We no longer need to read the headlines to find the stories.  Now, it’s personal.  Possibly a friend, or maybe it’s you… A job loss, a significant illness, divorce, an unexpected bill and suddenly it’s a struggle to pay your mortgage.  What lies ahead? What if you have more “month” leftover than “money”?  Is foreclosure inevitable? Fear begins to creep in….

    One of the saddest statistics I recently learned was that 7 out of 10 homeowners who go into foreclosure did so without the intervention of a professional.  Was this because they reached out but were told “sorry, you owe more than your house is worth so I can’t help you?” or did they simply not know there were other options?  Either way, the result is tragic.  Now, more than ever, it is important to seek the help of an educated, professional real estate agent!     

     After feeling helpless when a friend lost her house due to foreclosure, I decided that it was time to do all I could to become a part of the solution, not the problem.  As a result, I have just returned from Denver, Colorado after completing an extensive program to earn the Certified Distressed Property Expert designation.  As a CDPE designated REALTOR, I now have specialized training to help homeowners explore their options to avoid foreclosure.  Options range from reinstating your loan, mortgage modification, or even a “short sale” where the lender agrees to accept less than the full amount of the mortgage as a payoff. 

     If you or someone you know is facing a possible foreclosure, don’t be afraid to seek help.  Time is of the essence before options run out.  I can help explore options with complete confidentiality.  Even if it’s just to answer a few questions, give me a call.  I promise to do all I can to help…

Martha Hale, CDPE
(205) 222-4224
(800) 291-3308 

I was out today with a client looking at new construction garden homes on a cold, dreary morning… the sort of day where I would expect to be the only person who dared venture outside.  Afterall, nothing is selling these days, right?  WRONG!  The traffic I witnessed lets me know that there is hope for a “better than average” real estate market for 2009!  The interest rates are just too low to ignore and the builders are offering some AWSOME deals! 

Most of the homes we looked at were built by Signature Homes, a strong and healthy company in the local Birmingam market.  As low as the rates currently are, they were offering a 2 point buydown of your interest rate which would translate into 1/2% interest rate reduction on a 30 year fixed rate loan!  This is not just a temporary 1 or 2 year buydown either…  They were also offering to pay closing costs when using their affiliate mortgage company, Wells Fargo. Even when prices are not dropping, deals are out there if you just ask!

What was so special about Signature Homes?  They have built their business model around the RAVING FANS and it shows!  They now boast a repeat/referral business rate of 40% when the average repeat business is closer to 10%.  The proof of their success is also visible in the traffic!  Cars and people were everywhere in their communities going through their model homes and touring the spec homes.  I guess no one told all these buyers that the market is supposed to be slow!  So where were you today?

While attending a continuing education class recently offered by the Council of Residential Specialists (CRS), I got into a discussion about square footage with outgoing Alabama Association of Realtor’s Immediate Past President Sherry Dinges.  While I am familiar with the downside of NOT having access to accurate square footage statistics, Sherry was able to enlighten me on downside of HAVING such information.  There is no clear answer on whether to disclose it or not, here is some food for thought. 

BENEFIT or NOT?
Square footage does allow for a statistical comparison of two homes.  When  no square footage statistics are available, how do you compare one 3BR 2 BA home to another without physically seeing the home and comparing the two?  With square footage out of the equation, it becomes a matter of features, location and a rough general size comparison.

Square footage would help determine the “price” of living closer in to town or being further out in the suburbs.  But then again, square footage is not the determining factor in whether you want to live close to downtown or not.  Everyone has their own set of priorities and vision of what lifestyle they are looking for.  No amount of money could make some people want to live in a 1930’s bungalow in Homewood, but others are seeking that specific style home for all the personality and sense of community that it offers!

Square footage statistics offer the perfect answer for the analytical/engineer personalities who want to justify their emotional home buying decisions with numbers, but otherwise, we have managed to survive without them for over 20 years in Birmingham… I personally feel that if it is a matter of importance to the purchaser, I’ll bring the measuring tape… but I know which end I’ll be holding!

