A Brighter Note for Housing

While the Grinch may have had his way with housing this past year, better days are ahead. NAR Chief Economist Lawrence Yun tells us that the economy and housing will easily escape recession, but foreclosure rates will continue to rise in 2008. Some markets will do better than others, however on the whole, the national home sales and price situation will be very similar in 2008 to 2007.

Click here for full article.



"Copyright National Association of REALTORS®, Reprinted with permission."

Real Estate Professionals -- Still the No. 1 Choice by Home Sellers

In a soft housing market, home sellers need help. And real estate professionals are there to provide it. While the Internet and other tools are indeed useful for those looking to buy a home, home sellers still rely on the expertise and knowledge of their real estate agents. Our Market Intelligence feature this month looks at what those sellers most want from their real estate professionals.

Click here for full article.



"Copyright National Association of REALTORS®, Reprinted with permission."

DEBT RELIEF IS NOT TAX RELIEF!

You've certainly heard and read many reports about defaults on mortgage loans. There are many reasons homeowners face such situations, some of which are completely beyond their control. There are also several solutions, but each carries a consequence.

In one example, a family had to relocate for an attractive job offer. The home they were selling languished in a slow market for over six months, and they defaulted because they couldn't continue the mortgage payments.

Their agent negotiated a "short sale," whereby the lender accepted an offer that was $10,000 less than the loan balance (rather than begin unpleasant foreclosure proceedings). In this case, it's important to understand that the shortfall is considered "debt relief" and is reported as taxable income to the IRS.

Since the sellers didn't have to repay that $10,000 to the lender, the IRS considered it the same as $10,000 income. This debt relief from a short sale is considered taxable to the borrowers, and the corresponding Form 1099 must be reported.

This is one of the simpler scenarios created by defaults or foreclosures, which are becoming more common as market corrections and rising interest rates prevail. No matter what reason you or someone you know might be facing default, it is absolutely critical to consult with a tax adviser and a trusted real estate agent before deciding how to proceed.

Events for the week of December 16 – December 22

Savannah Events

Dec. 16 – Dec. 27 – Savannah Harbor Gingerbread Village
This isn’t just one gingerbread house, but an entire festive village! The Westin Lobby is filled with holiday cheer as local chefs and businesses compete for bragging rights as the best gingerbread creation in Savannah!
Location: The Westin Savannah Harbor Golf Resort & Spa-lobby
912.201.2000
www.westinsavannah.com

Dec. 16 – Jan. 1 – Southern Lights, a Savannah Holiday Celbration
Looking for that perfect pre-holiday weekend getaway? Savannah is your destination for holiday family fun; from Thanksgiving to New Year's, spend the season at Southern Lights, a Savannah Holiday Celebration.
Location: Throughout Savannah
www.savcvb.com/events

Dec. 16 – Dec. 23- Holiday Classic Movie Night
Come join us at Cha Bella in our movie room for the showing of a true holiday classic film every Sunday night from November 25th through December 23rd at 7 p.m. Start with a festive holiday drink such as a Hot Toddy or Hot cocoa with a twist.
Location: Cha Bella Restaurant
912.790.7888
www.cha-bella.com

Dec. 16 – 31 – An Early 19th Century Holiday at the Davenport House
The understated taste of an authentic early 19th century holiday season in Savannah is the theme of the 1820 historic house's presentation. Tours explore how the Davenport household celebrated Christmas and New Year's in the 1820s.

Location: 324 E. State Street
912.236.8097
www.davenporthousemuseum.org

Dec. 16 – 23 – Savannah Theatre’s A Christmas Tradition
"A Christmas Tradition" brings you holiday glitz and glitter with a 2-hour performance. The Theatre is transformed into a holiday perfect picture, sharing memories of the Christmas standards that you know and love. Sprinkle in a little comedy and audience participation for the greatest event of the season.

Location: 222 Bull Street
912.233.7764
www.savannahtheatre.com/shows

Dec. 16 – 29- Christmas 1886 with the Gordons
Beautifully decorated for the holidays. Explore Victorian customs. The table is set for Christmas dinner, the stockings ready in Mama’s bedroom, and the vintage “Game of Merry Christmas” is out.

Location: Birthplace of Juliette Gordon Low, National Historic Landmark
912.233.4501
www.girlscouts.org/who_we_are/birthplace

Dec. 20 – The Girl Scout Movement
Discover how Juliette Gordon Low, known for antics, artistic talent and disorganization founded the world’s largest organization for girls & women. Professional staff lead this lively tour, by reservation only.

Location: Birthplace of Juliette Gordon Low, National Historic Landmark
912.233.4501
www.girlscouts.org/who_we_are/birthplace

Dec. 20 – Toddler Third Thursday
This program is designed ages 3-5 and their adult companions. Your child will explore artwork and complete an art project relating to their tour. Registration and adult supervision required, 912.790.8823/ or stifelt@telfair.org.

Location: Telfair’s Jepson Center for the Arts, 207 W. York Street
912.790.8823
www.telfair.org


Hilton Head Events

Dec. 22 – Hilton Head Jingle Bell Run
5K run & 5K Health Walk.

Location: Hilton Head Medical Center & Clinics
843.379.3440
www.bearforrtsports.com

Dec. 22 – Gregg Russell Christmas Concert
Relish the spirit of the holidays with an evening listening to Gregg Russell singing songs of the season for children and adults of all ages.

Location: Harbour Town
843.842.1979

Beaufort Events

Dec. 16 – Joyous Sounds of Christmas
The Christmas concert will consist of Christmas anthems, ensembles & solos. The Kirk Choir will be accompanied by an orchestra.

Location: Sea Island Presbyterian Church
843.525.0696

Dec. 19 – Children’s Christmas Pageant
Children’s Christmas pageant and Communion at 7:00 p.m.
Location: First Presbyterian Church
843.524.3051

Dec. 21 – An Evening with Cool John Ferguson
Blues man and Beaufort native Cool John Ferguson is back in town. Rated by the Taj Mahal as "among the five greatest guitarists in the world. He is with the ranks of Jimi Hendrix, Wes Montgomery and Django Reinhart." Christmas attire encouraged; $15/person, $25/couple; wine and cheese included; tickets at door; RSVP's encouraged.

Location: Arts Council of Beaufort County
843.379.ARTS

Cora Bett Thomas Realty & Associates Helps Build New Habitat for Humanity Home in Downtown Savannah

SAVANNAH, Ga. – (Nov. 13, 2007) – Sales associates and employees at Cora Bett Thomas Realty & Associates proudly donned work gloves and wielded hammers to build a new Habitat for Humanity home for a local family in need on Nov. 9, 2007. Several REALTORS® and staff from this leading real estate company, which is an exclusive affiliate of Christie’s Great Estates, participated.

The home, which is located at 216 E. 33rd Street, serves as the second Habitat for Humanity home that Cora Bett Thomas Realty agents and staff have helped build in the region this year. In January, sales associates and employees at the company’s Bluffton, S.C. office participated in the 2007 Blitz Build for Habitat for Humanity, which was organized by the Hilton Head Area Association of REALTORS®.

“This home is located less than two miles from our Savannah office,” said Meg Albertson, vice president of marketing for Cora Bett Thomas Realty & Associates. “We truly believe in giving back to the communities where we do business and proudly support Habitat for Humanity’s mission of helping to provide quality housing for local residents in need.”

