Alpharetta Cumming Lake Lanier Real Estate Blog: January 2011

Pre-Sale Renovation: Home Seller Do’s and Don’ts

You’ve probably seen those depressingly cheery home-themed TV shows: a couple needs to sell their house, they have an outdated kitchen, and a designer comes in and proceeds to convince them to renovate the kitchen into a stainless-steel-clad shrine to culinary greatness—for tens of thousands of dollars. In an ideal real estate market, that would add value, but in today’s market, expensive pre-sale renovations, for the most part, aren’t worth it. The numbers bear this out: In general, a home remodel will cost quite a bit more than you’ll get back when you sell; remodels done in 2010 will only recoup 60% of their price when the house is sold, according to Remodeling magazine’s 2010 Remodeling Cost vs. Value survey, done in partnership with the National Association of REALTORS® (NAR).

Two of the areas that potential buyers are often most pressured to remodel before selling are the kitchen and bathroom. Here, we’ll tackle both of those rooms, and let you know what to do—and what to avoid—when considering a pre-sale renovation:

Kitchen
-Don’t put in expensive professional-grade cook’s appliances. You may choose a tricked-out, $10,000 Wolf stove, but the buyer may be a loyalist to Viking. Or, even worse, the potential buyer might be a take-out addict.

-Do, however, service the appliances you have, so that they work perfectly. And, if you have seriously outdated appliances that can be replaced for $1,000 or less (like swapping a dingy old fridge for a basic new one), that’s a good idea. Similarly, if there are any appliances that you lack, which most buyers consider essential, it makes sense to buy one (like a dishwasher—you can get a nice model for under $1,000).

-Don’t replace your cabinetry entirely—even if it’s a little outdated. It’s just too subjective. You might think sleek, white Scandinavian cabinets are the way to go, but you’ll be in a bind if your potential buyer prefers dark wood.

-Do invest in cabinet refacing if your cabinets are extremely outdated. Many refacing companies will give your cabinets a fresh façade for well under $2,000, and it’s a good investment in creating a positive impression of the room without doing a pricey knock-down.

-Don’t go granite crazy. Or marble. Or etched-Murano-glass-accented tile. Spending thousands of dollars on a new countertop and backsplash is downright dangerous, as there are so many different options these days, it’s impossible to find one that will please most people.

-Do hire a professional cleaning company to come in and make what you have sparkle. While this won’t magically make your tile look magazine-spread-worthy, it will certainly make it look a lot better, as discoloration from age often makes tile look even worse.

Bathroom
-Don’t do expensive tub/shower repairs or replacements. Just like with the big-ticket kitchen fixes, this is a matter of taste. If you put in a round jetted tub, what if the buyer wants square? And is an amethyst-crystal steam shower really something everyone will love?

-Do replace dated bath and shower fixtures; this can be done generally quite inexpensively. For instance, if you have a 30-year-old, tiny showerhead, replacing it with a large, rainwater-style model will lend a subtle spa-like quality without costing a lot.

-Don’t replace your smallish vanity with a new, built-in model. A lot of remodelers emphasize the intrinsically relaxing qualities of having all your toiletries, towels and even reading material beautifully organized in one big unit made of high-end wood, marble and chrome. And it is certainly beautiful. But it’s also a risky choice, and a matter of taste.

-Do freshen up the vanity area. Invest in a big mirror and put bright lights over it. And a few hundred dollars spent on a nice faucet is well worth it, as, like the showerhead, it’s a true basic—and updating the basics, in most homes and markets, is all you should be focusing on.

Other tips for redoing your kitchen and bathroom frugally

Kitchen:
-Declutter your counters. A disorganized kitchen is a buyer-deterrent. Clean up the counters and pare down countertop items to the essentials—toaster, microwave, coffee pot and not much more than that.

-Keep your pantry and cabinetry clutter-free too. You don’t have to alphabetize your cereals—just know that potential buyers will probably open those cabinets, so they won’t want a ladle falling out on their head.

