Important News and Techniques for Today's Real Estate Market

On June 25th, New-HUD, Inc, Keller Williams Atlanta Partners, and Pace &

Jackie Campbell at Keller Williams Atlanta Partners EITHER

? Via Email at PropertyDonation@BestGeorgiaHomeSearch.com or

Real Estate Agents with CDPE Designation Help 8 Times as Many Homeowners Avoid Foreclosure Than Average Agent

New survey results reveal Certified Distressed Property Experts (CDPEs) are helping more homeowners avoid foreclosure than average agents

Based on recent survey responses, CDPEs are leading the way among real estate agents out of the foreclosure crisis.

The annual survey conducted by the Charfen Institute, the company that provides the CDPE course and designation, that CDPEs have positioned themselves as the go to experts for people in danger of losing their home to foreclosure. “The study revealed that CDPE agents do 14.7 transactions on average per year that involve distressed properties,”.  “This is more than 8 times the number averaged by real estate agents as a whole according to a recent survey conducted by the National Association of Realtors.”

The results also revealed that CDPEs close more than twice as many overall transactions as the average agent. Currently, Jackie is closing about 10 times the number of overall transactions that the average agent closes.

CDPEs are professionals with specialized training in helping homeowners avoid foreclosure via short sales. In a short sale transaction, the lien holder accepts less than what is owed on the mortgage. This option is usually less harmful to a homeowner’s credit score, typically does not challenge employment or security clearance, and allows the seller to be eligible for government-backed loans sooner than a foreclosure.

“There are more than 43,000 CDPEs nationwide, helping troubled homeowners in their local markets and helping the housing market as a whole get back on track”. “I became a CDPE because I wanted to be a part of the solution and help the people in my community. Successful short sales require a certain level of expertise and knowledge.”

“Even though the market has slowly begun recovery, there are still many underwater homeowners who don’t know what to do,” said Alex Charfen, CEO of the Charfen Institute and author of the CDPE Designation. “It’s important for them to know they have options outside of foreclosure and that there are specially trained people who want to help.”

For more information about the CDPE designation, visit www.CDPE.com.

Sales of luxury homes spiked in the final months of 2012 as high-end homeowners rushed to take advantage of lower tax rates before January 1.

ACCORDING TO CNN MONEY (WWW.MONEY.CNN.COM) Many sellers wanted to cash in on their homes before a widely expected capital gains hike -- to 20% from 15% -- that was part of the fiscal cliff budget deal. High-income earners (singles with income of $200,000 or more and couples making more than $250,000) also wanted to close sales ahead of a 3.8% Medicare surtax on investment income that was already slated to go into effect this year as part of the Affordable Care Act.

All told, a high-earner would pay $88,000 less in taxes if they made a $1 million profit on their home in 2012 rather than in 2013.

That considerable tax savings motivated many wealthy homeowners to move fast. According to the National Association of Realtors (NAR), sales of homes valued at $1 million or more spiked 51% in November compared with a year earlier.

In Manhattan, one of the most expensive markets in the nation, the number of sales of home valued at more than $10 million jumped 44% year-over-year during the last three months of 2012, according to broker Brown Harris Stevens.

"Ever since last summer when people realized that the fiscal cliff was approaching, there was an incentive to get deals done," said Meredyth Smith, an agent for Sotheby's International Real Estate.

Related: Fiscal cliff deal raises taxes on 77% of Americans

Several of her clients hurried to close by the end of December. When one prospective buyer couldn't move that quickly, the seller called off the deal entirely, she said. He may reprice it entirely before putting it back on the market this year, she said.

Some sellers lowered prices for buyers who promised to close before January 1. John Parsegian, an agent with Halstead Property, helped broker a $14 million condo sale in midtown Manhattan that closed in late December. The seller had structured the deal so that the home would cost $175,000 less if it finalized before January. He also threw in some furniture.

Other sellers prevailed on co-op boards to speed up their approval processes, according to Sotheby's CEO, Philip White. Managing agents representing co-ops and condos, had trouble handling all of the paperwork for all the sellers who were anxious to close.

For the first time in 26 years, Jonathan Miller, president of New York appraisal firm Miller Samuel, had to turn away business. "I call it 'bedlam in appraiserville,'" he said. "It was clearly skewed toward high-end properties."