About Habitat for Humanity

Habitat for Humanity is an international non-profit organization seeking to eliminate poverty housing and homelessness by making decent housing a matter of conscience and action. Habitat has built more than 225,000 houses around the world, providing more than one million people in more than 3,000 communities with safe, decent, affordable shelter. Habitat for Humanity, which was founded in 1976, is not a giveaway program. In addition to a down payment and monthly mortgage payments, homeowners invest hundreds of hours of their own labor into building their Habitat house and the houses of others. For more information about Habitat for Humanity, please visit http://www.habitat.org/.

Did you know...

Happy Holidays from Savannah, Est. 1733

Written in Savannah in 1857 by James Pierpont as an ode to his first snowless winter,

Jingle Bells was the first song ever broadcast from space and remains one of the world's

most beloved Holiday tunes.

So, here's to holiday celebrations that put a little Jingle in your season and

Savannah in your heart!

CLICK HERE to sign up now and let us help you find you're perfect Savannah property!

Know the Difference!

How much home can you afford? How do you even begin to find the answer to that question? You've probably heard terms like "pre-approval" and "pre-qualification" tossed around, but do you understand the critical difference between those two? If your answer is "no," then please read on to avoid major disappointment when you make your offer.

“Pre-qualification” is a fine place to start, but if you're really serious about the time and money you're going to invest in purchasing a home, you'll really want to focus on “pre-approval.” Approval, and not just qualification, is secured when you complete and submit a loan application, along with the appropriate documentation and fees.

The lender will review your application and paperwork, and will notify you of just how much financing you can secure. Only then will you have the confidence to make your home choice and make your offer.

A pre-qualification, on the other hand, is more informal, and only an estimate of the funds for which you might qualify after applying for a loan. You might make an offer with pre-qualification in hand, but it's no guarantee that your loan application will be accepted.

The seller's representative will have educated the seller about this critical difference, so make them an offer they can't refuse! Pre-approval puts you in the driver's seat, so get ready to move!

Welcome to Savannah!

FOUR FORMS OF PROTECTION!

When you purchase an automobile, what's the first thing you take care of before driving around town? You've got to get insurance, of course. It's no different when you're ready to buy a home, but you have some more options.

First, understand that there are four basic types of insurance, some required, some not. Title insurance protects you in the event that title to the property is found to be in question. You definitely want to purchase title insurance as part of the closing transaction.

Homeowner's insurance provides coverage in cases of theft, damage and liability. Your lender will require this policy, so this is another absolute necessity.

Flood insurance may or may not be required, depending on the location of your new home. The federal government provides this policy to cover replacement value of the home and its contents. Consult with a local real estate agent to determine necessity and restrictions.

Finally, a newer and very popular form of "insurance" is the home warranty, often provided by the seller as "peace of mind" for the buyer. These are often one-year policies that cover repairs to systems and appliances, and more details on this are coming up in my next column. In the meantime, consult with a real estate agent if you have any questions or concerns about any of the insurance policies addressed here.

Three Little Words

There are three little words that can make buyers very anxious: Offer To Purchase. However, there need not be any mystery or fear attached to that phrase. With an experienced professional guiding the process, feelings of trepidation can quickly turn to excitement and enthusiasm.

While many terms and conditions may be attached to an offer, the real biggie, of course, is price. While you may have heard that your offer should be a certain percentage below the asking price, or even a percentage below what you are willing to pay, consideration of your offer will always be affected by the laws of supply and demand.

When buyers compete, sellers often see full-price offers. However, when inventories are high and demand is lower, an offer below asking price could be in order. Typically, your offer will be presented to the seller(s) and/or their representative(s). The seller may accept or reject the offer, but it's quite common for the seller to reply with a counter-offer.

Since it's often not a simple Yes or No answer, it is absolutely critical for you to stay in close contact with your representative, so that negotiation is handled smoothly and in a timely manner. Take heart that a counter-offer is not a rejection. As long as the offer is on the table, you can nearly always negotiate your way to Yes!

Crash Course

When you're buying a home, who do you think is the most important person in the transaction? YOU, of course! That doesn't mean you won't need experienced professionals for guidance and assistance, but quite frankly, if YOU choose not to buy, the entire process comes to a halt.

While home ownership is called the American Dream, it’s a shame that nobody teaches it in school. Most folks face the biggest purchase of their life without any experience. That's why it's critical for someone to help you understand everything that happens during the process, whether it's your accountant, your banker, or your trusted real estate columnist!

Demand explanations to questions like how much home can you afford? How do you get the best loan? Do you choose a new home or a resale? Which properties will increase in value? Where do you begin?

Since YOU are in charge, take command of the situation, and surround yourself with a team of experts in every aspect of the transaction, all of whom can be coordinated by a local real estate agent.

Plan from the very beginning to educate yourself and approach your purchase with confidence and intelligence. Then you’ll be sure to find the home of your dreams and the peace of mind that comes with knowing that you've made the right decisions all along. Flex those buying muscles!

Buy Now, Retire Later

Have you been hearing that it's a buyer's market? Take a look at local home prices. Have you been told that there's no time like the present to plan your retirement? Again, take a look at those prices, and then think about investing for your future.

When retirement nears, many of us consider making a move, either to a more desirable location or maybe into a smaller home. How do you think home prices now will compare to prices in the future? Buyer's market or not, you can bet that home values will rise.

Even if you're years from retirement, you could consider buying your retirement home right now. If you've built up substantial equity in your current home, you're in a great position for financing on that second home. Even if you can't afford to buy it outright, you'll certainly qualify for more attractive terms on the mortgage.

You see, if you're buying a second home as a residence, most lenders will offer you a lower interest rate than if you were buying another home simply as a real estate investment. Honestly, though, what better "investment" could you make than to purchase your dream retirement property now, while prices are certainly lower than they will be in five to ten years? Consult with a real estate agent and your financial advisor to learn more!

KEEP YOUR PROFITS!

Real estate has proven again and again to be an excellent investment, encouraged by the fact that capital gains on its sale can often be avoided completely. While traditional investment vehicles like stocks impose a 15% tax on long-term gains, you can exempt $250,000 (or for joint filers $500,000) of your home sale profit from taxation.

There are only two simple qualifications: you must have owned the home for at least two years, and it must have been your principal residence for at least two of the five years prior to its sale. Those two years don't even have to be consecutive!

If you own two residential properties, then you have to do some figuring to determine which would qualify for the exemption. There are even some circumstances where you don't have to meet the qualifications, such as hardships like change in employment, health problems, or military service.

What's really attractive about this tax break is that you can take it over and over again, as long as you meet the two basic eligibility requirements. In theory, you could sell your principal residence every two years and walk away tax-free each time!

The capital gains exemption could provide motivation for selling your home before you reach the maximum allowable deduction, but be sure to seek the advice of your financial advisor before making your decision.

MONEY GROWS ON THIS TREE!

Let's plant two “money trees” and watch their growth. We'll plant the first by placing $20,000 in a savings account earning 5% interest, and leave it there for five years. After five years, we'll withdraw our initial investment ($20,000) plus the interest ($5,525). We invested $20,000 and received back $25,525, a 5% yield.

