For Sale By Owner Buyers Look to Agents for Safety

According to the National Association of Realtors, last year there was a 14% decline in the number of For Sale By Owner (FSBO) properties. Despite that decline, FSBO properties are still available in Savannah – and in an inventory-challenged market, you might find one of them is a pretty tempting buying opportunity.

But here is where caution is warranted — and where you may be amply rewarded by seeking a Savannah buyer’s agent to represent you. There’s more than one reason why:

FSBO owners may, er, hide things

It can be tempting for FSBO sellers to cover up problems that would have been picked up if a seller's agent had been involved. By using an experienced buyer's agent, you stand a much better chance of identifying those common problems. A qualified inspector (your agent will recommend a good one) can help you spot the more well-hidden ones.

FSBO properties usually cost more!

Statistics bear it out: it’s estimated that FSBO properties can cost 10 to 20% more than those listed via real estate agents. Owners just tend to overestimate their property's worth and selling potential. And without the counsel and guidance of a real estate professional, sellers usually establish a stronger emotional attachment to their first listing price. The presence of your buyer’s agent (with a notebook full of comps) is sure to power up your negotiating stance!

Legal issues

One of the main reasons to team with an agent is the plethora of legal issues that are interwoven with residential real estate sale transactions. By using an agent, you stand to identify any contractual mishaps before they are executed — and well before costly repercussions materialize. Since many owners who take the FSBO route in Savannah are usually short when it comes to real estate transactional expertise, there may be required disclosures and important paperwork that they have missed. You don’t want to find that out too late. 

If you wind up seriously eyeing a local FSBO home this summer, save future headaches by including your buyer’s agent commission in your offer. More questions? we’re available for consults this week!

Property Search Results Can Rise Through Social Media

By now, social media are an integral part of many peoples’ daily routine. If you are selling your home in Savannah this summer, you can decide to add your own social media clout to add further momentum to the professional campaign. Your agent already has a great website to attract anyone conducting a Savannah property search. Now many sellers are using their own social media network to link to it. 

No one wants to be spammed by a friend’s marketing on Facebook, but a few posts about your home-selling adventures can be interesting. When your home is first listed, announce it and post a link to your agent’s website. Be sure not to sound too sales-y (that’s your agent’s job). Instead, share items that relate to your life: “It’s really happening! Listing our home for sale in [insert your neighborhood] this weekend. Now I finally get to show off my new kitchen with its 6-burner Viking range!” Share photos, too.

The rules for Twitter marketing are similar. It’s social, so avoid outright sales tactics. Try asking engaging questions, like, “Do you think buyers in [insert your neighborhood] will want to check out our #solarpanels?” Don’t forget to #hashtag key words, and always link to the listing’s website so interested buyers click directly to it for their property search.

Photos sell — so if you have a Pinterest account, use it! Ask your agent for copies of your listing’s top-quality photographs, then post, post, post! Choose the top three features Savannah buyers might be looking for in their property search and create a Pinterest board for each. If you have a chef’s dream kitchen, create a board featuring gorgeous kitchens. If you have a waterfront property, make a board filled with beautiful waterfront properties (especially yours!) The boards will draw prospects whose property search keys on those features.

We welcome help from any homeowner who thinks their own social network will add to our full-time campaign. If you’re looking to sell your home in Savannah this summer, contact us today to discuss how our marketing plan can go to work for you!

Remodeling Projects Home Listings Results Don’t Support

We all do a mental survey before preparing to enter our home in the Savannah home listings. We ask ourselves something like, what should I improve that will pay for itself?

Since anything that improves home listings can result in better offers, the answer can never be proven absolutely. But Remodeling magazine gives it a try. After delving into the year’s home sales numbers, their “Remodeling 2012–13 Cost vs. Value Report” (www.costvsvalue.com) highlights some remodeling ideas that don’t return anything like what the investment is likely to cost.

