An Ocean of Options

As a buyer, you may find yourself drifting on an ocean of financing options. As lenders tighten their requirements, there are a few aspects of the loan application of which you should be aware before applying for a mortgage.

First, determine whether you are seeking "pre-qualification" or "pre-approval." What's the difference? Generally speaking, when you are pre-qualified, the lender reviews your information and hazards a "best guess" as to the size of loan for which you would qualify.

In the pre-approval process, however, the lender verifies everything on your application, and offers to approve a certain amount at a certain interest rate. Either way, the final loan is only cleared upon receipt of an acceptable appraisal, title check, last-minute credit check, and other verifications. Usually, a pre-approval puts you on stronger buying ground.

A critical aspect of your application is your credit score. Excessive credit, like car loans and credit cards, can sometimes prove as unattractive to lenders as bad or no credit, so make sure that you have plenty of credit available before applying, and put off major purchases until after you've bought your home.

Finally, investigate all of your loan options, compare worst-case scenarios, and do your math. If you need guidance, seek it from a local mortgage specialist or real estate agent who is well versed in current market and lending conditions.

Cora Bett Thomas Realty Agents Recognized for Internet Marketing Excellence

Nationally renowned real estate marketing and technology speaker and REALTOR.com® Vice President, Max Pigman, recently presented Marjorie Maddox and Peter Nelsen of Cora Bett Thomas Realty the “Real Estate Online Marketing Award of Excellence.” The Award of Excellence recognizes top agents who consistently provide great marketing services on behalf of their buyers and sellers.

“There are always some real estate agents who distinguish themselves from other agents by doing a little more for their sellers.” says Max Pigman, Vice President of REALTOR.com®. Cora Bett Thomas Realty provides it agents with enhanced features for every listing on REALTOR.com. The enhanced features provided to all agents are additional photos, customized headlines, video tours, and showcase status for each listing.

“Our agents and clients appreciate that we help bring more attention to the unique selling attributes of their home and ultimately help attract more qualified buyers. Buyers are also appreciative of a well presented home that has a better description and more ways to learn about the property before arranging an appointment,” said Cora Bett Thomas, president and CEO of Cora Bett Thomas Realty.

The excellence award was presented to Maddox and Nelsen and other agents at a recent real estate marketing and technology seminar that demonstrated cutting edge techniques for leveraging the Internet and technology in real estate marketing. “Videos have become an essential tool for marketing a home. I add videos to my listings because buyers today want the whole story. Pictures can hide defects or undesirable features, but with video everything is there. There are no surprises that could waste the time of a buyer,” said Nelsen. The agents at Cora Bett Thomas Realty have received positive responses from buyers and sellers alike.

Three Possible Choices

There are many factors that affect how you'll price your home when you're ready to sell. In spite of market conditions, interest rates, and so on, every transaction is unique. So you should seek the assistance of an agent and prepare yourself and your home well in advance of placing the For Sale sign out front.

Sometimes a home will have three different possible prices: the price the sellers want to net, the price the buyers would like to offer, and the final sales price agreed upon by both parties. Your home's ultimate value is determined by other local sale prices, which are often a product of supply and demand.

The asking price or the offered price are not the whole story, however. While an offer of $200,000 doesn't seem to appear as good as an offer of $210,000, pay close attention to the terms attached to that higher offer. If the buyers also want you to offset closing costs and deduct for a decorating allowance, the "clean" offer of $200,000 might actually put more money in your pocket.

It's wise to seek representation and assistance with pricing, marketing, negotiation and closing. Put a real estate agent with local experience to work for you. Once armed with the facts relating to terms and conditions of local sales, you can move forward with confidence in your listing.

Bricks Beat Paper!

Yes, there's been trouble in real estate paradise, and no matter the causes, the dramatic results have been experienced across the country. Before assuming that housing is a risky investment, please understand that owning a home offers countless advantages over stocks and other securities.

First, home ownership lets you put in a little money and get the whole house. Money in stocks only buys a very small piece of the company.

You also benefit because the government "bribes" you into buying a home by offering scores of tax write-offs, like mortgage interest, property taxes, depreciation - you may even avoid capital gains taxes.

As homeowner, you’re also the sole shareholder! YOU control what to buy and what to pay. YOU choose how to increase value through improvements. Try to exercise that kind of power at a company shareholders meeting of thousands!

Stocks incur risk because they may become worthless. That’s extremely unlikely with your home. Even in the worst periods, homes retain most of their value. Fluctuations over a couple years eventually balance. What you haven't heard widely reported is that housing lost value in only ONE year out of the last thirty-five.

But the undeniable advantage of a home over a stock certificate? Quite simply, you can't live, dream, raise a family, and feel secure with only a piece of paper over your heads!