-Give your kitchen table or breakfast bar some life. It’s simple—placemats, a colorful vase or two and a tasteful flower arrangement will reinforce the idea that the kitchen is the heart of the home.

Bathroom:
-If you want to add a little life to the wall, try a simple, straight-lined wood or stainless-steel floating shelf with a few candles on it. It’s an elegant, boutique-hotel touch that doesn’t cost much.

-Toss down a colorful floor mat. Bathrooms are often devoid of color; this is a great way to add that color, and a little warmth.

-Again, clear clutter. Even your beauty essentials shouldn’t be on the counter if you’re in the open house stage.


Article By Dan Steward
RISMEDIA, January 25, 2011

Call Mike and Melody if you are want to talk about selling your home.

Labels: cumming homes for sale, get your home ready for sale, presale renovations

CURRENT RATES FOR PURCHASE TRANSACTIONS
Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.75 % Purchase Only
15-yr Fixed = 4.25 % Purchase Only

NEW!
Conforming 5/1 = 3.50 % amortized; 3.75% interest only
Conforming 7/1 = 3.875% amortized
(Consult your Covenant Mortgage Professional for Refinance Quotes)

Jumbo Loans:Loan amounts over $417,000*
5/1 ARM = 4.25%
7/1 ARM = 4.50%
NEW! 30-year Fixed JUMBO = 5.50%
FHA Loans: *
30-yr Fixed Range = 4.625% - 5.00%
NEW! FHA 5/1 ARM = 3.50 % Qualify at Start Rate

Call Phil Now For More Details!
*Based on pricing as of Friday, January 21st, 2010 at 12:00PM.
Prices, guidelines, and programs subject to change without notice. Subject to errors and omissions.
This information is not intended to constitute an advertisement for purposes of the Truth-in-Lending Act or Regulation "Z". It is intended solely for use by Real Estate professionals.
Residential Mortgage Licensee: GA Licensee # 22745, Florida Licensee # CL0800186,
North Carolina Licensee # B-147025, Covenant NMLS # 144774


For More Information Call or Email our Preferred Lender
Phil Blankstein
Mortgage Planner
Cell 678-938-7111
phil.blankstein@mycovenantmortgage.com
NMLS # 251790, GA License# 26422

Labels: Alpharetta, cumming, current mortgage rates, homes for sale

CURRENT RATES (PURCHASE TRANSACTIONS)
Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.625 % Purchase Only
15-yr Fixed = 4.00 % Purchase Only

NEW!
Conforming 5/1 = 3.375 % amortized; 3.75% interest only
Conforming 7/1 = 3.875% amortized
(Consult your Covenant Mortgage Professional for Refinance Quotes)

Jumbo Loans:Loan amounts over $417,000*
5/1 ARM = 4.25%
7/1 ARM = 4.50%
NEW! 30-year Fixed JUMBO = 5.50%
FHA Loans: *
30-yr Fixed Range = 4.375% - 5.00%
NEW! FHA 5/1 ARM = 3.25 % Qualify at Start Rate


*Based on pricing as of Friday, January 14th, 2010 at 12:00PM.
Prices, guidelines, and programs subject to change without notice. Subject to errors and omissions.
This information is not intended to constitute an advertisement for purposes of the Truth-in-Lending Act or Regulation "Z". It is intended solely for use by Real Estate professionals.
Residential Mortgage Licensee: GA Licensee # 22745, Florida Licensee # CL0800186,
North Carolina Licensee # B-147025, Covenant NMLS # 144774


For More Information Call or Email our Preferred Lender
Phil Blankstein
Mortgage Planner
Cell 678-938-7111
phil.blankstein@mycovenantmortgage.com
NMLS # 251790, GA License# 26422

Labels: alpharetta homes for sale, cumming homes for sale, current mortgage rates, milton homes for sale

Comparing Mortgage Rates For
Adjustable And Fixed Rate Mortgages
For some homeowners, electing to take an adjustable rate mortgage over a fixed rate one can be matter of budgeting. ARMs tend to carry lower mortgage rates and, therefore, lower monthly mortgage payment as compared to a comparable fixed rate loan.