Now, let's plant the second tree. We'll buy a home for $100,000 and invest $20,000 (as the down payment). For the sake of argument, we'll assume that the home appreciates at 5% each year, just as the savings account earned 5% interest. At the end of five years, the home will be worth about $128,335, a $28,335 gain (that's at an annual rate of 5%).

We invested the same $20,000, and received back our $20,000 investment plus another $28,335 (the increase in value) for a total of $48,335. The rate of return is a sizable 19.3 percent! By purchasing the home, we were able to earn 5% appreciation on the entire $100,000, whereas on the savings account we earned 5% only on the $20,000 investment.

Incidentally, if we had invested only $10,000 in the same $100,000 home ($10,000 down payment - $90,000 loan), we would have received the same $48,335 in return for only a $10,000 investment - a whopping 37.04 percent return! Now you can see the obvious benefits of home ownership!

Golf Couse Homes

Are you looking to purchase a home on a golf course? Check out the following communities! We would be happy to show you homes for sale in these communities or answer any questions you may have.

http://www.golfcoursehome.net/doc/communities/Community-Springislandsc.htm

http://www.golfcoursehome.net/doc/communities/Community-Frippislandsc.htm

http://www.golfcoursehome.net/doc/communities/Community-Belfairsc.htm

http://www.golfcoursehome.net/doc/communities/Community-colletonriverscnew.htm

http://www.golfcoursehome.net/doc/communities/Community-hamptonhallsc.htm

http://www.golfcoursehome.net/doc/communities/Community-Palmettobluffsc.htm

http://www.golfcoursehome.net/doc/communities/Community-Seapinessc.htm

http://www.golfcoursehome.net/doc/communities/Community-Wexfordplansc.htm

http://www.golfcoursehome.net/doc/communities/Community-Fordplantationga.htm

http://www.golfcoursehome.net/doc/communities/Community-Reservesavannahharborga.htm

NO DEPOSIT, NO RETURN!

When buying a home, would you consider asking the sellers to "hold" their home off the market without offering to give them a deposit? As a seller, would you take your home "off the market" for purchasers who were unwilling to give you a sum of money as a deposit?

In both cases, the answer is probably "No!" A very important message is communicated from buyer to seller by the so-called "earnest money deposit." It is understandably common for homebuyers to want to offer as small a deposit as possible when signing an agreement to purchase a home, and just as common for the sellers to want as large a sum as possible to be placed on deposit.

Here's why the amount offered can be so important. For the buyers, one way to impress the sellers with their sincerity is by offering a higher than normal deposit. Their willingness to go beyond the minimum requirements is a positive indicator that they plan to complete the purchase on time and as agreed.

From the sellers' point of view, a solid offer to purchase from buyers - when accompanied by a substantial deposit - can quickly become an attractive offer, one which is easy to accept. In a nutshell, a larger than expected earnest money deposit can yield a positive return for both homebuyers and sellers!

THE TIME IS ALWAYS RIGHT!

Perhaps you've thought about selling your present home, but have put off that decision, thinking that now is not a good time to sell. Want some advice? Wait no longer!

Consider what happens during the "bad times." Most homeowners want to sell their homes for the highest possible price in the shortest possible period of time. So, during those periods that are perceived as "a bad time to sell a home" or a “buyers market,” those homeowners put off their selling decision until a more favorable selling climate exists.

Since the so-called "bad times" can last from a relatively short period to a couple years, a backlog of frustrated would-be sellers builds up. It is sort of like the force that builds up in a pressure cooker.

Then, finally, comes the good news: "Home sales are rising - buyers are buying!" Guess what happens? Like the pressure cooker, the lid blows right off the top. Sellers by the thousands begin to flood the market with homes to sell. The competition is incredibly fierce and prices must be competitive to generate a sale.

The best time to sell a home is when you are ready to sell. Make sure your home is in top condition, price it fairly, and employ the best realty professional available. Through careful planning, your house will sell successfully in any market!

NO TIME LIKE THE PRESENT!

How do you know when it's a buyer's market? Look at your watch. If the date is today – then it's a buyer's market! How can that be? Because a buyer can find just the right home at a favorable price 365 days of each year.

Start by defining for yourself the meaning of "buyer's market." Does it mean purchasing a home at a bargain price? Well, there are always homes available at below market prices, but be careful. While you're waiting for prices to drop, you may be faced with higher interest rates, and thus higher payments.

The reverse can happen, too. If you’re waiting for rates to drop (to match the lower home prices), inflation may suddenly increase, raising an otherwise affordable home into an unaffordable price range.

Another definition of a buyer's market may be the availability of a wide selection of homes from which to choose. Naturally, you want to have some choices, don't you? But are you aware that the inventory of available homes has been increasing significantly for a number of years?

Perhaps waiting for a buyer's market is a form of procrastination. If so, don't wait any longer. Each week many happy buyers purchase the home of their dreams, while others watch from the sidelines. Will you be a spectator too, or a player on the winning team?

Savannah Weekly Events

Events for the week of October 1 - 7 in Savannah, Ga.

Oct. 1 – 31 19th Century Glass from the Savannah Collections exhibit on display at the Telfair Museum of Art. 121 Barnard St. (912) 790-8800.
http://www.telfair.org/

Oct. 1 – Oct. 31 JEA Art Gallery Works by sculptor Carolyne Graham, photographer Carrie Kellog, printmaker/painter Grace Rohland and artist Victoria Hennie are on display in the JEA Art Gallery. Reception on Oct. 7, 3:30-5:30 p.m. 5111 Abercorn St. (912) 355-8111.
http://www.savj.org/

Oct. 1- 26 "Focus on 20th Century Art: Highlights from SCAD's Collection" SCAD Museum of Art, 227 Martin Luther King Jr. Blvd., Savannah, Ga. Second floor focus galleryApproximately 20 significant works from the college"s permanent collection are on view, including paintings, drawings and prints by Pablo Picasso, Willim De Kooning, Mark Tobey, Robert Rauschenberg, Romare Bearden, Faith Ringgold, Sam Gilliam, Bridget Riley and others. For more information, visit the SCAD Museum of Art Web site or call 912.525.7191.

Oct. 1 - Oct. 21 Savannah Collects: African Art in Local Collections Pei Ling Chan Gallery and Garden for the Arts, 324 Martin Luther King Jr. Blvd., Savannah, Ga. The Savannah College of Art and Design art history and exhibitions departments present “Savannah Collects,” featuring items such as masks, utilitarian objects and figures culled from local African art collections. A reception is scheduled for Sept. 21, 5-7 p.m., coinciding with the monthly gallery hop. Free and open to the public. For more information, e-mail SCAD exhibitions.

Oct. 4-6 Savannah Shakespeare Festival
This outdoor celebration in Forsyth Park will feature Three Quarter Ale, the Gretchen Green Dancers, Jamie Keena, The Puppet People, Savannah Children’s Theatre and a live professional performance of Henry V. Free and open to the public! For more information, call 912-651-6417.

Oct. 4-7 Artist Materials Trade Show
The latest art materials will be showcased by over 20 exhibitors, including the National Gallery of Art. Presented by SCAD, this event is free and open to the public. Friday and Saturday, 10am - 5pm; Sunday, 10am - 3pm at the River Club, 3 Martin Luther King, Jr. Blvd.