Open House

Sunday - August 3, 2008

2:00 - 4:00 PM
Southside
5 Dalry Lane
$449,000


3:00 - 5:00 PM
Historic District
429 East York
$495,000

Southbridge
109 Baymeadow Pt.
$697,300

Seeing Green?

With global climate change and rising fuel prices, more people are growing interested in boosting energy efficiency, and homebuyers are among them. What improvements might you consider in order to make your home more marketable in the Environmental Age?

Believe it or not, simply caulking and weather-stripping your windows and doors are two of the quickest (and cheapest) ways to show off your home's efficiency. If you're ready to take the next step, upgrade your appliances to Energy Star standards to make a big impression. (You can research your current models at http://www.energystar.gov/.)

Along those lines, you can ask your utility company to visit your home and perform an energy audit. It costs around $100 and takes only about an hour. Doing this in advance of your listing can be a powerful marketing tool, especially if you receive a good report or you make improvements based on its findings.

For instance, in an older home, you might go ahead and insulate your attic, helping your home retain heat and reducing your electric or fuel bills. Buyers who are made aware of this feature and the savings will likely move your home up their list of choices.

With all the other preparations involved in selling your home, it's easy to overlook the benefits of energy efficiency, but buyers are looking for them, so start seeing green!

Keep the Cart Behind the Horse

It's probably no surprise that nearly all buyers require financing for their home purchase. The real challenge is not so much in getting the loan as it is in finding the loan that's right for you.

The time to start your loan search is before you begin looking at homes. After you've reviewed your loan options, you'll have a better idea of just how much home you can afford.

Starting early also gives you an edge when you offer to purchase a property, because most contracts will specify that you have to apply for financing within a certain amount of time, usually seven to ten days. Meeting with a lender in advance prevents your having to rush into a loan decision.

You'll also have an advantage with sellers, because an offer to purchase from a pre-approved buyer is more attractive to sellers who won't have to worry about whether you'll qualify for financing. It demonstrates to both you and the sellers that you have the financial strength to complete the purchase on schedule.

Many real estate agents have experience and relationships with local lenders, and can suggest one or more lenders who offer a variety of loans with competitive terms and quality service. Your mortgage is as individual as you are, so take the time early on to match a loan to your particular needs.

Ready To Open Up?

There's been discussion among professionals in the real estate business for years now regarding the value of holding open houses. The National Association of REALTORS® conducted a survey last year that revealed 80 percent of buyers used the Internet for property searches, but only 42 percent visited open houses. What gives, and are open houses a waste of everyone's time?

The answer varies according to whom you ask, and there are good arguments on both sides. Some agents feel that truly serious buyers do their searching well in advance, and choose to make appointments to see the homes that really excite them.

Other agents have learned that buyers enjoy the freedom of seeing properties without an appointment and without the company of a representative when they visit. Sellers, on the other hand, sometimes expect agents to host open houses to show that they're working hard for their compensation.

Real estate agents often begin developing relationships with buyers through open houses. By learning the needs of particular buyers at an open house, the agent may be able to direct those buyers to another home that's better suited to their needs – perhaps yours!

In a nutshell, both sides can be equally argued, but the sale of your home is as unique as you are. Discuss the potential benefits and deterrents of an open house with your agent.

'Forrest Gump' swims from Tybee to Hilton Head Island

Swimming has been a part of Nash McIntosh's life since he was a youngster growing up at Isle of Hope. He swam competitively in college and while serving in the U.S. Navy, and most every day takes the plunge at Tybee Island.

So friends weren't too surprised when they heard that Nash, who is an associate for Cora Bett Thomas Realty and a character in his own right, decided to swim from Tybee Island to Hilton Head Island. He attempted the feat three times before but gave out while en route.

"I'm pretty good at failures, but I'm like Forrest Gump," Nash said, referring to the quirky movie character of the same name who was enthusiastic about everything he attempted. "I just keep on swimming."

When Nash turned 70 in May, he decided to try the Tybee/Hilton Head swim once again in recognition of reaching such a milestone in his life. This time he studied the tide, the currents and the shipping schedules before his sea adventure.

Click here for full story.

Contact Polly at 912-352-8670, e-mail pollparrot54@bellsouth.net or write to her c/o 5 Majestic Oaks Circle, Savannah, GA 31406.

Hello, FICO!

You'd have to be living on another planet if you haven’t heard reports of subprime mortgages and their effect on the real estate industry. If you're planning to buy a home, it's apparent that loan qualification these days is more challenging. Sellers also feel the effect from fewer qualified buyers who can make a confident, full price offer.

In preparing a loan application, the most critical factor is usually your FICO score (developed by the Fair Isaac Corporation). You may be aware that your score can range from 300 to 850 points, and that your score affects your terms and interest rate. However, there are some details you may find interesting.

