At Home In Cobb

Prospecting buyers often ask what the difference is between an REO (real estate owned) and HUD (Department of Housing and Urban Development) home.

REO home is a property that went into foreclosure and is now owned by the lender/bank/mortgage company. The lender was unable to sell it at the courthouse steps, hence it is listed by real estate brokers.

HUD homes are properties financed by an FHA insured loan that went into foreclosure and are thus aquired by HUD. These homes are listed by PEMCO as well as real estate brokers.

At an Auction lenders and/or desperate homeowners try to sell their homes. Often time a portfolio of several homes is composed. A prospecting buyer needs to have these properties professionally inspected prior to making a bid, because what you see is what you get, and what you don't see you will also get. It is possible to get a good home at a low price at an auction, but most of the time there is a good reason why the price is low. It has been said that the best real estate deals are those that didn't sell at an auction.

Before a property goes into foreclosure the homeowner may have had years of hardship. When one is hanging on for dear life, home maintenance and repairs usually have the lowest priority on the to-do-list.

Call me if you are interested in receiving REO and HUD home lists. 770-851-6171 or email kris@eastcobbhomesales.com

Both presidential candidates are continuously harping on Taxes. They both quote that their system would be the most beneficial to the American citizens. So, I went on a quest to find out which candidate offers the best tax reduction. Here's what I found:

Less than $19,000 income    Obama offers $567     McCain offers $21
$19,000-$37,000                            $892                        $118
$37,600-$66,400                            $1118                      $325
$66,400-$111,600                          $1264                      $994 
$111,600-$161,000                        $2135                       $2584
$161,000-$227,000                        $2796                       $4437 

These numbers speak for themselves.

Source: Tax Policy Center

It seems that the real estate market gives cause to ANGER.
When it's a seller's market, the buyers are angry because prices are too high. When it's a buyer's market, sellers are angry because their neighbor sold his house for thousands more a year ago.

Lately, everybody seems to be living in FEAR.
Buyers are afraid to buy because they think prices are going to go down more.
Sellers are afraid their house will sit on the market for a year or more and will only sell after numerous price reductions.

And then, there's HOPE!
Buyers offer low-ball offers demanding everything fixed hoping the seller will be desperate enough to accept it.
Prospecting buyers hope that the interest rates will stay low until they have made a decision.
Homeowners hope that the value of their home will not be affected by this foreclosure crisis and will continue to grow at a steady pace.
Real estate agents are always living on the hope to catch a buyer or a seller, whatever type of market it is.

Talking about real estate agents...
Two years ago everybody and their brother had a real estate license, or knew someone who was an agent. They all joined the agents' ranks in the hope to get a slice of the real estate pie.
Now that the bubble has burst, it's tough to find a full time agent. Houses are listed without pictures. Listing agents don't answer their phones and emails. Now, that's frustrating for sellers, buyers, and buyer agents!

When will the days of Happy Seller + Happy Buyer = Happy Agent come back? What will it take to bring those HAPPY DAYS back again?

Stunning Nesbit Lakes home with ultimate technology. Heated salt water Avalon pool with waterfall and slide. Custom home theater with Art Deco decor includes light and sound control, accoustics, floor sub woofers, side rails, elevated platform, sconces, and much more.

Kitchen with double ovens, granite counter tops, stainless steel appliances. Separate breakfast room with desk. Sunroom. Keeping Room with 40" t.v., Lynnfield tower speakers. Family Room is equiped with wet bar, dishwasher and flat screen tv. Two workout rooms with mirrors and wall-mounted tvs.

3 car garage. Level driveway. Lake view. Private wooded backyard.

5 Bedrooms, 4.5 Bathrooms. $625,000.

Soon our furnaces will be keeping us warm during the Winter months. Now is the perfect time to have a yearly inspection of not only the furnace, but also fireplace, woodstove, and chimney.  

Every year thousands of fires are caused by space heaters and dirty fireplaces. Use those space heaters wisely and never leave them unattended.

Have a safe Winter season.

February 2009, TV will switch to digital to free up broadcast frequencies for police, fire, and other emergency operations.

If you decide to replace your analog t.v. set, you have a couple options to dispose of it:

• Donate to a charitable organization, but make sure they still want analog t.v.s
• Ask the retailer of your new set if they'll take and recycle your old set
• Check out www.earth911.org/electronics, www.mygreenelectronics.org or www.nrc-recycle.org/localresources.asp. Some websites will let you search by zipcode to find electronic recyclers.

After February 2009, analog t.v. set wil need a converter box. These converters may cost between $50 to $70. The government is offering a $40 off coupon. Download the application at www.dtv2009.gov or call toll free 1-888-388-2009.

You've most probably seen the commercial on t.v. or a loan officer may have called you to offer a Reverse Mortgage.

A Reverse Mortgage is a home loan that lets a homeowner convert a portion of the equity into cash. You need to be 62 or older and own the home outright or have a low mortgage balance. It needs to be repaid when you sell the house or when you die.

I will not bore you with the details but go straight to the bottom line. A Reverse Mortgage comes with an outrageous price tag and is laced with fees that reduce your precious equity. These fees need to be paid upfront at closing.

Example: A 74 year old borrower in a $250,000 home would pay about $25,000 in costs and this is not including the interest.

My advice is therefore to let your loan officer prepare a clear cost picture and pay attention to the bottom line before you sign up. It's also a good idea to talk it over with your CPA or trusted Realtor®.

For more info visit www.hud.gov or www.aarp.org