Relative to fixed rate mortgages, current ARM pricing is excellent. Freddie Mac's weekly Primary Mortgage Market Survey puts the 5-year ARM mortgage rate lower than the 30-year fixed rate mortgage rate by 1.02 percent.

On a $250,000 home loan, a 1.02 differential yields a payment savings of $149 per month.

ARMs are not for everyone, of course. Over time their rates can change and that can frighten people. An ARM can finish its respective 30-year lifespan with a mortgage rate as much as 6 percentage points higher from where it started. Some homeowners won't like this.
Other homeowners, however, won't mind it. For this group, the ARM can be a terrific fit. Especially with the huge, relative discount in today's pricing.

A few scenarios that should warrant consideration of a 5-year ARM include homeowners that are:
1. Buying a new home with the intent to sell within 5 years
2. Currently financed with a 30-year fixed mortgage with plans to sell within 5 years
3. Interested in low payments; comfortable with longer-term rate and payment uncertainty
In addition, homeowners with existing ARMs due for adjustment may want to refinance into a new ARM, if only to push the first adjustment date farther into the future.

Before choosing to go with an ARM, speak with Phil Blankstein, our preferred Lender, about how adjustable rate mortgages work, and their near- and long-term risks. Payment savings may be tempting, but with an ARM, payments are permanent.

You can reach Phil at 678-938-7111 or email him at phil.blankstein@mycovenantmortgage.com

Labels: alpharetta homes for sale, cumming homes for sale, fixed versus adjustable mortgages

Home staging is more important now than ever because there is so much competition for the eye of a buyer. The house has to “wow” the buyer right from the beginning. And, research shows that staged homes sell more quickly and for more money. An interior designer or real estate staging professional can be a valuable resource. Most work by the hour and can help you find the right furniture arrangement and decorative touches to charm any buyer. These talented resources will help you rearrange and repurpose your existing furniture, artwork and accessories to highlight the best features of your home without spending a fortune. Before you call a professional, here are some things you can recommend to your sellers to get started.

10 Staging Tips To Get Your Home Sold Faster

1. Depersonalize the home by removing family photographs, memorabilia, children’s art projects, sports gear and collectables; anything that would distract a buyer. The purpose of the buyer’s visit is to engage with the home, to “try it on”. It is difficult for buyers to visualize their belongings in a home that is filled with personal items. Less is best.

2. Remove large pieces of furniture that make a room feel crowded. Rent a storage unit or POD if necessary so that you can make the rooms feel spacious. Arrange furniture so that rooms feel open and bright and walk ways are generous. Imagine what the room will look like when photographed. Will it look like a magazine photo? If not, remove more items. The buyer will most likely see the photographs first, so this is an important task.

3. Stage each room so that the buyer knows its purpose. For example, if you are currently using your formal dining room as an office, remove the desk and replace it with a dining table and chairs so that the buyer isn’t questioning the floor plan. Add a few decorative items that add a pop of color and pizzazz.


4. De-clutter countertops, closets and cabinetry. Clean countertops and closets so that they have the bare minimum. Arrange items in the cabinets so that they are well organized. Buyers will open closets and cabinets and make a judgment about the maintenance of the home accordingly. If items are neatly arranged and orderly, they will infer that the home has been well maintained.

5. Go room by room and check paint on walls and baseboards. Make any necessary repairs to sheetrock. A thorough cleaning and a fresh coat of a neutral paint will make the room feel and smell fresh. Clean carpets and flooring so that they sparkle. Replace worn carpet if necessary.


6. Lighten and brighten rooms so that they look large and happy. Replace light bulbs with new ones, avoiding the low wattage energy efficient ones. Remove heavy window coverings. Clean blinds and shutters. Clean windows inside and out so that nothing obstructs the light and views from the windows. Trim trees or shrubberies that interfere with the light.