You don't have simply one score, you have three - one from each credit reporting bureau (Equifax, Experian and TransUnion), and each score may differ by as many as 100 points. Your score is formulated from percentages of five different factors: your payment history (35%), your debt (30%), length of your credit history (15%), your credit types (10%), and any newly issued credit (10%).

In order to qualify for a "prime" loan, you'll need a FICO score of at least 620, but you'll get the best terms and interest rate if your score is above 720. Your best bet is to check your scores and reported history well in advance of a planned purchase.

Certify That Pre-Owned Home!

If you're looking for a competitive edge in the sale of your home, your real estate agent may have an unexpected suggestion. Although many sellers assume that it is the responsibility of the buyers to pay for an inspection, having one performed before you even list your home can go a long way towards attracting a full price offer from confident buyers.

Think about it. If you're aware of flaws and needed repairs before you begin marketing your home, you can correct potential problems before the buyers even have a chance to think about negotiating a lower price for repairs. Sellers can expect an offer that is two dollars less for every dollar in needed improvements, so why would you give away that money when you can save it by simply investing in a pre-listing inspection?

A pre-listing inspection also reduces time and stress before closing, because there's no rushing around trying to get requested repairs done on the buyer's schedule. You're also establishing good will right off the bat, creating an atmosphere of trust and honesty up front.

All of these aspects greatly increase the chances that the buyers will offer full price and follow through to closing without any doubts, delays or picky negotiations. Like a quality used car, giving your home the "Certified Pre-Owned" label will encourage the buyer's seal of approval!

Turning Rent Into Equity!

Larger home inventories coupled with tougher financing requirements have made it difficult for both sellers and buyers to achieve their respective goals. In the search for creative solutions, one has recently begun catching on - Rent To Own.

The advantage for buyers is that a portion of your rent payment is put into an escrow account to be used eventually for downpayment on a traditional loan. You can begin building equity before you've even applied for financing! If your credit is less than perfect or you simply haven't the funds available for a significant downpayment, this could be a great opportunity.

Sellers also benefit from receiving income from the tenants and the likelihood that they will eventually purchase the home outright. However, caution must be exercised, and you can protect yourself by seeking the advice and services of a real estate agent. Many agents can even manage the property for you.

Consider who will maintain the property and what percentage of the rent will go towards the downpayment. What will happen if one party wants to back out of the deal or if the renters don't eventually qualify for financing?

These are just a handful of the questions and concerns associated with this otherwise mutually beneficial arrangement. If you're facing challenges as a buyer or seller, consult with an agent today to discuss the possibilities.

OPEN HOUSE | Saturday & Sunday | June 14 & 15

OPEN HOUSE Saturday, June 14

105 Coach House Square 1 - 3 PM
Pooler Morgan Pines
$199,5000


OPEN HOUSE Sunday, June 15

411 East Huntingdon Street 2 - 4 PM
Historic District
$439,000

424 East 31st Street 3 - 5 PM
Historic District
$349,000

404 East 51st Street 2-4 PM
Ardsley Park
$269,000

Before It's Too Late!

Foreclosure is forcing the sale of many homes, putting homeowners in a very stressful and challenging position. While most people think of real estate agents as mediators between buyers and sellers, realty professionals also work with lenders, who are likewise facing challenges.

Financial giant Freddie Mac commissioned a survey, finding that 58 percent of homeowners who are delinquent in their payments didn't know that lenders offer many ways to help. They also didn't realize that free counseling is available for those facing default.

For instance, did you know that a missed payment could be added to your loan balance? Or that you can extend the term of your mortgage? It will take longer to pay off, but it keeps you in your home.

That's another frequently misunderstood point. Banks really don't want to take your home back - they want YOU to keep it and pay for its maintenance and property taxes and so on. Banks are in the business of lending (and making) money, not in maintaining real estate.

While help offered by lenders and assistance organizations can save four out of five homes from foreclosure, the sad fact is that most homeowners simply don't find that help until it's too late.

Please, protect your investment and your community's property values by availing yourself of the assistance that's freely available. Don't wait another moment.

Cora Bett Thomas Keynote Speaker at the Savannah Downtown Business Association

Cora Bett Thomas recently spoke at the Savannah Downtown Business Association’s Leadership Luncheon Series at the First City Club on May 14, 2008.Thomas spoke to the group about the growth and vision of real estate in, “Downtown Savannah: Looking Forward…Forward Looking.” She also spoke about her success and personal experiences she has had starting a small business in Savannah.Attendance at the leadership luncheon was near an all time high to hear Thomas speak. The group was particularly interested because Thomas represents everything that is the Savannah Downtown Business Association. Cora Bett Thomas built her company to promote quality and it has prospered in the unique environment that is Downtown Savannah.