Pause for Paws

With millions of dogs and cats as members of American families, there’s a good chance that you've got pets sharing the home you're trying to sell. Since not everyone enjoys the company of animals, there are some measures you should consider taking before prospective buyers come over for a showing.

Pet odors are the biggest problem sellers face, but they can be easily minimized with thorough cleaning and vacuuming, and vigilant duty with the litter boxes. Black lights are available that help you to pinpoint the origin of any mysterious smells. It also makes a good impression if you pick up and store toys, bedding, and food and water bowls while your home is being shown to buyers.

If at all possible, take your dog(s) out with you when an agent brings visitors, or ask a friend or family member to keep your pet during the initial listing period. This will help reduce the stress on your pet at a time when showings are usually more frequent.

Another way to put buyers more at ease with their purchase is to offer a cleaning credit or allowance. Even if you're certain you'll remove all evidence of your beloved pets before vacating your home, the buyers may not share your confidence.

Why not offer these gestures of good will, thereby encouraging a better offer from the buyers?

CBTR Gives Back to the Community Through SAFE Shelter

Savannah, GA—The time between Thanksgiving and Christmas is when most people are on the hunt trying to find the best toy or the hottest gaming system. However for others in our community, this time of the year can cause stress and worry. The agents at Cora Bett Thomas Realty wanted to help those in need and contacted the Safe Shelter to adopt a family of four.

Even though the real estate market has been hit hard by the economic recession, the agents and staff at the luxury real estate firm continued a more than ten-year tradition. They put on their elf hats to fulfill the items on the family’s Christmas list by donating gifts, time, and money. The office celebrated the abundance of giving by hosting a wrapping party on Tuesday, December 16.

“We love being able to bring a smile to the faces of a family in need during the holiday season,” said Meg Albertson, Vice President of Marketing. “It’s so rewarding to give back to our neighbors in Savannah. We hope our gifts will help make this family’s Christmas even brighter.”

Cora Bett Thomas Realty has supported SAFE Shelter’s Adopt-A-Family program, which assists families affected by domestic violence by providing gifts and gift certificates during the holiday season. It is a wonderful tradition that the company looks forward to year after year.

CLICK here to see the video about the SAFE Shelter family.

Keep the Horse Before the Cart

While many buyers are aware that a mortgage pre-approval letter increases their buying confidence and power, most may not understand exactly why pre-approval is so important. Why should you jump through the application hoops before even beginning your home search?

First, you'll know exactly how much loan you can afford, making your initial home search much easier. Why waste your time looking at homes either out of your reach or well below your financial grasp?

Second, pre-approved buyers stand on solid negotiating ground with sellers. Sellers working with well-qualified buyers are more likely to accept the offer and less likely to stall on terms and conditions.

Notice that the topic of this column is "pre-approval," and not "pre-qualification." What's the difference? Pre-qualification is easy - you provide basic information to a lender, and in a few short minutes, you have an answer. Pre-approval requires strict verification of documentation relating to your employment, credit history, sources of income, etc. It takes more time, but is more accurate and carries more weight.

Understand that pre-approval is not binding, and is still subject to a satisfactory appraisal on the prospective purchase. If your financial situation changes, interest rates rise or fall, or the deadline passes, a recalculation will be necessary; but a little legwork now will pay off handsomely as you approach the finish line on your contract.

The Move of a Lifetime

If you're in your fifties, sixties or beyond, you may be facing your first move in decades. The process may seem overwhelming, and you may be anxious about the future and the big changes coming up. However, a trusted real estate agent can help with all the steps along the way, especially with selling your home quickly in a competitive market.

If you've occupied your home for ten, twenty or more years, you'll want to enlist family members to get your home market-ready, and prepare for your move. Beyond the cooperation of friends and family, you might also consider a professional "move manager" to help you settle in to your new home.

These experts are well versed in the complexities associated with moving from a "lifetime home" - the preparation involved in staging your home for showings as well as the organization needed to get you moved with a minimum of hassle and confusion. You are in complete control, while they unclutter the house, pack and organize boxes, make the home sparkle, and arrange for moving, shipping, or donating belongings as you direct.

By showing your home in the best possible light, buyers will be able to picture their own families there. Combined with the real estate agent's marketing tools, this formula can provide a quick and profitable sale while you settle into your new residence!

Flex Your Buying Muscle

Regardless of the causes, most areas around the country are experiencing what is commonly referred to as a "buyer's market." That term might make sellers squirm, but for those purchasing a home, lower prices are just the starting point for negotiation these days.

During the recent "boom" years, buyers often accepted a property "as is," and asked for few concessions, even forgoing inspections and appraisals in an attempt to avoid being dumped for the next qualified buyer in the queue. Now, however, buyers are in the drivers seat and they know it, insisting on a variety of terms in their offers.