Oct. 5 Hairspray, the musical
Johnny Mercer Theater 8:00 p.m. http://www.savannahcivic.com/cityweb/civiccenter.nsf

Oct. 5-7 Oktoberfest
Live entertainment featuring Oompah bands, German food, games, fun, regional arts & crafts. Location: Rousakis Plaza, Historic River Street Savannah, GA

Oct. 5 – 6 60th Annual Junior League of Savannah Thrift Sale at the Savannah Civic Center Fri., 10 a.m.-2 p.m. and Sat., 10 a.m.-3 p.m. All items are 50% on Sat. Proceeds benefit the Junior League’s community improvement projects. For tickets, call (912) 651-6556.
http://www.jrleaguesav.org/

Oct. 5 - 6 Tybee Island Pirate Fest 3rd Annual Tybee Island Pirate Fest in the South Beach Parking Lot. Features a Pirate Invasion, Pirate Parade, Arts & Crafts Marketplace, live entertainment, costume contests, children’s activities and more. Times vary. (912) 786-5393.
http://www.tybeepiratefest.com/

Oct. 5-6 Botanical Gardens Annual Plant Sale
See many unusual plants, trees and shrubs; along with hanging baskets, ground covers, ferns, etc. The fall is a great time to plant trees and shrubs! 8:30am to 3pm at Botanical Gardens, 1388 Eisenhower Dr. For more information, call Patti King at 912-356-3591.

Oct. 5 First Friday for Folk Music
Featuring Tuck Brawner, Jeff Talmadge and Gary Hensley. 7:30 pm at Wesley Monumental UMC. For information, call 912-786-6953.

Oct. 6 First Saturdays for Kids This monthly program for young people includes studio art workshops (available by advance reservation only), storytelling and ac...Location: Jepson Center for the Arts, 207 W. York Street

Oct. 6 Fall Festival- "Down on the Farm"
Come out for a fun filled day, featuring low country artists. Enjoy a flower show, educational exhibits, face painting, quilt exhibits. Hot dogs and refreshments will be sold. The gardens and nature trails will be available to tour. 8:30am to 3:30pm. At Botanical Gardens, 1388 Eisenhower Dr. Call 912-355-3883 for more information.

Oct. 6 Heart of Savannah 5K Road Race and Walk
The 17th annual road race and walk is organized by the YMCA of Coastal Georgia and will be hosted by City Market. The kiddie run starts at 6pm; the 5K race begins at 6:20pm. For more information, call 912-354-6223.

Oct. 6 Starland Farmers Market
9am-1pm, every Saturday in October. Located in Starland between Bull and Whitaker and 40th and 41st Streets. Free!

Oct. 6-Nov. 3 2007 Alumni Design Show House Bartow House, 126 W. Harris St., Savannah, Ga. The Savannah College of Art and Design announces the Bartow House as its winning location for the 2007 Alumni Design Show House. Located at 126 W. Harris St., the four-story, late Federal- and early Greek revival-style home sits on the corner of Pulaski Square in Savannah’s Historic District. Boasting more than 8,000 square feet of space, the freestanding clapboard structure provides talented SCAD alumni a blank canvas to transform a historic house (circa 1839) into a design show house. Alumni designers and artists will be challenged to showcase their individual style and unique vision for their assigned rooms. Proceeds from ticket sales will benefit the SCAD Alumni Scholarship, awarded annually to a full-time undergraduate or graduate student. A portion of the furnishings and artwork sold in the house will also go toward the scholarship. For more information, read the press release or call Linda Tierney, director of alumni services, at 912.525.5865.

Oct. 7 Picnic in the Park
Savannah’s beloved outdoor affair is back! Pack your basket and join us for a memorable afternoon with music, food and friends. Free courtesy of the City of Savannah.
Phone: 912-651-6417 Location: Forsyth Parkhttp://www.savannahga.gov/arts

BRING ‘EM ON!

In a highly competitive industry like real estate, what reasons would a seller have for going it alone? Not surprisingly, the majority of unrepresented sellers choose to sell By Owner in order to avoid paying a commission.

Before traveling the For Sale By Owner route, consider the following question. Would you be willing to pay a commission if a real estate agent brought a ready and willing buyer to you?

Focusing too much on commission might be penny-wise but dollar foolish, especially when you learn that homes sold by realty professionals fetch 16% more than those sold by unrepresented sellers. 16% is roughly three times the fee that many brokerages charge for their valuable service, so it's easy to see how paying for representation is likely to put more money in your pocket, not less.

What's the explanation for the difference in sale prices? Most commonly, it comes down to the fact that unrepresented sellers are showing their home to a much smaller universe of buyers than the one that real estate agents can bring. By exposing your property to the widest segment of qualified buyers, you significantly increase your chances of a full price offer from a genuinely motivated party.

Honestly discuss your concerns about brokerage fees with an agent you trust, who will cooperate with you to create a fair and valuable relationship.

SECRETS OF THE GARDEN!

It's easy to understand how landscaping can enhance your home's appearance, livability, and resale value. There are many affordable improvements that will boost your curb appeal, but you can begin by investing in just a little elbow grease to trim bushes and prune dead tree limbs.

One simple project that will significantly impact your property's perceived value is planting trees. Proper installation of just three trees can cut energy bills an average of $100 to $250 annually!

Then there's the question of color, and plants like junipers and boxwood provide interest all year long. When planting flowers, you’ll find that red and white colors provide the biggest impact.

Water goes hand in hand with planting and landscaping, and everyone (including the birds) loves the soothing sound of a cascading pond waterfall or fountain. Also consider ways to conserve water in the garden, like xeriscaping with drought-resistant plants.

You certainly don't have to go "whole hog," and you can cut your costs by working in stages. Of course, you can learn more about the most beneficial landscaping by visiting a botanical garden, participating in a local "garden walk," or getting advice from your neighbors.

The most important thing to keep in mind is to have fun. And who knows? Developing your green thumb now may just produce a little more "green" when you sell your home!

DOUBLE YOUR PLEASURE!

How would you feel if you owned two homes, with two sets of monthly mortgage payments, two sets of taxes and insurance, and the responsibility for the maintenance on both?

When you're ready to buy your next home, it could happen. Let's take a look at why. More often than not, buyers begin looking at prospective new homes before they have sold their existing home. When they find a home that suits their needs, a potentially painful dilemma may arise. How do they make a commitment to purchase the second home when they have not yet sold the first one?

One common solution is to sign an agreement to purchase the second home that is made contingent upon the sale of their existing home. In other words, if the first home doesn't sell, the buyers have no obligation to complete the purchase of the second one.

You can make the most of this situation by remembering one very important concept: work exclusively with the same real estate professional on both homes.

Here's why. When you decide on which new home you plan to buy, your agent will help structure the purchase, taking into account your existing home. By letting the same agent market your present home, both purchase and sale can be coordinated to your benefit, resulting in deep satisfaction rather than a deep dilemma.

KEEP YOUR PROFITS!

Real estate has proven again and again to be an excellent investment, encouraged by the fact that capital gains on its sale can often be avoided completely. While traditional investment vehicles like stocks impose a 15% tax on long-term gains, you can exempt $250,000 (or for joint filers $500,000) of your home sale profit from taxation.

