Alpharetta Cumming Lake Lanier Real Estate Blog: February 2008

Owner's title insurance is essential when owning a home or any piece of real property. Title insurance provides a guarantee of ownership that can protect your interests should any title issues arise. Most homeowners may recall seeing something about title insurance on the settlement statement at closing, but don't be too quick to assume that you are covered.

Most lender's require a Loan Policy when they issue you a mortgage. The Loan Policy is usually based on the dollar amount of the mortgage. It protects the lender's interest in the property should a problem arise with the title. This Policy, however, does not protect any equity you have in the property above the loan amount.

It is an Owner's Policy that protects you, the owner of the property. It can be purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property. It is generally issued for the purchase price of the real estate.

This is not a time to be frugal. Do not try to save a few hundred dollars just because a title search was run showing a clear title. Issues can arise that can cloud a title even after a search was done. Just a few common issues that can arise are incorrect legal descriptions, unpaid taxes, forgery & fraud, conveyance by a minor and missed easements.

Don't find yourself sitting on a piece of property that may not be yours without title insurance. Consult with a real estate attorney and your real estate agent concerning your real estate transaction to make sure your interests are protected.

Join thousands of fellow athletes on March 2, 2008, at 7 AM for the Second Annual Alpharetta Marathon & Half Marathon. Awards for top marathon finishers in each age group allow for a great chance at winning a portion of the $4,000 in prizes at this Boston Marathon-qualifying race.

Athletes will run either a full (26.2 mile) or half marathon (13.1 mile) course through beautiful North Fulton County. Runners will be treated to water stations every 1.5 miles along the course, with bands and cheer groups adding to the festivities. Hundreds of cash prizes will be awarded as part of the Marathon’s celebration of Alpharetta’s 150th birthday. Don’t miss the chance to be part of Alpharetta’s biggest sporting event of the year! Visit www.alpharettamarathon.com for more details.

As of today, registration for the race will only take place at the Health and Fitness Expo Friday, Feb. 29 and Saturday, March 1, sponsored by Life Time Fitness at 855 North Point Parkway. There is no race day registration.

And, if you are unable to join in the festivities of Sunday's event, but need to travel in or around Alpharetta, please make sure to visit www.alpharetta.ga.us for a list of road closures.

The City of Cumming decided on Tuesday to allow those using City Water to be able to now hand water their lawns, and as of April 1st, fill their swimming pools. The city council voted 6-0 to adopt these new exemptions which were recommended by Gov. Sonny Perdue earlier this month.

Many have been confused by Perdue's proposal to relax watering restrictions. This was not a statewide relaxation of water restrictions. This was to let the local water permit holders know that they could adopt the exemptions he put forth, if they chose. So now, across the state, local counties & cities are meeting to decide whether or not their communities will be able to do any outdoor watering or fill their pools.

BUT, don't get too excited yet. The key to knowing whether these exemptions apply to you or not is to look at your water bill. The city of Cumming and Forsyth County offer separate water and sewer service. As of this week, ONLY the City of Cumming water customers are able to take advantage of these exemptions, and not Forsyth County Water customers.

The county is still considering whether to adopt the governor's proposal. County commissioners are expected to discuss the matter at a work session on Tuesday, February 26th at 5pm.

As for City of Cumming Water customers, under Perdue's plan, hand watering is allowed for 25 minutes per day up to three days a week. Newly installed landscape can be watered and, starting in April, outdoor swimming pools can be filled through September. The state defines hand watering as one person with one garden hose with a spray nozzle that shuts off when released. Watering is restricted to the hours between midnight and 10 a.m. on three days of the week. City water customers who have odd-numbered addresses may water on Tuesday, Thursday and Sunday and those whose addresses end in even numbers, may water on Monday, Wednesday and Saturday. Watering is not permitted on Fridays.

For more information, city water customers can call (770) 781-2020.

Check out the Weekend Rates provided by Covenant Mortgage Corporation:

Conforming Loans: Loan amounts $417,000 & under
30 Year Fixed - 6.00%
15 Year Fixed - 5.50%
3/1 ARM - 4.875%
5/1 ARM - 5.00%

Jumbo Loans: Loan amounts over $417,000
30 Year Fixed - 6.875%
5/1 ARM - 5.875%
10/1 ARM - 6.625%

For more information regarding rates and the various loan options now available, visit www.mycovenantmortgage.com.