The most popular demand now seems to be the "home warranty," whereby the seller purchases a one-year service contract to cover any unexpected system and/or appliance repairs. Of course, this is on top of insisting that sellers pay for all needed repairs exposed by an inspection before closing, or at least an allowance paid to the buyers to cover the expenses.

Just one inspector doesn't seem to be enough, either. Now buyers are looking more closely at lead and radon levels, roofs and foundations, and looking into inspectors who specialize in these areas. Sellers find they need to be more flexible, or the buyers will simply move on to the next seller in the queue. Now is the time to boost your purchase power.

A North American FIRST... Right Here in Savannah!

Savannah is unveiling North America’s first hybrid streetcar - a fully restored, green-powered 1930’s era streetcar as a matter of fact - in operation in celebration of Local Climate Action Week, which begins on December 8th and runs through the 12th.

Pretty cool stuff Savannah!

To read more check out The Creative Coast Alliance - click here!

Appoint An Equity Guardian

Planning to sell your home soon? Do you know how much equity you have? When preparing to sell, determine the amount of equity received from the sale - before marketing your home.

Equity is calculated by deducting the amount you currently owe from the present value of the property. The first step is to make a determination of present value. This can be done in two ways.

Ask your real estate agent to perform a "Comparative Market Analysis," showing the recent sale prices of other homes similar to yours. The purpose is to help you arrive at a reasonable selling price for your property. Another way to establish the current value of your home is to order a certified appraisal, an unbiased evaluation of the "fair market value" of your home.

Now, subtract your current loan balance from the present value. What remains is called “equity,” the part you get to keep upon the sale of your home. It should be carefully guarded from low offers and bargain-hunters.

Your best protection against loss of equity is the representative that you choose. It is the agent's responsibility to attract qualified buyers, and negotiate the highest possible sale price. As your representative, the agent has a fiduciary obligation to represent your best interests. The benefit to you is the enjoyment of the highest possible amount of equity.

Savannah Recycles!

2009 is going to start off with a decidedly "green" foot... YAHOO!!

After many years of negotiation, curbside recycling collection will begin Savannah the week of Jan. 5, 2009. Recyclables will be collected twice monthly on the same day as your regular household waste collection.

Of course, there are a few "rules" that need to be followed to make this project a success but they are the typical do's and don't's of all recycling collections so have no fear!

For more information on the program, visit the City’s website. And keep an eye out for a black and yellow recycling bin, coming to a curbside near you.

It's No Mystery

You don't need a crystal ball to try to predict the future of the real estate market. Every time there is a downturn, an upward trend always follows. The best course of action is to look at the causes, and make decisions based on unbiased facts and incontestable history.

As the choice of loan options grew these last few years, consumers could buy a home more easily. Wall Street took notice of all the hot action in real estate, and investment firms were able to shift the ownership of mortgages to their managers and clients.

Then about three years ago, the market began cooling, as incomes did not increase at the frantic pace that home prices did. Investors had created an atmosphere of unrealistically high appreciation. The perfect storm was brewing.

This cycle of up and then down seems more drastic now, because we enjoyed a longer than usual boom of activity, a full decade of it between 1995 and 2005. But demand still remains high, and although rising slightly, our historically low interest rates also help to fuel property purchases.

While there is no such thing as a national real estate market, we should be seeing improvement across the board as 2009 draws to a close. If you can, it's wise to buy now - before the ball lands back in the sellers' court.

Raise the Curtains

If you're selling in anything other than a hot market, you might find "staging" your home can help generate more interest and offers. You needn't spend thousands of dollars on improvements or professional consultants, however. There are several things you can take into your own hands to improve your home's appeal.

Begin by removing scatter rugs and knickknacks, which can clutter a room. In the kitchen, remove all appliances from the counters except the coffee maker and microwave. Set your dining table in a welcoming fashion, with plates, flatware and napkins.

You might be tempted to throw everything into the closets, but buyers will look there, too, so box everything up and place into storage. Focus on the "feature rooms" - the dining and living areas and master bedroom - keeping additional rooms as sparsely furnished as possible. Do your spring cleaning now, scrubbing the walls and floors and shining up those windows.

It has been estimated that one out of four homes listed are "staged," and "The Complete Idiot's Guide to Staging Your Home to Sell" states that you could gain up to $9,000 on a $200,000 house if it's properly presented. You might spend up to $100 per room in time and money, but that's a pretty small investment for that kind of return. Your real estate representative will have even more suggestions.

Time to Make Lemonade

When one hears the word "foreclosure," images are conjured of families unable to meet their loan commitments, and forced to consider unpleasant options. However, it's not only homeowners that suffer from a foreclosure. Renters can be "out on the street" if their landlord defaults on mortgage payments.

A report from the Mortgage Bankers Association states that nearly 20% of recent foreclosures have been against investors who did not live in the property, and even tenants in good standing face having to vacate the premises if they're renting one of these properties.