There are only two simple qualifications: you must have owned the home for at least two years, and it must have been your principal residence for at least two of the five years prior to its sale. Those two years don't even have to be consecutive!

If you own two residential properties, then you have to do some figuring to determine which would qualify for the exemption. There are even some circumstances where you don't have to meet the qualifications, such as hardships like change in employment, health problems, or military service.

What's really attractive about this tax break is that you can take it over and over again, as long as you meet the two basic eligibility requirements. In theory, you could sell your principal residence every two years and walk away tax-free each time!

The capital gains exemption could provide motivation for selling your home before you reach the maximum allowable deduction, but be sure to seek the advice of your financial advisor before making your decision.

MULTIPLE CHOICE!

Once you decide to list your home for sale, how long will it take to sell? How long should you give the agent to successfully market your home?

The best answer is to be reasonable. But what’s reasonable? 30 days? What about 300 days? Of course, there is no standard response.

Let's look at how to determine the right amount of time in your situation. With each real estate market being different, it takes longer to sell a home in some areas than others. A home that may sell in 15 days in one city may take 87 days in another, or even six to nine months in yet another.

Actually, the time needed to attract a buyer can be made longer or shorter by offering a higher or lower price, and better or less desirable terms and amenities.

Ask your agent to provide information relative to current selling times in your neighborhood. Discuss the factors that may help or hinder the sale of your home, and ask for your agent's best estimate of selling time for your home.

Then, allow the appropriate amount of time to properly market your home. By giving a reasonable length of time in which to perform, you will have the complete determination of your agent, and will no doubt be pleased with the results - the ultimate sale of your home.

PUT AN INSIDER TO WORK!

Home ownership has been called The American Dream. And yet, while 7 out of 10 Americans are either directly impacted by a disability, or know someone who is, only 7 percent of all adults with disabilities are homeowners. What's wrong with this picture?

Fortunately, homeownership is beginning to grow among this segment of our population, encouraged by the development of special programs aimed at helping those with disabilities to finance a home. And why not? These families have the same qualifications and dreams as anyone else.

It's just that their needs are different, and a trusted real estate professional can be an excellent resource in finding a home in a community that offers the features and benefits most suited to those needs. "Location, location, location" becomes even more critical when you factor in the need for proximity to special-education schools, medical facilities, accessible transportation and recreational activities.

When facing relocation to a new area, it can be overwhelming for almost anyone to discover information about these resources, but it's an especially challenging search for the disabled and their families. Because of their involvement in the local community, active real estate agents have an insider's knowledge of the resources and support available for families with special needs. When faced with the excitement and anxiety of such a move, turn to an experienced professional for assistance.

FACTS, NOT FANTASY!

Confused about setting an asking price for your home? It's not surprising, considering the mixed signals you might be receiving about the "national" real estate market. First, understand that there is no such thing as a national market - only thousands of individual markets experiencing different conditions.

If you don't have detailed information about local home sales, it's just about impossible to determine your home's value to buyers. Even prices from just six months ago probably won't hold up, so it's critical to have access to real-time information about trends in this market.

Details should include the total number of properties currently for sale, the number of both pending and sold units, the average listing time, and the average listing price and sale price. You must compare pending sales and final sales, because the pending transactions really reveal where the market is heading (as opposed to where it was when a sale took place.)

Start your pricing decision by contacting a real estate professional, who has access to this information and the experience to interpret the facts. Your representative will not set the price for you - that's your final decision. But don't be surprised if the agent walks away from an overly optimistic asking price, because the agent can't afford to invest time, money and energy in an overpriced listing, and neither can you.

LIGHTS... CAMERA... "ACTION!"

There's a big difference between listing a home and selling a home. Nowhere is this more evident than on the Internet, which has evolved into an excellent advertising medium. When combined with newspapers, real estate magazines, direct mail, and other marketing tools, the World Wide Web can play a large role in exposing your home to potential buyers.

Many buyers begin their search online to educate themselves about neighborhoods and to locate homes in their price range. While the listing exposes your home, it does not sell your home. Once buyers have targeted some attractive possibilities, they still turn to a qualified real estate agent to represent their best interests as they plan their purchase.

Talk in detail with your representative about your home's online presence, and get some ideas from current offerings on the brokerage's website. You can ask to preview your online listing, and in many cases, you'll be able to offer a "virtual tour" of your property. More and more buyers are taking advantage of this powerful marketing tool, and you can also take full advantage by presenting your home in warm and bright full color photos and video.

Don't worry - you won't need a digital camera or video recorder. The real estate agent has all the tools and skills necessary to produce a feature that puts your home in the spotlight!

Share the Love!

Have you ever heard of the "home staging" profession? These individuals assist sellers with presenting their home in a fashion that will increase the likelihood of a full price offer. While the value added by such professionals is often worth the investment, many sellers can put the basics into action themselves, and enjoy the same benefits.

There are several "quick fixes" that stagers commonly recommend, and here are some highlights for your consideration as you prepare to market your home.

First, the dirty work. You've got to clean your windows, but don't forget about washing all the screens to let in as much sparkling sunlight as possible. In tiled bathrooms, clean and regrout the floors. You know what they say about cleanliness!

Second, create space in two ways. In the kitchen, roll away any movable utility carts and clear clutter off the countertops and the refrigerator. In the rest of the home, move the furniture one to two feet away from the walls to create the illusion of more space.

Finally, impart a sense of warmth and coziness by making up beds with colorful sheets and comforters with matching window treatments. All of these preparations should make it that much easier for the buyers to imagine how comfortable they will be in this home. Your pride of ownership will encourage them to feel the same!

How It All Began!

Have you ever wondered how and when "real estate" became a national industry, and buyers and sellers began to seek professional representation? You may be surprised that realty's modern history began less than a century ago. Those early days have affected home ownership ever since.

Back in the 1920s, Herbert Hoover pushed the idea that home ownership was the foundation of democracy. He and others helped to professionalize and standardize the practice of building and selling homes.

It wasn't until the Great Depression, however, that the government really got involved with the National Housing Act of 1934. Critical to the act was the introduction of mortgage insurance and putting established practices into law.

After these policy changes, large numbers of middle-income families began buying homes. Before then, only the wealthy and upper working class could afford such a purchase, and usually without a mortgage.

Now we can apply our modern perspective and imagine how things might be changing in our current economy. The "middle class" is feeling the squeeze as the gap between wealth and poverty grows. Owning a home makes more sense now than ever, as a secure place to live and as an investment. But great care must be taken to avoid the problems of over-financing and risky home loans. Trust a professional real estate agent to protect your best interests.

Sights and Smells!

Attracting buyers has turned into quite the competitive sport. Once you catch a buyer's attention with a favorable asking price, how do you encourage them to select your home from the other choices? Namely, assault their senses!

Since first impressions do count, you should start at the front door. Apply a fresh coat of paint and new hardware. On the inside, paint the walls with neutral colors. Designers recommend golden beiges and sandy tans.

Now make the buyer's eyes dance around the home, taking in shiny new faucets, bright light fixtures, and attractive doorknobs and cabinet pulls. Like jewelry that accessorizes your home, these details can make quite a statement about your pride of ownership.