Related: Family tax breaks protected

Looking ahead, all those rushed deals could mean a slight slump in high-end sales early in 2013, said White. Not only will buyers be in shorter supply but the inventory of luxury homes has dropped precipitously.

But White thinks the drop-off will be short-lived. Historically low interest rates should continue making the long-term cost of buying these homes attractive to buyers. In addition, foreign buyers continue to invest in U.S. properties and many domestic buyers are starting to come off the sidelines now that home prices are starting to recover. 

Congratulations once again to Peachtree City!  This time, they've been named by Bloomberg Businessweek as "The Best Place to Raise Kids in Georgia". 

Of course, we don't need a magazine to tell us what we already know-- Peachtree City is a great place to live!--but it sure is nice to hear it, anyway. 

Read the whole story here at http://images.businessweek.com/slideshows/2012-12-17/the-best-places-to-raise-kids-2013%23slide11#slide11

I recently had an opportunity to talk with Deborah Simmons at Wells Fargo Home Mortgage, one of the top loan officers in the business.  She gave a formula that I think is very interesting, since it demonstrates the power that the HISTORIC LOWS we are seeing on interest rates gives to the buyers out there...

“In simple terms, every 1% increase in home loan rates decreases the buying power of an individual by 10% in home price. This means that if you qualify for a home priced at $200,000 today and interest rates increase 1%, the amount you could qualify for would be reduced to approximately $180,000 to maintain the same payment. That’s why it’s so important to take advantage of today’s opportunities before there’s even a slight change higher in rates.”

This works both ways, Guys!  A drop in interest rates by 1% means that your purchase power is now increased to $200,000 from $180,000!  While I'm not a fan of spending more than you have to spend to find your dream home, you have to admit that having more wiggle room in your price target certainly opens up more OPTIONS. 

Deborah can be reached at 770-486-2622.

Georgia Property Disclosure Rules:  What Do You Say When You See Dead People?

So, with Halloween upon us, it seems like an appropriate time to discuss the issues surrounding the sale of homes that have been rumored to be…. well, umm….haunted.

Stranger Things Have Happened

There is an agent in my office who tells the story of a couple whom he met early in his real estate career. This couple was adamant that they would ONLY consider houses that were haunted, and so (naturally) he focused on showing them older homes with the hope that eventually, they’d find one with a ghost. The couple did eventually purchase a house that they were convinced was haunted, but the determination of whether it was haunted was something that their agent was unable to make on their behalf. It came down to a feeling that the buyers had when they were in the house, and so it was not based on anything the agent said or did. (Thankfully.)

But That Creeps Me Out

It’s probably safe to assume that most people do NOT want to live with an uninvited, un-paying tenant—regardless of whether the tenant is from this world or another. The question is this: do you have to say something to a potential buyer if there is a rumor that dearly departed Aunt Maybell still lives in the attic?

Basically, it comes down to an issue of DISCLOSURE (as usual)…

From the Georgia Real Estate Commission…”Licensees must affirmatively disclose material defects in the physical condition of the property. However, they are not required to disclose whether a homicide or other felony or a suicide occurred on a property unless a prospect asks them. The key distinction is that felonies, suicides, and infectious diseases generally do not involve the physical condition of the property. Their impact on the property is psychological...... However, the Attorney General's office indicated that when a client or customer questions a licensee as to whether a property "was the site of a homicide or other felony or the site of a suicide," the licensee should "answer truthfully to the best of such [licensee's] knowledge. ”

Disclosure? That is easy, if the issue is physical. The roof leaked? The water heater doesn’t always work? Easy. Disclose it! We think we see dead people? Another thing altogether. So you can see that the rule in Georgia is that hauntings do not have to be disclosed (really, how would an agent truly know?), but—if asked about whether the property was the site of a homicide or other felony or the site of a suicide—an agent should do their best to give a correct answer.

So Where Does That Leave Me?

Well, now! I’ve been in plenty of creepy houses over the years, but I can’t say that I’ve ever had a client ask me specifically whether the property was haunted or whether there was a homicide, felony, etc. I did have a guy ask whether someone had died in the house---it turns out the answer was, “yes”. (He didn’t make an offer on that one.)

So, what would I tell a SELLER facing the issue of what to say about the strange goings on (paranormally speaking, of course) at their property? Disclose it IF you are convinced that your property is haunted. If there’s ever any doubt, you’ve covered your liability.