Among midrange projects, boosting the number of bathrooms might seem to warrant the expense, yet that usually isn’t the case. A Bathroom Addition returns just 54.8% of the average cost of $37, 501. On the other hand, a more minor bathroom remodel of $15,000 or so averages more than a 10% greater return for about half the outlay.

Less costly (but still a dubious proposition) is putting in a Backup Power Generator. Count on just 52.7% of the $11,000 investment to be returned at sale.

Image Courtesy 123rf.com

Second worst result in terms of percentages (but far and away the most costly) was the idea of putting in a Sunroom Addition. An average cost of $72,179 added just $33,529 at resale. That hefty price tag is probably too high a hurdle for many prospective buyers.

The Home Office Remodel weighed in as this year's biggest loser. Nationally, homeowners spent an average of $27,293, yet could expect to recoup only about 42.9%. Ouch. If you’re considering a remodel, opt for something that can be readily converted back into a bedroom or den, and call it a study, den or hobby room when it hits the Savannah home listings. Buyers like functional space they can reshape to their own family’s needs.

What are the best remodeling projects? Siding, garage door, and window replacements tend to head the list. Please feel free to contact us before you spend a single dollar on renovations. We’re here to help guide you in the right direction — and toward a top return!

Preparing Your Home for a Virtual Tour

Putting your Savannah home up for sale makes you a key player in a marketing team led by your real estate agent. But you don’t have to attend seminars on salesmanship or study the latest marketing best seller to make valuable contributions to your team: heeding a few guiding principles will take care of that.

One of the most valuable is simply this: great marketers know they should appeal to the widest

Image Courtesy 123rf.com

market possible. Today, we can attract a much wider market than ever before — from across the nation to (amazingly enough) buyers around the globe! It’s due to an increasingly popular tool: the virtual tour on the Web.

Because a standout virtual tour doesn’t just happen by itself, here are some fundamentals for preparing the most effective virtual tour:

• Disorderly rooms as viewed through any old webcam don’t make the grade. Remember that details you see as assets may be perceived as clutter when viewed through the camera’s lens. This can include personal pictures, books, ornaments and toys. When your home is free from clutter, potential buyers can much more easily picture themselves living in it.
• Make sure your furniture is placed to communicate the appearance of spacious, open areas. This may means being willing to move furniture — even pieces that actually look great in person — away from the middle of the room.
• Since taste is an individual matter, it is hard to present a color scheme that appeals to everyone who views your virtual tour. The most universal rule of thumb is to stick to neutral color combinations. While you may love a vibrant blue wall, others may see it as an unwelcome chore — one extra thing they will have to change were they to purchase your home. In contrast, neutral colors can present a blank canvas.

Getting your virtual tour right means showing a pleasing series of comprehensive views that are neat and minimally but attractively furnished. Check out some of our Virtual Tours!

Do Savannah Home Prices Warrant a Bubble Watch?

As home prices continue to rise throughout most of the nation, sooner or later people begin to wonder whether we’ve crossed the threshold dividing undervalued from overvalued. Pundit shorthand for “overvalued” has gradually become almost synonymous with the far more fear-inducing term, “Bubble.” As with the chewing gum and soap-blowing varieties, the term can’t help but conjure up visions of the associated “Pop!”

Just worrying that we are in a home pricing bubble can cause sleepless nights and worse —  financial paralysis. As home prices in Savannah move higher, it’s natural to wonder if they are truly justified by economic fundamentals. While no one wants to be on the other side of wrong, no one wants to miss great deals on Savannah home prices, either. How to know?

Bubbles are notoriously hard to define, but to address the issue, the Trulia real estate web site has just come out with a new tool designed to assess whether today’s home prices — including those in Savannah — are overvalued or undervalued. They compare the latest prices with historical incomes, prices, and rents. 

