the Chick, Tomatoes and Sweet Potato chips didn't have any hint of a fishy taste.

Everything was crispy, hot and juicy and very well seasoned.  

And, as far as prices go, it is very reasonable.   Mine was under 10.00 and Amanda's was 11.50.

If you are looking for a great place that isn't the same ole' same ole', that is delicious, fun and reasonably priced, I hope you will consider Rico's World Kitchen.  It will certainly be on our rotation from now on.

Oh, and don't forget to ask for Kelly..... did I mention she was amazing?

As I was driving into the office today, I heard a national mortgage company advertising lender paid mortgage insurance, and I thought about how misleading the ad was to the public.

So, here is an overview of mortgage insurance.

What is mortgage insurance?  Basically, mortgage insurance protects the lender if you default on your loan.  It is not home owner's insurance in any way, and really offers the home owner no protection at all.  For a conventional loan, it is not required if you are putting down 20%.  For an FHA loan, the MI is always required.  And, for conventional loans, it is actually Private Mortgage Insurance, which is why it is abbreviated as PMI.  For FHA and USDA, it is just MI.  

PMI and MI can vary in terms of cost due to the following factors:  Loan type, Loan Amount, LTV, and credit score.  

PMI can be removed after a minimum of two years if the loan to value hits 78%.  That can happen from additional principle payments or appreciation.  Either way, you will likely have to have an appraisal from the banks approved list of appraisers.  In fact, they will most likely order the appraisal themselves.  You will also have had to have on time payments for at least 24 months.  

One hitch with FHA loans is that the MI cannot be removed.....ever.  This is a recent change, that is often misunderstood.

So, what's with lender paid PMI?  The lender makes the interest rate higher to pay for the PMI.  It will usually result in a lower payment versus a payment with normal PMI.  The hitch comes in that your rate will be locked in higher.  So, if you were to keep the loan for the full 30 years, you would actually pay more than if you had PMI that could be removed.  

The point is that the lender isn't paying it for you out of the goodness of their heart.  You pay a higher rate.  It may be worth it.  You may be able to afford a larger, nicer, more expensive home with lender paid MI.  But, just know going into it that there are pluses and minuses to this loan product.

If you have questions, don't hesitate to call me at 678-992-3817.  If you have feedback, please leave it below!

And, as always,  "Make the Wise Move".

Fannie Mae and Freddie Mac have formally announced their 3% down options on home purchases.

“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”  FHFA Director Mel Watt

Click here for details...