What would I tell a BUYER, concerned about whether the house comes with a free ghost? Ask! Be specific. And ask whether there has been a violent crime or suicide in the house, since that’s the only tangible thing (let’s hope, anyway) that an agent would be able to research on your behalf.

AND OF COURSE, IF YOU HAVE ANY DOUBTS about how to interpret disclosure laws in the State of Georgia, seek the advice of a licensed attorney.

HAPPY HALLOWEEN!

Jackie Campbell

The Campbell Team at Keller Williams Atlanta Realty Partners

FOR THOSE OF YOU WHO WANT THE OFFICIAL GEORGIA CODE:

The Official Code of Georgia Annotated Section 44-1-16 addresses this issue directly:

(a)(1) No cause of action shall arise against an owner of real property, a real estate broker, or any affiliated licensee of the broker for the failure to disclose in any real estate transaction the fact or suspicion that such property:

(A) Is or was occupied by a person who was infected with a virus or any other disease which has been determined by medical evidence as being highly unlikely to be transmitted through the occupancy of a dwelling place presently or previously occupied by such an infected person; or
(B) Was the site of a homicide or other felony or a suicide or a death by accidental or natural causes;
provided, however, an owner, real estate broker, or affiliated licensee of the broker shall, except as provided in paragraph (2) of this subsection, answer truthfully to the best of that person´s individual knowledge any question concerning the provisions of subparagraph (A) or (B) of this paragraph.
(2) An owner, real estate broker, or affiliated licensee of the broker shall not be required to answer any question if answering such question or providing such information is prohibited by or constitutes a violation of any federal or state law or rule or regulation, expressly including without limitation the federal Fair Housing Act as now or hereafter amended or the state´s fair housing law as set forth in Code Sections 8-3-200 through 8-3-223.
(b) No cause of action shall arise against an owner of real property, real estate broker, or affiliated licensee of the broker for the failure to disclose in any real estate transaction any information or fact which is provided or maintained or is required to be provided or maintained in accordance with Code Section 42-9-44.1. No cause of action shall arise against any real estate broker or affiliated licensee of the broker for revealing information in accordance with this Code section. Violations of this Code section shall not create liability under this Code section against any party absent a finding of fraud on the part of such party.

WHY DOES THE PAPER SAY FORECLOSURES ARE HIGHER AND OFFICIAL REAL ESTATE DATA SAYS FORECLOSURES ARE DOWN?

The foreclosure process in Georgia requires that the lienholder advertise, via legal notice in a local news publication, that a foreclosure is pending on a property.  This notice must be given for four weeks prior to the actual foreclosure, which takes place on the courthouse steps on the first Tuesday of the month. 

SOME FORECLOSE BUT DON'T COME TO MARKET IN A TIMELY WAY

Some of these properties may foreclose but are not released into the general population's inventory until much later.  The properties may be sold as part of block investor sales or just passing general states of safety and security before they can be sold.  We typically hold between 19 - 25 listings in "assigned but pending" status for Chase, Bank of America, The US Government - Dept of Veterans Affairs, Old Republic, etc. 

SOME NEVER FORECLOSE

There are also many situations in which the foreclosure process is stalled or stopped altogether during this minimum 4 week process (usually longer depending on where that first Tuesday fell in the month).  For instance, a few examples of a stalled or stopped foreclosure would be:  the owners "cured the default" by getting caught up on the delinquent payments.  Perhaps the owners received a contract to sell their home and an official forebearance was issued by the bank to delay the foreclosure.  A loan modification may have been made that allowed the sellers to better afford their payments.

The point is that not every property that is advertised in the legal notice section as a foreclosure actually follows the foreclosure process all the way to an end-result of foreclosure. 

Top 3 Things Sellers Should Know About Short Sales 

Do you owe more on your mortgage than you can sell your property for in today's market?   A short sale may be an option, but you will need your Lender's approval.  And you should know that your lender will not necessarily "forgive" the debt--you should pay close attention to what you sign so that you understand whether your lender is writing down the debt as a concession to avoid foreclosure, or if they're writing it down as a stop-gap until they come back to you for the amount they "forgive".

1. You have to prove hardship.

2. Your credit will be negatively affected (although not as much as a foreclosure).

3. You may owe taxes on the debt.