Real Estate is in High Demand

Real estate is the overwhelming preferred choice by Americans as identified in a recent survey. With the Dow Jones industrial average reaching record highs, it might be expected that the stock market would be the favored choice but that wasn’t the outcome.
Analysis of the report suggests that the popularity for houses could be that they are tangible assets that you can see where your money is actually invested compared to stocks and bonds which tend to be unclear where the money is invested.
There are several distinct advantages of homes as investments over other popular alternatives.

1. High loan-to-value mortgages available
2. At fixed interest rates
3. For long periods of time
4. On appreciating assets
5. With definite tax advantages
6. And reasonable control.

Another advantage of rental homes is that most people are comfortable with them. It is the same type of property that they live in but used as a rental. They have a tendency to understand the key components such as value, appreciation, rent, maintenance and financing.

Buy Down?

There is an infrequently-used mortgage program available that could be the solution to a buyer's or seller's problem.
A temporary buydown is fixed rate mortgage that the seller has prepaid interest at closing to lower the payments for a number of years.  The borrower must qualify at the note rate but gets the benefit of lower payments for the early years.
A 2/1 is a common buydown that the first year's payment is calculated at 2% lower than the note rate and the second year's payment is calculated at 1% lower than the note rate.  The third through thirtieth years' payments are the note rate.
Let's set the scene.  A buyer is using their available cash for down payment and closing costs to get into the home.  They'd like to put their own touches on the home when they move in but may not be able to for a year or two since most of their cash was used.
In this example, a $250,000 home is purchased with a 3.5% down payment and a 4% mortgage for 30-years.  Normally, the principal and interest payment would be $1,151.76 for the full 30-year term.  If the seller will pay the lender $4,736 at closing, it can be applied to pre-pay part of the interest for the first two years.

The first year, the buyer's P&I payment will be $891.71 for 12 months based on a 2% interest rate or 2% lower than the 4% note rate.  It is $260.06 lower per month in the first year.  The second year, the buyer's P&I payment will be $1,017.12 for the next 12 months based on a 3% interest rate or 1% lower than the 4% note rate.  It is $134.64 lower per month in the second year.
A bonus for the buyer will be that the cost of the buydown paid at closing by the seller becomes prepaid interest that is deductible by the buyer in the year of purchase.  The buyer gets lower than normal payments for the first two years and a sizable tax deduction.
This type of program can be very beneficial to a seller who wants to offer terms to improve the marketability of their home rather than lower the price.  The challenge will be explaining it to not only potential buyers but even agents who are not familiar with this program.

Beautiful New Home in The Preserve just SOLD!

Happy 4th of July!

Our American flag is obviously the symbol of our country but it has come to remind us of every man and woman who has fought for the freedom that we enjoy. The emotions that are stirred by images of our flag can run from happiness to sadness to even anger and everything in between.
Most of us learned basic flag etiquette when we were young but occasionally, it is a good idea to review the procedures so that we treat the flag with the respect that it deserves.

• The U.S. flag should not be flown at night unless a light is shown on it.
• The flag should never touch the ground.
• The U.S. flag should not be flown upside down except as a distress signal.
• A U.S. flag should be displayed at the peak of the staff unless the flag is at half-staff.
• When displaying multiple flags of a state, community or society on the same flagpole, the U.S. flag must always be on top.
• When flown with flags of states, communities or societies on separate flag poles which are of the same height and in a straight line, the flag of the United States is always placed in the position of honor - to its own right. No flag should be higher or larger that the U.S. flag. The U.S. flag is always the first flag raised and the last to be lowered.
• When the U.S. flag is flown with those of other countries, each flag should be the same size and must be on separate poles of the same height. Ideally, the flags should be raised and lowered simultaneously.

Amazing Number In Our Real Estate Market!

http://blog.al.com/acre/2012/04/lee.html


I thought everyone would like to see the numbers in our real estate market!  Its looks like its going to be a good year.  Not only are sales up from last year it looks like they are way up!!!  Most Realtors you talk today will also tell you they feel the difference and I know I personally do!  Its an exciting time in our market and we have been blessed to have the industry and jobs continue to come our way!  Its a great article so take a little time and read what an amazing place we live!  Enjoy!