The Home & Design Show will be held at the Cobb Galleria Center Friday, February 22nd - Sunday, February 24th. This is a great place to explore an amazing selection of the latest home products and services for virtually every area of your home, indoors and out. Plus, you can enjoy workshops and seminars to help you get started on the projects that make sense right now, and the ones that will pay dividends in the long run.

For more information including exhibitors, celebrity guests and more, or to purchase advance-sale tickets at $2 off (adult tickets) visit www.atlhomeshow.com. Tickets are also available at the box office outside the show. Parking is free.

Happy Valentine's Day! Candy, flowers, romance and mortgage rates? It's Valentine's Day, so how are mortgage rates doing as we move towards Spring? According to Freddie Mac's Weekly Primary Mortgage Market Survey, rates are as follows:

30-yr Fixed Rate Mortgage: 5.72% with fees & points averaging at 0.4
15-yr Fixed Rate Mortgage 5.25% with fees & points averaging at 0.4
5/1-yr Adjustable Rate Mortgage 5.19% with fees & points averaging at 0.4
1-yr Adjustable Rate Mortgage 5.00% with fees & points averaging at 0.4

Fixed Mortgage rates increased slightly over the past week, while the ARM's lowered slightly. Still, rates are lower than last year at this time. This combined with a Buyer's market make for a great time to buy your next home, secondary home, or investment property.

Contact Mike & Melody Vanderhoff with Vanderhoff Real Estate today. We can assist you with your real estate questions and set you up with a custom property search to help you find the home that fits your needs. Rates are low, and the market has a high inventory of homes available. It's a great time to buy your next home! Contact us today at 770-888-9269 or info@VanderhoffRealEstate.com to get started.

If you have made an energy efficient change or upgrade to your home, you may be eligible for a federal tax credit. Many are becoming proactive about making their homes more energy efficient. These tax credits can help recoup some of the cost for certain efficiency upgrades. Tax credits are available for many types of home improvements, including adding insulation, replacing windows, and certain high efficiency heating and cooling equipment.

Tax time will be here before we know it and now is the time to start thinking about where your invoices or receipts may be stored. For more information and details on how to file for your federal tax credit, please visit Energy Star online at www.energystar.gov. There you will find the appropriate forms and a list of frequently asked questions.

If you purchased a home in Alpharetta over the past year, you need to make sure you have filed for your homestead exemption. Alpharetta residents have until March 1st to file this year. You may apply for exemptions year-round, however, you must apply by March 1st to receive the exemption for that tax year. Any application received after this date will not be processed until the following tax year. You may also qualify for additional exemptions. We recommend you check with the City of Alpharetta at 678.297.6060 to make sure you are taking advantage of all exemptions available to you. Or to download the 2007 Property Tax Guide, visit www.alpharetta.ga.us.

Also, do not forget to read up on all the income tax deductions that are allowed by Homeowners. Laws are always changing, so please make sure to speak with a tax consultant to get the most deductions on your taxes. Here are just a few items that you may be able to deduct on your 2007 income taxes:

* Your property taxes.

* The mortgage interest on your primary residence, as well as any secondary residence you own. (There are limits, but relatively few taxpayers are affected.)

* The interest on up to $100,000 borrowed on a home-equity loan or home-equity line of credit, regardless of the reason for the loan.

* Points you paid when purchasing the house (or convinced the seller to pay for you).

* For homes purchased in 2007, the premiums paid for private mortgage insurance in 2007. (The right to this deduction disappears as adjusted gross income rises from $100,000 to $110,000 on a joint return and from $50,000 to $55,000 on a single return.)

* Home improvements required for medical care.

* Moving Expenses (under certain criteria including job transfer). If you qualify, this can also cover the expense of moving a pet.

Should you have any questions please do not hesitate to give us a call, we are here to help. And, if you know anyone looking to buy or sell real estate, please refer them to us …we appreciate your business! www.VanderhoffRealEstate.com

The planning commission in Milton agrees that a moratorium should be placed on further new developments in the Crabapple area until the Comprehensive Land Use Plan is completed. The Plan should be completed in approximately six months. The commission will draft a letter signed by all seven members requesting this moratorium. The fate of which will be decided by the city council.

The Forsyth County Schools redistricting process is now underway, and scheduled to be impemented for the 2009-2010 school year. Five new schools will be opening in 2009 as follows:

Brookwood Elementary: a two-story school located on Vaughn Drive.
Whitlow Elementary: a one story school located on Castleberry Road
Haw Creek Elementary & Lakeside Middle: two two-story schools located adjacent to each other on Echols Road.
Lambert High: to be located next to Sharon Elementary on Nichols Road. Lambert is a two story design similar to West Forsyth High. Lambert will open without a senior class.