Copyright (c) 123RF Stock Photos

The first findings are reassuring. Although residential price gain percentages do rival those of the last decade’s bubble, that’s deceptive. They started from a much higher perch. The decline from 2005-2006 was steep enough that (aside from a few metro areas in California and Texas), the fundamentals show that the current gains look a lot more like a rebound than a bubble.

Trulia found that as of last month, national home prices remain undervalued by 7%. During last decade’s bubble, prices went as high as 39% overvalued. Their takeaway is that home prices remain considerably lower than they were during the last bubble.

So bubble-watchers can rejoice or rebel, but as far as we are concerned – Trulia has provided some very pleasant news. “Rebounds” bring about visions of happy kids on trampolines (and rebounds don’t pop). The news is excellent for instilling a positive national outlook, but more locally, if you’re looking for the latest information about Savannah’s home prices and activity, contact us for a no-cost, no-obligation consultation.

Options for Buying a Home After a Foreclosure Open Up

“Time flies when you’re having a good time” we hear. But time can also pass quickly for those who’ve had to go through difficult times. Case in point is a million and a half borrowers who have recently experienced the pain of a foreclosure. That’s the estimated number of those who, by this time next year, will have waited long enough to again become eligible for an FHA loan.

Anyone interested in buying a Savannah home after a foreclosure has come through a tough period. The standard waiting period for an FHA-guaranteed loan is 3-4 years following a foreclosure or short sale (though individual circumstances vary.) Now that the weeks and months have ticked by, this sizable crop of newly eligible prospective ‘boomerang buyers’ may soon find themselves contemplating the option of buying a home after a foreclosure.

Photo Courtesy of 123rf.com

That estimate of the size of the newly eligible was provided by Moody’s Analytics. Since they are key players in determining creditworthiness, it’s a source we trust. A chart of Moody’s count from the second quarter in 2011 (when their number was a mere 285,000) to next year’s second quarter 1,500,000 provides a convincingly uphill slope.

Still, being eligible to apply does not mean automatically qualifying for an FHA (or any other) loan. Success in buying a Savannah home after a foreclosure continues to depend on the same standards that always apply. After the waiting game is over, having cured credit damage will become the prime requirement.

To increase their chances of successfully buying a home after a foreclosure, Savannah prospects will have paid existing credit card and loan debts with the kind of unfailing regularity that reassures loan officers and credit analysts alike. If that hasn’t been the case, the time to begin is ASAP.

Website Zillow predicts the next most influential group of buyers will be those who are looking to buy a home after a foreclosure or short sale. Savannah residents who are among them — and who are ready to make this their turnaround season — should give us a call. We can get started with the pre-approval process!

Just Listed in Coffee Bluff Plantation

Click here to see more pictures and detailed information. Schedule a Showing Search All Homes For Sale Free List of Foreclosed Homes For Sale Homes Close to Where You Work What is Your Home Worth? Ben Farmer Ben Farmer Realty 912-692-1085 Questions? Schedule a Showing! MLS#: 109917 L2L Virtual Tours

Three Questions to Ask New Neighbors When Relocating

With more than 43 million people relocating throughout the U.S. every year, you don’t have to wait until you are surrounded by stacks of cartons to realize how important it is to make your next move the right one. If you’re buying a house in Savannah in the foreseeable future, it’s a particularly valuable idea to take the time to chat with some of your potential new neighbors.

And while you’re at it, why not bring up a few relevant questions:

Which schools are best?
School quality affects more than just property values. Especially if you have your own kids, buying a house in town is least disruptive when their new school is the best one available. You’ll make the soundest choice by comparing more than one parent’s opinion.

Is there a neighborhood watch?
You will have already aimed for the safest area possible. Now, getting involved with an active neighborhood watch can further ensure your family’s safety. When buying a house, the presence of a neighborhood watch is a good indicator of some solid community spirit…and if there isn’t one, make sure the reason is that everyone already feels secure in the area.