2169 Turnbury Lane, Shelton Cove, Auburn AL

This great new construction home located in the desirable Shelton Cove just minutes from Tiger Town and the mall is in the Auburn City limits!  Charming craftsman style home with lots of upgrades and open plan living including a cozy sunroom to enjoy.  This home offers 3 bedrooms and 2 bathrooms, vaulted ceilings, a kitchen island with granite, walk-in kitchen pantry, separate tiled shower and large soaking tub in the master bedroom.  This home is Energy Star Certified by a third party!    Call today for a showing!

Become your kid's mortgage lender

Become your kid's mortgage lender

This is an interesting article!!! Thought you guys would enjoy reading it!!! Hey it's better than the banks return in CDs, saving and money market accounts!!!

Homeowner Versus Renter Population

Homeowner Versus Renter Population

1925 Sequoia Drive

Located in the Preserve, this wonderful new Energy Star Certified home has so much to offer. With an inviting front porch great for enjoying nice quite evenings.  Entering this home a lovely dining room is located immediately on the right.  As you walk into the home you will find yourself in the open plan family/kitchen combination.  The family room is spacious with beautiful hardwood floors, a stone fireplace and an entire wall of large windows that allow natural light into this great space.  The kitchen boasts awesome maple cabinetry with a dark finish, granite countertops and an island.  There's even a large walk-in pantry.  Located conveniently just off the kitchen is a half bathroom.  Upstairs there's a loft area that would make a great kid's retreat/hangout.  You will also find a spacious master bedroom with a terrific trey ceiling and a large walk-in closet.  The master bathroom features a large soaking tub and separated tiled shower as well a generous size double vanity with granite and gorgeous brushed nickel fixtures. There are three other bedrooms located upstairs all with walk-in closets and a nice size full bathroom and a handy laundry room.  Enjoy the great backyard on the patio or any of the great amenities offered such as the clubhouse, pool, grilling area, walking trails and fishing pier.  The Preserve is located in the Auburn city limits and is just a few minutes from the new Publix Shopping Center.  There are numerous open house hours so send me an email or call to set up a showing!

http://tour.previsite.com/4E6072EB-639F-3245-4740-BB5AF4B5906C

A Short History of the Preserve.

Eastbrook started out in the Preserve Subdivision 4 years ago located on Farmville Road. They purchased some lots on Covey and started out with 2 homes.

They asked me when I first started why they couldn't sell more homes in the Preserves. They believed in the subdivision and really thought it was a "good piece of dirt". I explained that the subdivision started out rough. If a number of you recall the subdivision was 2 years behind. Then we had a crash in the economy with a slip in sales. The subdivision had a number of homes already in it but with a number of other subdivisions with more homes, amenities and stability, Eastbrook had a lot to prove.

They started talking with the owners of the development about adding the amenities with hesitation. 2 years ago the owners of the development decided to look at what Eastbrook wanted to propose and Eastbrook started designing plans for the clubhouse, pool and landscaping. In the meantime of doing all that they had a number of lots re platted and lost some lots by doing that. They knew it was something they had to do in order to put a product in the ground that buyers would buy. One reason why I have so much respect for the organization! They listen!

What a lot of people don't know is that even the current residents were worried about what kind of clubhouse Eastbrook was going to put in. Eastbrook understanding the importance of making the residents happy and the importance of future sales had a meeting with a number of residents in the Preserves. With the comments, suggestions and ideas they went back and implemented a number of those.

In October of 2010 after going through a dozen of designs they finished the clubhouse and pool. They had a grand opening not only to the pubic with a business after hours event that was promoted through the chambers they had a separate one for the residents to welcome them to their new amenities. The overall response was amazing.

