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.

​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.

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".

Obviously, as Real Estate professionals, one of the most frequent questions we get asked is:  How are the schools?  Surprisingly, we aren't allowed to discuss the quality, or competence of the schools.   I know this sounds absurd, but it is true.  In some ways, this is good.  Everyone's standards differ and what is a good school to me, may not meet your criteria of a good school.  I encourage all of my clients to do their own homework.

First and foremost, unlike a decade ago, there is an abundance of information about schools on the internet.  Here are a list of websites that can help with your initial search.
'

Great Schools

This is great first step.  You can search for any school district that you are considering to see how it ranks.  It will rank schools on a numerical scale from 1-10.

School Digger

This website begins to give you a little deeper statistical analysis of how the schools rank.

Niche Rankings

This is a yearly ranking by Niche.  This is based on several different statistics as well as reviews from students.

U.S. News ranking of High Schools in Georgia.

And, finally, this is a ranking is by U.S News.  This is based on four key metrics listed on the website.



What next?


All children and all parents are not the same.  So, a great school for one student and parent may not be a great fit for another.  Pay attention to things like student-teacher ratios, or whether a school offers a specific program that engages something that you child loves.  Some schools have video, photography, or broadcasting classes.  The key is to find the school that is right for your child.

If you are seriously considering a home, head to the neighborhood when school lets out, and talk to some of the parents.  Head to the school and talk with the principle and ask for a tour.  Walking through the school will give you a first hand look at what your child will see everyday.  

And, finally, remember, that regardless of the schools ranking, the success of your particular student can be directly influenced by your involvement, and your student's hard work.

Please feel free to reach out to me with any suggestions or feedback that you may have.

The Plan Collection (TPC) notes that having a haunted-looking house might be just the look you want once a year, but what about once Halloween's over? The company shares their list of the top 10 elements of a house plan design that can make any home the scariest in the neighborhood along with advice on how to fix them.

1. Eerie Architectural Style. Remember the rather "unique" look of the home in The Addams Family? Norman Bates' house on the hill in Psycho? Certain architectural styles - such as Victorian and the Second Empire style with its mansard roofs - have a long history in spooky literature and horror films. Ironically, we often associate these same styles with some of the most cheerful and charming places in the country - just think Disney's Main Street USA. 

2. Lifeless Color Scheme. Dark paint colors, when used as the primary exterior color, can make almost any home look dreary, uninviting. Lighter paint colors that complement the design of your house are often the better choice for the exterior of your home. Reserve your use of darker color to areas that emphasize special features such as the trim or windows. 

3. Ghostly Lighting. No one wants to knock on the door of a house without exterior lighting, but lighting features that cause heavy shadows along walk-ways or at entry points - creating that fear that something or someone might be lurking just ahead -- can be even worse. Redirecting the light features or using lower wattage bulbs is often an easy way to chase the ghosts away. If investing in new lighting, consider lamps that emphasize the beauty of your home's exterior features. 

4. Zombie Landscaping. Those trees and bushes might have looked perfectly sized to the house for perhaps the first five years after planted, but don't forget... they're alive. Alive! Neglected trees and shrubs keep growing and need constant tending. Without attention, they end up surrounding your house with an "undead" feel. In addition to detracting from the house design, older, large branches are also a risk to your home in storms. Take those pruners and cut off some heads or at least give everything a good trim.

5. Suspended Maintenance. Most everyone puts at least some repairs off, but rigorous home maintenance is essential. Spring and fall are the best time of year to start checking fix-it projects off your list. Fix that step before you have to fix the entire stairs! If the exterior is starting to look dull consider power washing it. Touch up paint before a small problem becomes a big one. 

6. Scary Windows. Small windows or windows covered with heavy drapery create a more somber feel. For small windows, use brighter window treatments to lighten the mood. Take advantage of any larger windows to bring outdoor light into the home. 

7. Creepy Front Door. Ever have second thoughts before knocking on a front door while trick-or-treating? Well, the size and color of the entry door play a big role in making first impressions. If the front door feels uninviting, think about using a bolder, friendlier color such as a bright red, or chase away the shadows by strategically using lighting. 