What events are available in town?
Buying a house means buying a home base for all your family’s activities. By asking your neighbors which local events and activities they enjoy the most, you’ll get a glimpse of the scope and depth of the cultural life that’s going to surround you. As a side benefit, just inquiring shows you as someone who is sociable — and that you’ll be a good new neighbor to have!

The simple act of reaching out in this way lets you familiarize yourself with a new neighborhood faster, and ultimately leads to a better-informed long term real estate decision. Especially if the area is new to you and your family, buying a house in town is actually a one-time opportunity to make a host of new friends. We have tons of information available for future residents. If you’re even considering buying a house in the Savannah area, don’t hesitate to call us today!

Deep Water Home on Talahi Island

Click here to see more pictures and detailed information. Schedule a Showing Search All Homes For Sale Wilmington Island Homes For Sale Homes Close to Where You Work What is Your Home Worth? Free List of Foreclosed Homes For Sale Ben Farmer Ben Farmer Realty 912-692-1085 Questions? Schedule a Showing! MLS#: 106547 L2L Virtual Tours

Part 2: What First Time Savannah Homebuyers Aren’t Told

Of all the things first time homebuyers in Savannah are told, some that turn out to be pretty important are too often overlooked. Here are four items first time homebuyers will find useful to know:

4.         Remodeling costs more than you think

You’ve found a fixer: your energy is to be applauded. But before you write that offer, if you are one of our Savannah first-time homebuyers, be certain to have penciled out the bottom line cost of bringing the home up to the standard you require to be move-in ready. You may well be able to live with some items that you will fix over time, but in all areas, budget 20% more than your estimate.  

5.         What matters is what the bank’s appraiser thinks the house is worth

Getting a loan approved isn’t as simple as having great credit and a down payment. Your offer also has to pass the bank’s approval process before they will okay the loan.

6. Getting inspected doesn’t mean there won’t be problems

Should you skip the inspection process? Absolutely not. You need to know if the home is structurally sound. But owning a home involves continuing expenses -- and problems can pop up even on Day One of ownership. Make sure you have funds set aside.

7. Buying your first house can be stressful…really stressful!

One of the absolute best pieces of advice I can give is to relax — expect the unexpected! Buying your first house is scary only if you allow it to be. Since it is all but certain that there will be ups and downs, allow the possibility that you may not get any particular house. Veteran homebuyers come to understand the cost of overly emotional involvement — when you do, too, you will be better able to roll with the punches…and to make financially sound decisions.

If you missed the first three items in my list, check back to Part 1 – or just call us! I’ll fill you in on everything Savannah first time homebuyers need to know.

7 Things No One Tells Savannah First Time Homebuyers

First time homebuyers in Savannah are told a lot of things —

“Save your money,” their parents advise.

“Location, location, location!” their friend’s friend cautions.

Reasonable advice, for certain. But there some important elements of the home buying process which a typical Savannah area first time homebuyer doesn’t usually hear. I’ve listed some of the most important ones, in no particular order:

1.                  Mortgage rates you see advertised aren’t usually what you get

The banner ads are everywhere online: “3.2% rates!” “No money down!” But the truth is, mortgage rates vary greatly. The only way you’ll know what rates you actually qualify for is to go through a complete mortgage application including credit pulls and income verification. One more point to consider: online mortgage calculators, while handy, can be deceptive if you do not factor in the real cost of tax, insurance and PMI when you’re looking at an FHA-loan. 

2.                  Every Tiny Bit of Debt Counts

Think that $1400 left on your Visa isn’t going to matter? Think again. Every iota of debt weighs in when your credit is scored. What many first time homebuyers aren’t told is that when you apply for a mortgage, nearly every element of your financial history is going to be analyzed with a fine-toothed comb. All debt will be factored in as the bank figures out how much it is willing to lend. Standards have stiffened, so the earlier you dispose of even small issues, the better.