Another way to show off is to reduce your furnishings by at least 25% throughout the house, even if you have to pay for storage. This will convey a sense of open space to potential buyers as they size up the interior for their own belongings.

Finally, when your home is being shown, you can subconsciously influence buyers through their noses. It may sound silly, but it's proven that a home smelling of freshly made bread or cookies generates more offers. Of course, a spotless kitchen helps to increase that impact.

Conveying cleanliness and comfort throughout your home will make a lasting impression, so don't overlook the power of the senses!

Time to Move!

When you've found the home of your dreams, you don't want to delay in producing your offer to purchase, so it's a great benefit to know what to expect in advance. While there is no foolproof formula for negotiating a fair price, you can begin by looking at recent sales in the neighborhood and comparing their list price to their final sale price.

If homes are generally selling at 5% below list, you have that starting point for determining your offer. Once a price has been accepted, it's time to put it into high gear by obtaining your financing, scheduling a home inspection, and establishing a closing date. Your offer should be contingent upon securing a loan and a satisfactory "walk-through" before closing.

Earnest money, or the "deposit" on your purchase, will be placed in escrow. It will eventually transfer to the sellers, or will be refunded to you if any unsettled issues prevent the closing of the transaction. If major repairs are needed, the seller may fix the problems, or offer a reduction in price. With such a contingency clearly stated in your offer, you can walk away from the deal if the seller doesn't comply.

As these few considerations are the tip of the iceberg, your best bet is to always work through intermediaries, whose objectivity and experience help guarantee a smooth transaction.

Start on the Right Foot!

As you consider buying your first home, you'll get lots of advice, but you shouldn't do anything without a complete understanding of your financial situation and how much home you can afford. So, where do you begin?

There are two parts to financing - the downpayment (generally 20% of the purchase price) and the balance (the remaining 80%). Secure the best interest rate by reviewing your credit reports and correcting errors, which are surprisingly common. Do this at least two months in advance of your home search, as that's how long it can take to clean up your reports.

You'll know exactly what you can afford by securing pre-approval from a lender, who will review your income, debt and credit, and suggest the loan best suited to your qualifications and needs. If you can put down more than the usual 20%, you may qualify for a higher loan amount.

With less than 20% down, you might pay a higher interest rate or PMI (Private Mortgage Insurance), because the lender assumes a greater risk. Consult a financial adviser about ways to raise the cash, like withdrawals from an IRA or gifts from your parents. Each has tax implications, so proceed with caution.

With your financial house in order, you're ready to discuss your desires with a real estate professional and begin your home search in earnest. Congratulations!

More or Less!

A country church once paid $1,500 per acre more than "fair market value" for two acres of land adjoining the existing church property. In another transaction, a young couple agreed to accept $7,900 less than "fair market value" for their three-year-old tract home.

Once "fair market value" is established on real estate, other factors such as availability and time pressure may influence the final sales price. The church wanted an additional two acres adjoining church property to use for a picnic and fellowship area. Property located in any other spot would have been unsuitable. Thus the adjacent land held more value for the church because of its location, and they were willing to pay the price.

The couple that accepted $7,900 less than fair value for their home exemplifies the concept of time pressure. The husband, a middle management candidate within his company, was offered a promotion in another state. He was anxious to move and assume his new responsibilities. They weighed a higher selling price for their home against a fast move to the new job. The new job won out, resulting in a lower than fair market value sale price.

Keep in mind that even when the final sale price of real estate is higher or lower than "fair market value," both buyer and seller may experience complete satisfaction with the transaction.

The Savannah Condo Market

Today, condominiums are more popular than ever in Coastal Georgia and South Carolina. Hilton Head Island and other resort areas have always offered condos as affordable ways to own property near the beach. Now urban locales such as Savannah are getting into the game. Savannah has enthusiastically embraced condo culture, with conversions, renovations and new construction resulting in exceptional lofts and condos for every budget.

In June, there were nearly 300 condos listed for sale in the Historic District of Downtown Savannah. Cora Bett Thomas Realty & Associates sold 27% of all condos in the Historic District in 2006. With many new developments on the way, the condo market will only improve, and become even more vibrant and exciting than it already is.

The condo lifestyle is attractive to people in many walks of life, from students to retirees, young professionals to investors. Condos are generally low-maintenance, often have many amenities, and are positioned in great locations. Options in Savannah are varied for every taste, including loft-style studios with modern finishes, renovated Victorians with old-world charm, and luxury residences with city or water views.

If you’re looking to buy, be sure to check out our Condo Gallery for information on condos for sale in Savannah!

Don't Wait, Renovate!

There are all sorts of loans for all types of homes, and "fixer uppers" are no exception. Lenders can offer attractive terms to buyers who want to renovate their purchase. One well-known lender offers three different types of renovation loans, with the most popular requiring a downpayment of only five percent.

So how does it work? Along with their application, borrowers submit architectural drawings of the proposed improvements. Then a completed home value is determined and financing terms are offered, with interest rates usually coming in just slightly higher than those on conventional loans.

Payments are often separated into six parts during the renovation, with disbursements issued at the satisfactory completion of each stage of the project. If you're familiar with construction loans, you'll find that it works in a similar fashion.

What's really attractive about purchase-plus-renovation loans is that some lenders will even roll the first six months of interest into the total loan amount. That can free you from making payments during those first six months while you're heavily involved in your improvement project and may even need to be living elsewhere.

In any case, there is a dizzying array of financing options out there, and it's best to start the discussion with a real estate agent who is well versed in matching homes to buyers and buyers to loans!

Don't Go Stale!

As you prepare to sell your home, you probably expect to have a For Sale sign in the yard, information on the Multiple Listing Service, and perhaps an Open House. If you expect top dollar in today's market, you can count on a real estate professional to provide many more services in addition to those three most obvious elements of successful marketing.

The agent will handle all aspects of the sale, from preparing your home to attract buyers through the negotiation of the purchase offer. Somewhere in the middle of all that is effective marketing through online advertising, targeted mailings, and personal networking, not just on behalf of the agent, but through a whole team of professionals.

When that offer comes in, all the experts in the office spring into action, helping the entire process move along smoothly to a satisfying conclusion. Your agent has a personal stake in selling your home for the highest price possible in the shortest time possible. If your listing languishes on the market, it becomes like stale bread that might sell for half price at the supermarket.

Time and money are directly related, whether we're talking about bread or houses. Price your home competitively from the start, present it in the finest manner possible, and market it through the expertise of a professional supported by a network of experts.

Enter the Buffer Zone!

What is the primary objective for a buyer when negotiating the purchase of a home? Would it be fair to say that the buyers want the lowest price possible with the most liberal terms? And what about the sellers of a home? Would you agree that the sellers want the highest price possible with the terms most favorable to them?

It’s pretty easy to see then that the buyers and the sellers in a real estate transaction each have goals that are diametrically opposed to one another. As a result, they can each become highly anxious, emotional, and especially frustrated by the negotiating process. The solution is to create a "buffer zone," or an arena in which negotiations can be carried out in a logical, businesslike and objective manner.

This can be accomplished through the use of a reputable real estate company and its agent. Here's why: although a real estate agent may represent either the seller or the buyer (or sometimes both) in a purchase transaction, all parties must be treated fairly.

