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.

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.

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.  

So, a while back, I started a series about what makes a good agent.  There are obviously two sides to a deal.  The agent that represents the buyer, known as a buyers agent or the selling agent.  Then, there is the agent that represents the seller, known as a listing agent.   

I wrote about some of the general things that makes a good agent with the part I of this series.  Then, I posted what makes a good buyer's agent.  Now, we will talk about what makes a good listing agent.

#1) Knowledge- I started to try to list out everything that a good agent should know.  And, well, it was a long list.  Here are the five major things that jumped out at me.  

Property value- You don't want to ask too much and have the listing go stale, and you also don't want to under price your home and leave money on the table.  (of course, in this market under priced homes are quickly bid up..so, believe it or not, it is even better to under price your home right now than to over price it)

Marketing-  How to get the most eyes on your property.  Yes, the listing services are a great start.  It is more than just that.  It is having a great website that ranks highly on Google.   It is featuring them on Zillow, Trulia and Realtor.com.  It is about getting them on Craigslist, Facebook, and Backpage.  Basically, everywhere you can get them.  Some agents feel it is a waste of time to run Craigslist and Backpage ads.  But, the first time homebuyer often starts there because they are comfortable with that sight.  They have looked for things there already.  Most people try the familiar first.  

Loan products and lenders- Why does this matter?  The seller isn't getting a loan.  The seller isn't buying the house.  Why should the listing agent care?  Well, there are many different loan programs out there.  And, so many things depend on the type of loan.  The listing agent should know the different types of loans and what the implications are.  The two biggest factors that change with loan types are time to get done and repairs required.  Some loan programs will require you to fix certain things.  So, you may be looking at two similar offers and decide based on price alone.  Only, one loan type may cost you thousands in repairs that the other would not have.   Oh, and of course, if the listing agent knows the loan types, then they can help you navigate those waters more smoothly and get the house closed on time.

Common negotiating strategies-  So many people think that the only thing that matters is price.  But, this couldn't be further from the truth.  Some buyers' agents actually overbid to get the house under contract, only to then negotiate the price during due diligence.  Some look to have ridiculous contingency periods that protect them long after what is reasonable and well into the realm of abusive.  Some overbid, knowing that the appraisal will knock it down.  Other than perhaps the first one, these are not 'improper'.  They are just strategies.  There are more, especially when you get into different types of sale.  Many negotiations are like chess matches.  The good agents see the board from many different angles.    

Contracts-  We use standardized forms.  However, so many agents have misconceptions about parts of the form.  It's as if we don't need to read and understand them, because it is a 'standard' contract.  And, due to this complacency, many agents put their clients in jeopardy by an improperly completed field.

#2) Communication-  This is one of the most common complaints I hear.  This is key.  Not only to the seller, but also to other agents.  I know how frustrating it can be calling a listing agent to show a home and not hearing back for days.  Or, calling with a question so that I can submit an offer and hearing nothing.  And, of course, communicating with the seller to let them know what is going on and what you are doing to get their house sold.

#3) Willingness to invest time, money and resources-  Listing agents are only paid if they sell the home.  Due to this, some are unwilling to invest the proper amount of time or, more importantly, money to getting the listing marketed correctly.  The shortcuts that they take will help their wallet, but it certainly doesn't help your home sell or sell for as much as possible. 

#4)  Knowing our own limitations-  I do not stage homes, nor do I take the photos that go on all my marketing.  I hire a certified staging specialist and a professional photographer.  Does this increase my expenses and decrease my bottom line?  Yes.  I could easily walk around and give you mediocre staging advice.  But, I know that homes sell better when staged.  And, I know that those photographs are what represents your home to millions of people.   This is so very important, especially in upper price ranges.  It isn't just about getting your home sold.  It is about getting the most for your home in the shortest amount of time.

#5)  Counsel-  Your agent is your advocate.  And, they should be willing to go to bat for you at all times.  That should never change.  They represent you in this transaction.  However, they should also be able to put things in perspective.  The other party may not be in the right.  However, it may cost you more in the long run to be right, than to let the other party have their way.  The agent has to be able to frame those conversations.  

Like I said at the beginning, there is a lot that goes into being a great listing agent.  It would be hard to pick the most important.  I supposed it would be integrity.  A person who has integrity would work on the rest because they would know how important each of these is.  

What do you think the most important attributes are?

I can't tell you how many times I have went to look at a home that was listed as a four bedroom that was actually three bedrooms, or listed as having one extra bathroom.  (I don't think this is often intentional by the agent, I think that most often, it is just a mistake)  This may get 'more' people through the front door, but even the ones who were fine with one fewer bath or one fewer bedroom feel disappointed when they are viewing your home.  And, the feeling of disappointment is not what you should be going for.

I have also seen agents list the house as having one fewer bedroom or bathroom.  While those who go to see it are pleased to get more than they thought, the reality is that the home was taken off the lists of several buyers who needed (or at least thought they needed) that extra bedroom or bathroom. 

Lot size is pretty easy to get, you just have to check tax records, yet.... I see tons of listings everyday that the lot size is incorrect, or not listed at all, and also incorrectly indexed.  

Square footage is difficult.  I encourage my buyers not to search by square footage.  Many agents don't list the square footage at all and the agents who list it often get it from tax records, which are often incorrect or hard to read.  But, realize that many buyers do search by it and if you don't have the square footage indicated, or it is listed as less because the tax records are wrong, you are getting fewer buyers.

And, perhaps the worst mistake of all.... incorrect school district, or failing to list a school district altogether.  I see this error as much as I see any other.  And, I assure you that this one thing can affect your listing as much, if not more, than any other.  Especially if your home is in the suburbs in a community that appeals to families.  Make no mistake that the biggest single criteria I get from families with children is school district.  Sometimes it is just one district that they consider, sometimes it is a list of three possible school districts.  And, it isn't always just based on academics.  Sometimes it is an awesome athletic department, or an awesome theatre department, and awesome technology department, or an awesome media/journalism program.  So, if your agent doesn't want to spend the 10 minutes or less necessary to determine your school district, then you could be leaving thousands of dollars on the table.

And, today's real estate search engines - whether it be MLS used by agents, or consumer sites such as Zillow and Trulia - can break it down even further.  We can narrow a search down the most minor details.  If your home has granite counterops, but doesn't get listed as having granite countertop, then the buyer who won't buy anything without it....never sees your home.  And, this is just one feature.  You can search for whirlpool tub, garden tub, hardwood floors, trey ceilings, separate living and dining rooms, formal dining room, lot size, square footage...you get the picture, and that is a very, very small list.

The point is to list the home accurately so that the buyers that your home fits the best actually come and look at it, and to have as many of those buyers as possible.  That is how you get the best possible price for your home.


So, once you have your home listed.  (even if it is listed with me)  Ask for a copy of the listing and then go over it.  Check how they describe the home, but more importantly, make sure all the 'facts' about the house are correct.  Otherwise the buyer who were hoping for is not even going to see your home, other than when they are driving by to look at another home for sale in your neighborhood.