3.                  Your Choice of Agent Makes All the Difference

Let me guess: your friend’s friend also has an agent to recommend (she carpools with his sister’s next door neighbor). There’s no reason you shouldn’t interview her: maybe that’s the right fit for you. But don’t just sign up with the first agent you find: this is a working relationship that can shape your family’s future. Your agent’s connections, experience, and market knowledge will be key — and can well make the difference between your writing an offer that gets accepted or not.

(Coming Tomorrow: Another 4!)

Three Money-Saving Tips for Your Savannah Mortgage

Your mortgage: you only think about it once a month (if you’re on autopay, maybe not even that often). Why worry about it? If it ain’t broke, don’t fix it, right? 

Wrong!

Like all aspects of your big-picture financial planning, keeping an eye on that mortgage can be an extra wealth-building move. I can point to three reasons why re-evaluating your mortgage could pay dividends:

Down, Down, Down…

Ok, with interest rates continually making headlines, this one might be a no-brainer. But some folks don’t realize just how attainable significant savings may be: a drop of just a single percentage point in the Savannah mortgage rate can make a gigantic difference. A general rule of thumb is that if you can lower your interest rate by a percent or more, it usually makes sense to refinance. It’s certainly worth looking into.

Pay More Sooner (Build Wealth Quicker)

Nobody wants to part with more hard-earned cash than necessary, but extra money out now can wind up saving a lot of greenbacks later. Making just one extra payment a year will have you owning your home free and clear sooner – whereupon those payment dollars become yours!

Sound too painful? It needn’t. See if you can set up bi-weekly payments of half your monthly mortgage amount. You'll be making 26 payments annually: the equivalent of 13 monthly payments! Confirm with your lender that the extra payments go toward principal.

Eye That Equity

If you’ve got a PMI payment, you know that extra insurance doesn’t come cheap. So why make the extra payment a single month longer than necessary? By law, your lender is required to stop charging you PMI after you accrue 22% equity in your home. But in many cases, once you hit 20% equity, simply writing a letter to your lender will prompt them to allow you to stop paying PMI then and there.

For most of us, our home in Savannah is one of the largest investments we’ll ever make. Got a real estate question? We’re here all the time to supply you with friendly help and advice!

Local Businesses Helped by Housing’s ‘Snowball Effect’

The Weather Channel has nothing to do with it. What’s happening up in the ski resorts, likewise. The ‘snowball effect’ being discussed in print and on TV won’t soften anytime soon (even if the groundhog was right about winter being over)

Punxsutawney Phil Predicts an early Spring
(and an economic thaw?)

This is an economic snowball -- one that’s gathering momentum following what CNN’s Money website describes as “the best year for U.S. real estate market in five years.” Businesses that stand to benefit from growth in the Savannah housing market are watching closely.

The Wall Street Journal’s snowball report took form in last Monday’s Marketplace section, where the top headline read “Housing Recovery Opens Spigot…Makers of Products From Carpets to Air Conditioners Feel Effects of Rebound.”

It was even more heartening as a counter to last week’s government indications that the greater economy seemed to slow. The housing sector’s performance was so strong it acted as a tonic to its many associated industries: among them, many Savannah retailers.
The snowball effect was noted widely. The company that makes Carrier air conditioners said that orders rose 20%; Honeywell International reported the “first sign of life we have had in a while.”

Locally, fingers were crossed that Savannah businesses will be swept up in the snowball. National suppliers expected that to happen. “Housing is what we see leading the economy out of the doldrums,” according to the CFO of United Technologies Corp. The WSJ reported evidence that Americans are spending more to build and refurbish their properties.

With sales of existing housing registering the largest annual jump since 2004, it should come as no surprise if Credit Suisse’s Daniel Oppenheim proves correct in predicting a 7%-8% rise in home improvement spending. He expects it to keep going for at least the next two years. That’s a pretty solid forecast, and in line with what most observers are saying.

 All in all, the boost from the housing recovery is one snowball no one seems to think is likely to melt soon  -- regardless of what Punxsutawney Phil has to say about it.