7. Make minor repairs like re-caulking tub and shower, fixing dripping faucets, changing AC filters, balancing a ceiling fan, or any other repair that indicates that the property is well-maintained.

8. Remove any evidence of pets or animals, especially litter boxes and bedding. Pay close attention to and eliminate pet odors. Bad odors are always deal breakers.

9. Check the drive up curb appeal of the home. Mow the grass; weed, edge and mulch flower beds. Add some colorful perennials around the front of the home. Cut back or remove overgrown shrubbery. Trim trees. Place colorful pots of flowers by the front door. Check the exterior paint. Repaint the front door and replace old hardware. Remove toys and sports equipment. In winter months, consider sowing winter rye grass so that the yard pops with color when all the others are brown. If a home does not have curb appeal, the buyer may never come inside.

10. Give the home warmth and a touch of pizzazz. Spruce up the bedrooms with new bedspreads and some new pillows. Hang fresh towels in the bathrooms tied with ribbon or bows and remove toiletries. Replace worn mats and rugs. Add a large mirror over a dresser or low piece of furniture to add depth to a small room. Set the dining table with china. Check with a design professional for decorative touches that can add charm and highlight the special features of your home.

Call Mike and Melody about getting your home sold now!

Labels: best realtor in town, List your home with us, sell your home fast

$50 Million Mansion for only $18 Million

This unbelievable property sits on 72 acres in Cumming Georgia. The home is over 35,000 Square Feet. It has a 9 hole golf course, a movie theater, a bowling alley and all the things you would expect in this quality property. It has 7 bedrooms, 9 full baths, 11 half baths and a 20 car garage that doubles as a grand ballroom.

Bring your proof of funds and we will arrange to show it to you. Give us a call at 770-888-9269

This property is listed with Beacham and Company Realtors.

Labels: best realtor in town, estates for sale, your real estate agent

All Forsyth County Senior Services will be closed again today Thursday January 13th. Friday's schedule is currently under evaluation and will be announced Thursday afternoon.

Mortgage markets gained last week as a combination of safe-haven buying and an improving economic outlook attracted new buyers. Demand for mortgage-backed bonds outweighed supply and conforming and FHA mortgage rates edged lower.

Last week marked the second straight week that mortgage rates fell. Rates had risen over the previous 7 weeks.

According to Freddie Mac's weekly mortgage rate survey, the national average rate for a 30-year fixed rate mortgage is 4.77 percent with an accompanying 0.8 points required.

This week, with no new data due for release, look for last week's two biggest stories - jobs and debt - to carry forward. The first such story relates to jobs.

Friday, the Bureau of Labor Statistics released its monthly Non-Farm Payrolls report. Consensus estimates were for 150,000 net new jobs created December, with "whisper numbers" pegging the number as high as 250,000. Mortgage rates increased on the chance that the rumors were right.

It turned out, they were not.

Accounting for revisions to past months' data, December's jobs data was in-line with expectations, resulting in a mortgage rate retreat that lasted all day Friday. That momentum should carry forward into the early part of this week.

The second story is tied to safe-haven buying.

The U.S. mortgage market benefited from growing concerns within the Eurozone that Portugal could default on its debt. The story emerged three weeks ago when Portugal's debt was downgraded. It picked up steam last week after a weak debt offering. It's a similar beginning to what transpired in Greece last spring.

Mindful of their respective risk, worldwide investors chose to shift risk toward safer asset classes which includes, of course, mortgage-backed bonds. This week, those risks will remain and the flight to quality assets should continue. Mortgage rates will benefit.

Given the likelihood that mortgage rates will fall this week, it may be tempting to let your mortgage rate float. That strategy could prove foolish.

Mortgage rates fell to historic lows in 2010 and sprung higher at the first possible opportunity. Rates remain at ultra-low levels and have lots of room to rise. Give me a call to discuss the opportunity that is right for you.