This should grab your attention if you are thinking of buying or selling a home…. I first heard about it last weekend while in Austin TX with my daughter as we were looking at housing options for her…. As we viewed homes with  Carol and Ernest Pease of Keller Williams, the referred to the square footage of each home we saw.  I laughed and mentioned that in Birmingham, we do not disclose square footage and if ANY reference is made, we always qualify where the information came from. 

Well, today it made the headlines.  As reported in our online magazine, REALTOR.org :

Court Ruling: Square Footage Must Be Accurate

A Texas appeals court has upheld the principle that size matters in a case in which the square footage of a home sold in the central part of the state wasn’t what was advertised.

The buyers, who sued and won against the real estate professionals who handled the sale, told the court that they bought the property largely because they thought they were paying a lower rate per square foot than other sellers in the area were asking.

The house turned out to be 253 square feet smaller than the practitioner put on the information sheet and on the multiple listing service posting.

A jury awarded the purchasers damages and held the real estate professionals liable for misrepresentation and fraud. The court of appeals in Austin upheld the decision, even though the couple had moved into the home 30 days prior to settlement and the information came from tax records filed with the local municipality.

The appeals court said the real estate professionals had a duty to get the information right and the buyers shouldn’t have to pull out a tape measure.

Source: United Features Syndicate, Lew Sichelman (11/21/2008)

What does that mean to you?  Be sure you know and trust your REALTOR, that they do not say or do anything that will increase your liability in matters regarding the purchase or sale of your home!  I simple remark or an unverified comment can cost you (and them) thousands!   Hire a professional.  Check their credentials.  It truly makes a difference!  Wondering who to call?  I might happen to know someone who makes every effort to stay informed and protect your best interests…. ME!  Give me a call (205) 222-4224 to learn more.

Mortgage Rates Post a Record One Day Drop
 
Great news for all homeowners!  Yesterday, yields on current coupon mortgages fell 60 basis points, more than one half per cent.  With this recent attempt to target assistance toward consumers and homebuyers, the Federal Reserve is generating genuine optimism with their move to purchase mortgage-backed securities.  “This action is being taken to reduce the cost and availability of credit for the purchase of houses, which in turn should support housing markets and foster improved conditions in financial markets more generally,” the Fed said.

A month ago, thirty year interest rates were 6.46%.  Today, November 26th, a thirty year fixed rate loan is 5.375%.  On a $175,000 loan, that payment will drop from $1,095 down to $975 a month.  That is a savings of $120 a month!

What are you waiting for?  If you have been waiting for the best opportunity to buy a new home, act now to take advantage of this interest rate window while there is good inventory to choose from.  Don’t wait until rates rise or reduced inventory allow prices to rise again. Or if you just want to refinance your existing home, I have the names of several great mortgage lenders… Whatever your real estate need, give me a call today!  I’d be more than happy to help!

What is all this talk about a buyer’s market and how can you truly tell the difference?  It’s all a matter of suppy and demand… Lots of buyers with very few homes to pick from creates a Seller’s Market… A “Be willing to pay my price or I’ll find someone else who will” mentality.  That is what we witnessed for the past several years. 

But times have changed.  With lots of homes on the market and very few buyers, we now are experiencing a market shift into a Buyer’s Market.   Now, sellers are thrilled to get an offer on their house.  According to Gary Keller’s new book “Shift,” a buyer’s market is defined as having more than 7 months of inventory worth of homes on the market.  The Birmingham MLS statistics certainly reflect this market shift as well. From a 4.43 average months of inventory in 2005 to a 10.03 average for 2008 so far, we ARE in a buyer’s market!

So what does that mean?  It is time for anyone who has ever THOUGHT about buying to get out there and start shopping for a home!  Though the average prices of homes sold in the Birmingham area have not dropped, buyers are finding that their dollar is getting more bang for the buck today.  This is the time to “buy low” especially if you don’t have anything to sell.  First time home buyers, renters and those trading up… it is time to take action!  Interest rates continue to be at a 30 year low and for every 1% that the interest rate goes up, it costs you $10,000 in buying power for your next home!  You will never be sure if the market has reached the bottom, but once it begins to go up, it’s too late. 

Now is the time… get in touch with your favorite realtor to find the deal you’ve been dreaming of and start packing! 

Welcome to Martha Hale’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Birmingham.