Also, not being emotionally involved in the transaction, the agent becomes an objective or "neutral" participant - the "buffer." Thus, both buyers and sellers can make comments, offers, and counteroffers without fear of raising each other’s anxiety levels. The result can be a highly rewarding home purchase and sale for buyers and sellers.

Stay One Step Ahead!

As a seller, you'd prefer a nice clean, unconditional offer at full price, right? One way to encourage such confidence among potential buyers is to have an inspection report available during showings, as well as any receipts (or estimates) for repairs. Why order an inspection when the buyers will probably do so anyway? Because when you take the initiative and perform repairs before listing, you are basically presenting a clean bill of health for your home.

Prelisting inspections are becoming a popular way to give sellers an edge in competitive markets. Taking such action also provides a great opportunity to take care of problems that otherwise might come back to bite you. Buyers today are armed with more knowledge than in the past, and they recognize the security offered when the seller is forthright and demonstrating that there is nothing to hide.

These are the conditions that are more likely to produce that unconditional offer. While it's probably a given that the buyers' representative will encourage them to order their own inspection, you also have a greater sense of confidence knowing that there won't be any surprises.

If you have any doubts about whether a prelisting inspection will improve your chances for an early sale, discuss it with your real estate representative, who will also undoubtedly have many other suggestions for successfully marketing your home.

Show Them You Care!

You might think that the living room or family room is the heart of your home, but in the eyes of potential buyers, there are at least three other rooms that will demand your attention as you prepare to sell your home for top dollar. Avoiding improvements in the following areas may cost you a lot more than the small investment it takes to impress buyers.

For buyers, the kitchen is often the most important area, and while you may not need to replace your cabinets, refacing or just sanding and painting will go a long way towards improving their appearance. If the floor is in poor condition, consider replacing it.

In the bathroom, fresh paint and new flooring are also fine improvements, but your greatest payoff might come from simply investing a couple hundred dollars in a new mirror and vanity.

The laundry room is often overlooked when it comes to improvements, but buyers will respond positively if you install built-in shelving and storage. If your laundry area isn't flooded with light, consider upgrading the light fixtures. While you're at it, that fresh paint and new flooring wouldn't hurt here, either.

Trust me that if these three rooms are bright, neat and clean, it conveys to the buyers that you are a responsible seller with pride of ownership, worthy of a full price offer.

It Works Both Ways!

In slower housing markets, most sellers understand that attracting buyers becomes more of a challenge. With more homes for sale at ever more competitive prices, buyers tend to have more power to choose and negotiate under these circumstances.

What steps can you take to insure a faster sale at a higher price? First, seek representation. Over the last ten years, the number of homes that sold "by owner" fell by one third, and that statistic includes all markets, both hot and cool. What does that trend mean? Sellers have come to realize that real estate professionals are better equipped to produce top dollar offers, especially in slower conditions.

In 2006, the National Association of REALTORS® reported that the median selling price for homes listed through agents was 16% higher than those homes that were sold "by owner." Beyond putting more money in your pocket, an agent also saves you untold headaches associated with marketing your home, orchestrating showings, and coordinating paperwork.

Last year, a significant number of unrepresented sellers ended up finally turning to a professional. Why wait until your home has already become stale inventory to reach the same conclusion? Remember that what works in a slow market also holds true in very active markets - a professional representative simply brings more knowledge and experience to the table, resulting in higher offers in less time.

You're Not Alone!

Foreclosure. The very term strikes fear into the heart of any homeowner. Would you believe that one in every 1000 homes in the U.S. were in the process of foreclosure at the end of 2006? If you're facing such circumstances, first understand that you are not alone.

Most people got into this position by taking advantage of ridiculously low introductory rates on adjustable rate mortgages (ARMs). Now that those loans are resetting, consumers face dramatic increases in the interest rate, and consequently, the monthly payment. Even a reasonable rate like 7% becomes a burden to those who have grown accustomed to the 1 or 2 percent introductory rates.

Ideally, a short sale coordinated by a real estate professional provides the opportunity to satisfy all the motivated parties - seller, buyer, and lender. The seller wins by liquidating the property before foreclosure proceedings begin. The buyer benefits by securing property at a good value. Finally, the lender benefits by not having to initiate the foreclosure or take the property back.

A real estate agent may even have suggestions to help keep you in your home. Granted, it isn’t a sale, but agents appreciate the subtleties of building good relationships with loyal clients who will refer business to them in the future. Trust a professional to guide you through this difficult time with experience, courtesy and respect.

Rubbing Elbows!

At some point in your life you're likely to find yourself either buying or selling a home. When that time comes, you might want to ask yourself some questions.

Can I figure like an accountant? Can I measure like a surveyor? Do I understand "legalese" like an attorney? Can I spot defects like an inspector? Can I speak like an auctioneer? Do I understand zoning, building codes and taxes like a city or county employee? Do I understand human motivation like a psychologist?

Chances are you'll be hard pressed to answer all those questions with a "Yes," unless you're a real estate professional. Why, you ask, would an agent be different? It has to do with "rubbing elbows."

The daily routine of an active, highly committed real estate broker or agent is an exhausting one. During any 24 hour period, such a professional will likely have contact with loan officers, lawyers, tax collectors, land surveyors, insurance company representatives, mortgage lending officers, accountants, auctioneers, courthouse personnel, local businessmen and - most importantly - buyers and sellers.

Working at least six days a week, can you imagine how many individual contacts would be made in a year's time? Such an active individual can mean the difference between winning or losing at real estate. After all, it's who you know, and now you know the benefits of representation.

Vacant Home or "Open House"?

If you move out of your home while it's on the market, you'll expect your real estate agent to handle showings in your absence. But how do you avoid the unwanted attention that a vacant home can attract from uninvited intruders?

There are many suggestions to offer to increase your security. While your agent likely won't have the time available to constantly monitor your home, you do have the option of registering with the local police department, so that officers assigned to your neighborhood can keep an eye on your home and perform security checks as needed (generally at no charge).

If you have a security system already installed, be sure to notify your service that the house is empty, and provide an emergency contact number. Also employ a caretaker for the grounds, to keep the yard clean and maintained for a more lived-in look. Stop your newspaper deliveries and make sure your mail is being forwarded to your new address before your big moving day.

Don't leave anything valuable behind, and be sure to program all of the lights on timers, inside and out. An overlooked issue, however, is to not leave the lights on all night, as that is actually an obvious clue that no one is home.

Some simple planning now can save you untold worry and stress later. Enjoy your move!

An Ounce of Prevention!

What does the phrase "title search" mean to you? Aside from an activity at the local library, its purpose is critical to the successful sale of a home. A title search is performed by an attorney in order to guarantee that there are no unknown liens on or claims to a property.

Because title searches are often ordered only after a purchase contract is on the table, problems can suddenly turn up at the eleventh hour, causing delays in the closing. That's why it may be advisable for the sellers to request a title search before even listing their property for sale.

What sort of problems might a title search unearth? There might be an "unreleased mortgage," which happens when a previous refinance is paid off, but the lender fails to file a release on the old mortgage. Property taxes may appear to be unpaid until filing errors are discovered. A divorce or death in the family may not be properly reflected in the ownership structure. Sometimes property records are fraudulently used to commit identity theft.