Labels: best realtors in town, future mortgage rates

December's Job Report : Good For Home Affordability
On the first Friday of each month, the Bureau of Labor Statistics releases its Non-Farm Payrolls report. More commonly called "the jobs report", the government's data include raw employment figures and the Unemployment Rate.

For this month, and for the rest of 2011, employment data will figure big in mortgage markets.

7 million jobs were lost in 2008 and 2009. Fewer than one million jobs were recovered in 2010. For the economy to fully recover, analysts believe that jobs growth is paramount.

Consider how job creation influences the economy:
1. More jobs means more income and more spending
2. More spending means more business growth
3. More business growth means more job creation
It's a self-reinforcing cycle and, as business grows, the economy expands, pushing stock markets higher. This tends to lead mortgage rates higher, too, because bonds can lose their appeal when stock markets gain.

According to the government, 103,000 jobs were created in December, and October's and November's figures were revised higher by a net 50,000 jobs for a total of 153,000 new jobs created. Economists expected a net gain of 135,000.

The Unemployment rate fell to 9.4, its lowest level since mid-2009. The December jobs report was "average", and home affordability is improving.

Labels: best realtors in town, current jobs report, forsyth county homes for sale

Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.750% Purchase Only
15-yr Fixed = 4.125% Purchase Only

NEW!
Conforming 5/1 = 3.50% amortized; 3.75% interest only
Conforming 7/1 = 3.875% amortized
(Consult your Covenant Mortgage Professional for Refinance Quotes)

Jumbo Loans:Loan amounts over $417,000*
5/1 ARM = 4.25%
7/1 ARM = 4.50%
NEW! 30-year Fixed JUMBO = 5.625%
FHA Loans: *
30-yr Fixed Range = 4.50% - 5.00%
NEW! FHA 5/1 ARM = 3.50% Qualify at Start Rate

Call Our Preferred Lender Now For More Details!

Phil Blankstein
Mortgage Planner
Cell 678-938-7111
phil.blankstein@mycovenantmortgage.com
NMLS # 251790, GA License# 26422

*Based on pricing as of Friday, January 7th, 2010 at 12:00PM.
Prices, guidelines, and programs subject to change without notice. Subject to errors and omissions.
This information is not intended to constitute an advertisement for purposes of the Truth-in-Lending Act or Regulation "Z". It is intended solely for use by Real Estate professionals.
Residential Mortgage Licensee: GA Licensee # 22745, Florida Licensee # CL0800186,
North Carolina Licensee # B-147025, Covenant NMLS # 144774

Labels: best lender in town, best realtors in town, low mortgage rates

New Hope In Africa will host its Board of Directors meeting in late February. The meeting will be held in the Atlanta area and attended by all board members. The meeting was scheduled at this time to allow the Director of our Africa Operations, Dr. Zefanias Chihulume of Mozambique, to attend.

Zef will be visiting us from February 19th thru March 18th. During his visit we will be visiting many churches and organizations making presentations of our programs for Africa. We are focusing our initial efforts in Mozambique where we will be drilling wells and planting new churches.

If you would like us to visit your church or group during this time, please contact me (Mike Vanderhoff) at 770-888-9269 or by email at mike@newhopeinafrica.org

Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.75% Purchase Only
15-yr Fixed = 4.25% Purchase Only

NEW!
Conforming 5/1 = 3.50% amortized; 3.75% interest only
Conforming 7/1 = 3.875% amortized
(Consult your Covenant Mortgage Professional for Refinance Quotes)

Jumbo Loans:Loan amounts over $417,000*
5/1 ARM = 4.25%
7/1 ARM = 4.50%
NEW! 30-year Fixed JUMBO = 5.625%
FHA Loans: *
30-yr Fixed Range = 4.75% - 5.00%
NEW! FHA 5/1 ARM = 3.25% Qualify at Start Rate