The response Eastbrook received not only with the public but more importantly the residents that lived there showed they did the right thing. The clubhouse is one the few in the area that is fully furnished! With 2 large flat screen TVs hooked up to cable, fireplace, kitchenette, large kitchen island, sitting areas, tables and a full working showroom.

The outside area includes, very large covered patio with tables and chairs. The pool is a saltwater pool system with a large kids area that is only 6 inches deep. Other things they did were to add outside bathroom, changing room, grilling area, misters and a lot of you may not know, an area for a future gas fire pit!

Now this is only the clubhouse and pool area. Other investments they made was the amazing landscaping they did around the clubhouse, pool with large rock retain wall! The second entrance into the preserve has detailed out landscaping that make the Preserve look amazing! They also decided to connect the first entrance and second entrance residents by installing a covered bridge by the spill way. The bridge was custom designed with cut lumber at the mill store. They even put a sitting area underneath the bridge with lighting in case residents want to come out and sit and fish! They painted the gazebo on Clements pond in the green space area which looks great! And they put a dock out on the large lake the lot they reserved as a park for those that canoe or boat so they can pull up to!

Some other amenities include the walking trails we have in the back. Some of the residents GPS the trail and said there are over 5 miles. The thing to keep in mind is that its not nicely cut or pathed out. Its rough and natural which make it great of golf cart, four wheeling and jeeping!

The Preserve one of the few subdivision that offers a number of different sized lot too which is great for anyone that is looking to buy a home. Waterfront, estate size (more than an acre), cal-du-sac, half acre, basement lot, etc.

One thing that clients tell me over and over again is that Eastbrook offers the most options and selections for interior and exteriors. They allow a number of different granite, cabinets, flooring, carpet, stone, brick and interior door styles on in the base price. With an in-house archictect it allows the clients to make adjustments to walls, designs, bump out and exterior design as well.

The clubhouse showroom is a one stop shop to making all the selections you need which is one thing buyers like. They chose everything from the color of the siding, to the soffitt. Eastbrook has a good system on how to make selections so that it doesn't become a overwhelming task.

The Eastbrook philosophy is to build a house like they were building their own. Which makes for a great experience when building yours!

So come see me at the Preserve and see what all the hype is about! Homes are springing up everywhere and its only going to keep on moving!

Qualified Residential Mortgage (QRM) and Risk Retention: Background

The link shown above provided by the National Association of REALTORS provides information related to Qualified Residential Mortgage and Risk Retention: Background.

REALTOR® Magazine-Daily News-10 Reasons to Buy a Home

REALTOR® Magazine-Daily News-10 Reasons to Buy a Home

Existing-Home Sales Slow in June but Remain Above Year-Ago Levels

Washington, July 22, 2010

With the scheduled closing deadline for the home buyer tax credits, existing-home sales slowed in June but remained at relatively elevated levels, according to the National Association of Realtors®.

Existing-home sales1, which are completed transactions that include single-family, townhomes, condominiums and co-ops, fell 5.1 percent to a seasonally adjusted annual rate of 5.37 million units in June from 5.66 million in May, but are 9.8 percent higher than the 4.89 million-unit pace in June 2009.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.



“Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low 4.74 percent in June from 4.89 percent in May; the rate was 5.42 percent in June 2009.

The national median existing-home price2 for all housing types was $183,700 in June, which is 1.0 percent higher than a year ago. Distressed homes were at 32 percent of sales last month, compared with 31 percent in May; it was also 31 percent in June 2009.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said softer home sales expected this summer don’t tell the whole story. “Despite these market swings, total annual home sales are rising above 2009 and we’re looking for overall gains again this year as well as in 2011,” she said. “Conditions have become more balanced in much of the country, which is good for both buyers and sellers. However, consumers find it even more challenging to navigate the transaction process, especially for distressed properties, which only underscores the value Realtors® bring to buyers and sellers in this market.”

A parallel NAR practitioner survey3 shows first-time buyers purchased 43 percent of homes in June, down from 46 percent in May. Investors accounted for 13 percent of sales in June, little changed from 14 percent in May; the remaining purchases were by repeat buyers. All-cash sales were at 24 percent in June compared with 25 percent in May.