Why mention this gloom and doom scenario? Because home values have declined, and buyers are seeing the best deals in many years. While unpleasant for sellers, price declines increase affordability for buyers, so if you've been renting, now is a fantastic time to turn that monthly payment into equity.

Interest rates have inched up, but still-historically low rates combined with very affordable housing yield a formula that should put you in a home that you own for the same amount you are now paying for rent. Not to mention that at a lower purchase price, you'll enjoy some great appreciation over the coming years.

Just because you're renting now, you’re not necessarily safe from suffering the consequences of a foreclosure. Take matters into your own hands and buy yourself some peace of mind.

And Now, The Good News

Consumer Reports recently published a survey, and the results indicate that there is, in fact, some good news in the real estate industry! While foreclosures and other economic factors still exert some negative impact, those buyers and sellers who have worked with real estate professionals expressed a high degree of satisfaction, both with their representatives and with their bottom line.

Nearly 10,000 consumers were surveyed, and nearly three-quarters of those buyers and sellers reported that they were very or completely satisfied with their agent. More good news: 86 percent of sellers who listed with a professional made the sale! (Many of the remaining percentage still had their homes on the market at the time of the survey.)

Other results showed what all agents already know, because over four-fifths of consumers who listed through a broker netted an average of only $5,000 less than their asking price. On the flip side, two-thirds of buyers who used a representative paid about $5,000 less than their purchase's original listing price. (The remaining third, who negotiated on their own, ended up paying very close to the asking price.)

So what do all these statistics mean to you? Regardless of your market’s conditions, when you face the need to buy or sell your home, you'll get the best results when you seek the representation of a qualified real estate professional!

There is a Difference

Ever wondered about the meaning of the term real estate "agent?" Many believe the term "agent" and "salesperson" are synonymous, but as the terms relate to real estate, their difference is quite important.

The dictionary defines "agent" as "a person empowered to act for another." A salesperson is defined as "a person employed to sell goods." Although real estate agents are actively involved in sales work, their responsibilities as an "agent" go much further.

Under the "law of agency," an individual may be employed or "empowered" to act on behalf of another. For example, homeowners may employ a real estate company as their "agent" to represent their interests in locating a buyer. Then the "agent" is obligated to faithfully represent the owners' interests by locating a purchaser at the highest possible price, and on favorable terms.

When the agent represents the sellers, only one obligation - honesty - is owed to the other parties to the transaction. In short, when representing the sellers, the agent acts on their behalf, while treating the buyers with complete integrity.

Does that mean buyers should be wary of agents who represent sellers? Not at all. They should, however, be informed about whom the agent is representing.

Can buyers also be represented by an agent? Of course, but any such arrangement should be formalized in writing, including an agreement regarding compensation.

Whether buying or selling a home, it is wise to know who is represented by whom. If in doubt, ask.

Bring It On Home

Buyers and sellers develop a natural sense of excitement as a transaction's closing date nears. While most aspects should run smoothly, it's wise to be prepared for unexpected delays. Anticipating potential problems before they develop could save untold time and stress.

One pitfall might be the title search. The title is simply legal proof of a property's ownership, but issues such as death, divorce, and liens can cloud the final result. Meet with an attorney to determine and resolve any problems.

Financing can also present snags. If the buyers can't qualify for a loan, the deal falls through. Buyers should begin their mortgage education well in advance of their home search, and sellers should ask a price in line with the home's appraised value. If the appraisal is much lower than the contract price, the lender will likely reject the loan application.

The best situation for buyers (and sellers) is to have a loan pre-approval in hand. It starts with the loan officer performing a review of the buyer's credit, income, and asset v. liability status. A letter of pre-approval should indicate exactly how much home a buyer can afford, and should put sellers more at ease with pre-qualified buyers.

There are myriad aspects to closing the deal, so go over each item thoroughly with your real estate representative and develop your plan of action!

Heads or Tails?

They say that no coin is so thin that it doesn't have two sides, and home prices are not so different. Many who invested like mad in real estate the last few years felt the giddiness of buying low and selling high. Investors are feeling the pinch now, but what about the regular folks who buy and sell their homes not for profit, but simply because they want security for themselves and their families?

Sellers want rising home values, but buyers need affordable housing. Unfortunately, these two concepts are often mutually exclusive. Sellers may not feel as positively about the markets right now, but as long as your house is your "home," you shouldn't be feeling as much pressure as someone who bought a property simply to "flip" it for profit.

If your income remains level, and home prices are falling, it actually makes you richer. How so? Because now you can buy more home for the money.

Ultimately, lower home prices will benefit buyers and the economy. Imagine what your children or grandchildren would be facing if home prices had continued their meteoric rise of a few years ago.

It's easy to see that affordable housing is more important than wild appreciation (which must correct itself eventually). Widespread homeownership results in economic growth, so try to understand and not to fear lower home prices.