This is not to say that these errors are common, but they are increasingly prevalent among properties that have changed hands several times over these last few years of frenzied real estate activity. Speak with an agent before listing your home to determine whether a title search is appropriate.

Back to Basics!

Okay, it's time to return to Real Estate 101. With so much gloom and doom reported, our successful sale stories are being pushed aside by national reports of overstocked inventories and reluctant buyers. Blaming slow sales on "the market" is just an excuse. There is only one reason that homes remain unsold: they are overpriced.

For many sellers, this lesson is only learned after it's too late, resulting in frustration and finger pointing. Let's try to put the record straight. Many markets experienced extremely high levels of activity over the last few years. Inventories adjust as the number of eager and willing buyers drops off. Simply put, buyers are becoming choosier.

Sellers must look around them and take note of homes currently for sale, homes that have recently sold, and homes that have languished or expired. In other words, look at those prices and learn from the experiences of those who have gone before you.

A primary rule of Real Estate 101 is that a home's value is determined by the buyer, not the seller. That means today's buyer, not yesterday's and not tomorrow's.

Buyers are in fact plentiful, but they're just as tuned in to the media's scare tactics as sellers are. If you want to sell your home to "today's" buyer, consult with a professional and price your home competitively against your rivals.

A Truly Secure Transaction!

If there were a health issue in your family, you would turn to your doctor with questions. Likewise, you would consult an attorney if you were facing a legal problem. Chances are, however, that you would first go online to any number of medical or legal websites to familiarize yourself with the issues and get enough information to begin an informed discussion with the professional.

Those websites won't illustrate how to perform surgery, or advise you how to conduct your case in court. That's up to the professional. The Internet plays a similar role in real estate. It's a place to discover information, but it doesn't replace the trust and service provided by an accomplished representative.

Nearly three-quarters of buyers these days use the Internet to begin their home search, and most of them eventually seek the assistance of a living real estate agent to consummate their purchase. They're not about to take a virtual tour of 264 Elmwood Drive, add it to their "shopping cart," and proceed to "secure checkout" to complete the sale.

Buying a home is not the same as buying airline tickets or DVDs. Real estate agents provide essential services to both buyers and sellers, marketing properties as unique as their owners. Don't short change yourself on the biggest transaction of your life. Seek the representation of a knowledgeable and experienced professional.

First Impressions Count!

When you start planning to put your home on the market, it's time to show off! Try to imagine that your in-laws are coming for an extended visit, and then triple the effort you would put into preparing for their arrival. Sellers are competing for offers, and it all starts at your front door - literally.

Impress potential buyers at first sight with a well-tended lawn and entryway. When they walk through the door, make sure they do not sense any clutter. You've got to pack it up sooner or later, so take the opportunity to do it now, before another agent or buyer steps into your home. An abundance of personal items like photos and children's "refrigerator art" can interfere with a buyer's ability to picture the home as their own.

Next, if it should shine, make it so! Polish doorknobs, handrails, and lighting fixtures, anything that can add a little sparkle and show your pride of ownership. This includes windows (and screens), which should let in plenty of light for the show.

First impressions really do count when it comes to presenting your home. Accentuate its features and eliminate distractions such as personal items or unpleasant odors. An uncluttered, well kept home will attract buyers, and a little time and care can make the difference between a quick sale and a languishing listing.

The Uninvited Pest!

When you prepare an offer to purchase a home, be sure that "uninvited guests" don't appear at the closing. The guests I'm talking about are termites! Although termite inspections are not always required, you'll find that most lenders will not approve a loan without one.

A report prepared by a licensed pest control company will show if there is any presence of termite damage, or if there is any evidence of treatment for the wood-destroying insects. It isn't a guarantee that there aren't any termites present - it only reports visual damage or treatment.

Who pays for the inspection? That comes down to local customs and negotiation and between the buyers and the sellers. When buyers pay, it’s easy to avoid any conflict of interest by being sure to use a pest control company that is different from the one currently servicing the home. This ultimately protects the sellers, too, because if problems show up later, it can be shown that the buyers conducted an independent and objective inspection.

Again, understand that the inspection and subsequent report will not prove or disprove the existence of termites, but buyers who ignore this important issue during the purchasing process could be asking for trouble later on down the road. If you have any questions or concerns, consult with the real estate agent and move forward with confidence.

Cause and Effect!

Real estate is experiencing an unusual adjustment these days. Unusual, because in the past, sales declined due to either high interest rates or economic slowdowns. Neither of those factors exist right now, so where does the blame lie?

Quite frankly, one of the biggest reasons that home prices rose to such artificially high levels was because of a frenzied degree of investor speculation. "Flippers" would buy and then sell homes just for a short-term gain. The truly negative effect that this activity had was to drive home prices so high that most median-income families could not afford homeownership.

Now, as prices come back down to realistic levels, more middle-class buyers are capable of making the purchase. Sellers are beginning to realize that they have enjoyed substantial gains in equity and appreciation over the last few years. A price reduction of five or even ten percent is unlikely to erase those gains.

Realistic pricing by sellers encourages more sales. As more sales happen, inventories will again drop. As inventories drop, home prices will begin climbing again (at a more reasonable rate this time). Real estate agents are prepared for the cycle to continue, and you should be too. There is no need to panic when pricing adjustments are actually leading to a positive impact on your financing ability and the long-term value of your home.

Time to Reassess!

We all know that homes in many markets across the country experienced substantial gains in appreciation over the last few years of heated real estate activity. While sale prices are currently leveling out, you may have experienced "sticker shock" if you recently got a property tax assessment that shot way up.

As a matter of fact, property tax collections across the nation were up 35% from 2002 to 2006 (U.S. Census Bureau). That's twice the growth of personal income, spurring some 15 states to consider tax-cut proposals.

If you don't want to wait for new legislation, you can simply "act locally," and challenge your tax bill. It's not a hopeless case, because the American Homeowners Association (AHA) estimates that 60% of homes are in fact assessed too high.

Don't march down to the Assessor's office until you've checked your property data card for errors. Are the number of bedrooms and baths correct? Finished or unfinished basement? Lot size? Assessments are often based on replacement cost or what your home would sell for, so check with your insurance policy and real estate transaction records to determine if those figures are in line with what your tax bill states.

Not enough homeowners bother to make a challenge, but 70% of those who document and report errors manage to lower their tax bill (AHA). It's well worth a look.

Two Sides of the Same Coin!

How would you place a value on your home? More critically, how would you put a price on your home? Sounds like the same question, but it suggests the difference between price and value that's important to understand as you prepare to sell your home.

Two homes may have identical features and prices, but factors like location and condition can impact the homes' perceived value. To arrive at an attractive asking price, you must compare your home's value against its competition, which is easily done through realty websites and advertisements.

Your goal is to set the right price right away. Your best window for a full price offer will come within the first three weeks, so if you don't see any activity in that timeframe, take action. In changing markets, pricing a home becomes an ongoing activity. You need to consider real estate dynamics - new listings, recent transactions, expired listings, shifts in inventory, and so on.

Your best source of information and guidance is your neighborhood real estate agent, whose vocation it is to monitor all those conditions and bring buyers and sellers to the table for a satisfying transaction. Meet with your representative to discuss your motivation and timetable, compare your home's value against the competition, and analyze current trends in this market. The relationship between price and value will become crystal clear!