Total housing inventory at the end of June rose 2.5 percent to 3.99 million existing homes available for sale, which represents an 8.9-month supply4 at the current sales pace, up from an 8.3-month supply in May.

“The supply of homes on the market is higher than we’d like to see. But home prices are still holding their ground because prices had already overcorrected in many local markets,” Yun said. Raw unsold inventory remains 12.7 percent below the record of 4.58 million in July 2008.

Single-family home sales fell 5.6 percent to a seasonally adjusted annual rate of 4.70 million in June from a level of 4.98 million in May, but are 8.5 percent above the 4.33 million pace in June 2009. The median existing single-family home price was $184,200 in June, up 1.3 percent from a year ago.

Single-family median existing-home prices were higher in 10 out of 19 metropolitan statistical areas reported in June in comparison with June 2009. In addition, existing single-family home sales rose in 12 of the 19 areas from a year ago while two were unchanged.

Existing condominium and co-op sales slipped 1.5 percent to a seasonally adjusted annual rate of 670,000 in June from 680,000 in May, but are 20.5 percent higher than the 556,000-unit pace in June 2009. The median existing condo price5 was $180,100 in June, which is 1.4 percent below a year ago.

Regionally, existing-home sales in the Northeast rose 7.9 percent to an annual level of 960,000 in June and are 17.1 percent above June 2009. The median price in the Northeast was $244,300, down 1.2 percent from a year ago.

Existing-home sales in the Midwest dropped 7.5 percent in June to a pace of 1.23 million but are 11.8 percent higher than a year ago. The median price in the Midwest was $155,900, down 0.1 percent from June 2009.

In the South, existing-home sales fell 6.5 percent to an annual level of 2.01 million in June but are 11.0 percent above June 2009. The median price in the South was $163,600, unchanged from a year ago.

Existing-home sales in the West dropped 9.3 percent to an annual pace of 1.17 million in June but are 0.9 percent higher than a year ago. The median price in the West was $221,800, up 1.5 percent from June 2009.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.

Did You Know: Who is Buying Homes More Than $500,000

Did You Know: Who is Buying Homes More Than $500,000
August 14, 2009

By Jessica Lautz, Research Economist







Nineteen percent of people who bought homes that were more than $500,000 were first-time buyers.
One in five buyers of luxury homes (those priced more than $500,000).
In comparison, 43 percent of homes priced less than $500,000 were first-time home buyers.
The median age of buyers who purchased a home more than $500,000 was 42. This is just slightly older than the median age of those who purchased a home under $500,000—39.
The median gross household income, predictably, is substantially higher among luxury home buyers. Those who purchased homes more than $500,000 typically had a household income of $154,600.
Almost one-third of luxury home buyers had a household income above $200,000.
The median household income for those who purchased a home under $500,000 was $71,600.
For a complete 2009 NAR Member Profile - available free only for REALTOR® members this year - click here.


Who is buying homes more than $500,000?

Less than $500,000 More than $500,000
First-time buyer 43% 19%
Repeat buyer 57 81

Age:
18-24 6% 1%
25-44 56 54
45-64 30 38
65 or older 8 7


Median 39 42

Gross Household Income

Less than $54,999 24% 4%
$55,000 - $74,999 22 5
$75,000 - $99,999 21 9
$100,000 - $149,999 18 26
$150,000 - $199,999 5 22
$200,000 or more 3 31
Median $71,600 $154,600


This is one in a series of commentaries by the Research staff of the National Association of REALTORS®. Read more commentaries >

Comments? Questions? E-mail NAR Research.

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More Research Resources
Commercial Market Survey
Commercial Resource Guide
Local Market Information
Realtors®' Confidence Index
Median Prices Interactive Map
State Sales Interactive Map
Housing Data
Economic Indicators


Fast Facts
Nearly one-quarter of first-time buyers are single females who purchased their first home on a median income of $47,400.
Source: 2008 NAR Profile of Home Buyers and Sellers.