8. Bone Chilling Floor Plan. Small rooms and narrow hallways make for a cramped, uninviting floor plan. Consider an open concept floor plan if buying or building a house. If renovating, be sure to consult a professional before removing walls in your current home, as they may be "load bearing" walls, and will have to be replaced with other supports or structures. 

9. Mysterious Staircases. Narrow staircases with walls on both sides can be dark and creepy. Lowering a wall to open the staircase up to the room or hallway below can go a long way to dispelling some of the dark, scary mystery and making your stairs more inviting. 

10. Horrifying Home Décor. Dark, oversized furniture and heavy rugs can have a tendency to make a home feel less inviting. Stacks of stuff and excess clutter around the house? Not going to help the situation. Ask yourself if you really need all that stuff and if not, get rid of some of it.

Reprinted with permission from RISMedia. ©2014. All rights reserved.

You may already know all this information, but I run into a lot of clients that have questions about this.  Figured I would get it right from the horse's mouth.

Edited 10/01/2013- I was dead wrong yesterday.  


Well, no matter which side of the isle you are on, the government shutdown could affect you.   As far as Real Estate transactions go.... this is a big deal.

President Obama said specifically that "Federal loans for rural communities, small business owners, families buying a home will be frozen,"  


Yesterday, I went into each of the loan products and what the impact would be.  Well, if you aren't already in process, there will be significant delays regardless of the loan product.


Mortgage companies use a system to verify SSN's and another system to verify tax returns/income.  These systems are obviously run by the IRS.  And, these systems are currently shut down.


Until the government is started back up, cash offers should carry even more weight than normal.

Wrong.  This is one of the things that buyers often struggle with, but the seller has no obligation to fix the property or to reduce the price.

The due diligence period, or inspection period, depending on the contract, merely affords you the opportunity to have the home inspected.  There is no obligation on the seller's part to complete repairs or reduce the price in lieu of repairs.

Once the inspection is complete, you can ask that the seller complete repairs.  At that point, it becomes a negotiation.  They may elect to fix everything you ask for, or NOTHING you ask for.

There are many things that affect the seller's decision.

#1) Market-  If the market is a seller's market, (as it is right now in our area), the seller knows that even if you don't complete the purchase, someone else is right behind you bringing another contract.  Now, conversely, two years ago, sellers just wanted to hold the contract together, so they would fix just about anything they could.

#2) Financial ability- Some sellers have no money to pay for repairs, or financial flexibility to reduce the price.

#3) Types of repairs-  Is it a safety issue?  Is it a functional issue?  If so, many times, these get fixed.  But, the reality is that if you are buying an existing home, and not one that is being built, there will be some minor things that the inspector can find.  Even on well maintained homes.  So be reasonable with what you are asking.

#4) Seller's perception of your original offer-  If the contract price is really lower than they wanted to go, and they feel like you are getting a 'steal' to begin with, they will be less likely to complete repairs.

#5) Motivation-  The market plays into this as well.   However, if a seller is being transferred, or has another home under contract, or is getting a divorce, or..... fill in any scenario in which the seller has pressure to get the sale completed, then they will often agree to far more repairs in order to keep the contract and sale moving forward.

#6) Type of loan-  Some loans like FHA, VA, and USDA all have minimum property standards.  If the inspector finds something 'should' come up when the property is appraised by the bank, then the listing agent should advise the seller to go ahead and get it fixed to keep it from being an appraisal/lending condition.

#7) How long has the home been on the market-  This goes into motivation as well.  If the home was on the market for a week, then the seller may just elect to put it back on the market and get a buyer that is less picky.  Heck, maybe one that doesn't even get an inspection.  If the home has been on the market for a year, then they will be motivated to keep the sale moving forward.... of course, unless they just don't have the financial capability.

I have it posted elsewhere, but you should ALWAYS get a home inspection.  When you fall for a home, it is often like the beginning of a romance..... there are flaws that you just don't see.  Love is blind, after all. 

To sum up, keep your requests to the items that would prevent you from buying the home.  Try to picture being on the other side of the transaction and figure out what you would think was 'reasonable'.  

Example- AC is not in working order.  It is reasonable to ask the seller get AC to be in good working condition.  It is not reasonable to expect the seller to replace the AC if they can get the existing unit working properly.

One of the most asked questions I ever get.