Call Me Now For More Details!
*Based on pricing as of Friday, December 31st, 2010 at 12:00PM.
Prices, guidelines, and programs subject to change without notice. Subject to errors and omissions.
This information is not intended to constitute an advertisement for purposes of the Truth-in-Lending Act or Regulation "Z". It is intended solely for use by Real Estate professionals.
Residential Mortgage Licensee: GA Licensee # 22745, Florida Licensee # CL0800186,
North Carolina Licensee # B-147025, Covenant NMLS # 144774


For More Information Call or Email Mike and Melody's preferred lender
Phil Blankstein
Mortgage Planner
Cell 678-938-7111
phil.blankstein@mycovenantmortgage.com
NMLS # 251790, GA License# 26422

Labels: best lender in town, best realtors in town, current mortgage rates

With 2010 at a close, the "experts" are out in full force, making predictions for next year's housing and mortgage markets on business television and in the papers.

Predictions for 2011 are wide-ranging:
Some say home prices will rise in 2011 (Housing Wire)
Some say home prices will fall in 2011 (Bloomberg)
Some say mortgage rates will rise in 2011 (New York Times)
Some say mortgage rates will fall in 2011 (The Atlantic)


The problem with housing and mortgage predictions is that - like all predictions - they're just educated guesses about the future. Nobody knows what will really happen with the housing and mortgage markets in 2011. All anyone can do is theorize. As laypersons, though, it can be hard to separate theory from fact.

Television can make that task even more difficult at times. As an example, when a well-dressed economist goes on CNBC and presents a clear, succinct argument for why home prices will fall on 2011, we're inclined to believe the analysis and conclusion. After all, the outcome seems plausible outcome given the facts. But then, immediately after, a different economist presents an opposite argument - that home prices will rise in 2011 - and her analysis seems sound, too.

Even Freddie Mac can't see the future. Last year, the government group predicted mortgage rates to 6 percent in 2010. That never happened, of course. Instead, conforming mortgage rates dropped over a 7-month period this year to levels best be described as "historic". Freddie Mac couldn't have been more wrong.

So, what's a homeowner to believe?

About the only thing that's certain right now is that mortgage rates remain low by historical standards and home prices do too. Also, both housing and mortgage markets appear to be riding momentum higher into 2011. This suggests that it will be more expensive to buy and finance a home by the end of 2011. Until that time, however, predictions are just guesses.

Labels: future home prices, future mortgage rates

Mortgage markets improved last week during a snow- and holiday-thinned series of sessions on Wall Street. Mortgage bonds improved on year-end profit-taking, mostly, leading conforming mortgage rates lower.

Last week marked the first calendar week in which mortgage rates dropped since early-November, a pleasing development for rate shoppers and home buyers. Falling rates means lower monthly mortgage payments.

But don't expect for rates to improve again this week, however. Last week's gains were the result of extremely low trading volume and a close-out of 2010 mortgage bond positions. With markets re-opened for 2011, and Wall Street back at full volume, mortgage rates may resume rising.

There will be a lot of data and information on which for mortgage bonds to trade, too.

The week starts with a growth report from the U.S. manufacturing sector. The Institute for Supply Management's monthly report has shown improvement over 16 straight months, and Monday's report is expected to show the same. Because manufacturing is key in U.S. economy, a stronger-than-expected value could send stock markets higher, and mortgage rates, too.

Then, Tuesday, the Federal Reserve releases the minutes from its December meeting. There won't be policy changes transcribed in the minutes, but Wall Street will scrutinize its pages for clues on the economy. A bullish bias from the Fed will push rates higher. A bearish bias will drag rates lower.
And lastly, Friday, the government will release its Non-Farm Payrolls report for December. This is a major market-mover because of how closely jobs are tied to the economy overall. Plus, Fed Chairman Ben Bernanke speaks Friday - another risk to mortgage rates.

The gravity of this week's economic releases and speeches should make shopping for a mortgage difficult. Stay in close touch with us about mortgage rates and how they're moving. There's no promise rates will ever go lower.

Labels: alpharetta homes for sale, cumming homes for sale, milton homes for sale, mortgage rates