These schools are funded Forsyth County voters who approved the 2006 Special Purpose Local Option Sales Tax (SPLOST) and bond referendum. New lines are also being redrawn to accommodate the overcrowding at the existing schools.

For a summary of details on the timeline for the redistricting process, who's on the committee, an informational video and much more click on this link for a great article from cumminghome.com.

1031 Exchanges can be a great option, but is it right for you? What is a 1031 Exchange? According to Wikipedia, the following is an excellent description:

"A 1031 Exchange, also known as a Like Kind Exchange or Starker Tax Deferred Exchange (named for an investor who challenged and won a case against the IRS) is a transaction under United States law which specifies under section 1031 of the Internal Revenue Code, 26 U.S.C. § 1031 the following:

'No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held either for productive use in a trade or business or for investment.'

This allows taxpayers to defer all of the capital gains taxes resulting from the sale of investment property, when they use a Qualified Intermediary, follow the IRS guidelines, and use the proceeds of the sale to buy more investment property within 180 days of their sale. In order to obtain full benefit, the replacement property must be of equal or greater value, with equal or greater debt, unless the taxpayer adds cash to the deal to replace debt instead, and all of the proceeds from the relinquished property must be used to acquire the replacement property. The taxpayer must have assigned his interest in the relinquished property to a Qualified Intermediary prior to the close of the sale, so that the taxpayer has lost control of the funds before he has any opportunity to obtain them.

At the close of the relinquished property sale, the proceeds are sent by the closing agent to the Qualified Intermediary, who holds the funds until such time as the transaction pertaining to the replacement property is ready to close. Then the proceeds from the sale of the relinquished property are deposited by the Qualified Intermediary to purchase the replacement property, which is then delivered to the taxpayer, all without the taxpayer ever having 'constructive receipt' of the funds.

The prevailing idea behind 1031 Exchange is that since the taxpayer is merely exchanging one property for another property(ies) of 'like-kind' there is nothing received by the taxpayer that can be used to pay taxes with. All the gain is still locked up in real estate and so no gain or loss can be claimed."

If you would like more information about 1031 Exchanges, or other real estate transactions you may be considering, please contact us today at info@vanderhoffrealestate.com or 770-888-9269.

Whether you recently bought one of the many foreclosures in the area, or your older home needs a new touch, the Atlanta Garden & Patio Show has a lot more than just outdoor improvements. The Atlanta Garden & Patio Show has exhibits and seminars in a variety of topics, including kitchen appliances, fixtures, flooring, roofing, siding, concrete, windows, heating and air conditioning, patios, insulation, landscaping and lawn care, and a whole lot more! The show also has activities for the kids, cooking demonstrations from local chefs, new product launches, and great home design ideas.

The Atlanta Garden & Patio Show will be this coming Thursday, February 7th - Sunday, February 10th at the Cobb Galleria Centre. For more information, including ticket prices, directions and a list of exhibitors, or to purchase tickets visit www.atlantahomeshow.com.

And, if you can't make this show, be sure to check out the Spring Atlanta Home Show at the Georgia World Congress Center March 13th - 16th.

Mortgage rates have bounced back slightly this week after a four week downward trend. The Federal Open Market Committee announced another cut in the target federal funds rate by half of a percentage point in their most recent scheduled meeting. This came on the heels of the Fed's rate cut of three-quarters of a percentage point the previous week. The movement in fixed mortgage rates was broadly consistent with the movements of Treasury bonds over the week. According to Freddie Mac's Weekly Primary Mortgage Market Survey, rates are as follows:

30-yr Fixed Rate Mortgage: 5.68% with fees & points averaging at 0.4
15-yr Fixed Rate Mortgage 5.17% with fees & points averaging at 0.4
5/1-yr Adjustable Rate Mortgage 5.32% with fees & points averaging at 0.4
1-yr Adjustable Rate Mortgage 5.05% with fees & points averaging at 0.7

Last year at this time, the 30-year FRM averaged 6.34 percent to give you an idea of how rates have changed over the past year.

If you are in the market to purchase a home, please contact Mike & Melody Vanderhoff with Vanderhoff Real Estate today. We can assist you with your real estate questions and set you up with a custom property search to help you find the home that fits your needs. Rates are low, and the market has a high inventory of homes available. It's a great time to buy your next home! Contact us today at 770-888-9269 or info@VanderhoffRealEstate.com to get started.