Archive for March, 2008
Ready to Write an Offer? Show Me the Money!
Categories: Chattanooga Real Estate News, First Time Buyers, For Home Buyers
By Kacey Sides, Buyer Specialist - Andy Hodes and The Scenic City Team
So you’re pre-approved and ready to find your dream home. When you find that perfect home, do you have the money it takes to write the offer? You’re pre approved though… that should be enough, right? Wrong! If you have found a Realtor to help guide you through the process, and you have already had your Buyer’s Consultation, this part won’t come as a suprise to you. If you haven’t, I’m here to let you know, it costs money to write an offer on a home!
The money needed upfront:
Earnest Money - This is the first portion of money you will need to provide when you sign on the dotted line. This shows the Seller you have valuable consideration in your future home. (Especially if you’re asking for closing costs and / or downpayment assistance!) The amount of money can vary, but you ultimately determine the amount. Typical amounts start at $500 and up and is held in an escrow account untill closing; it will go towards any residual money you owe at closing. If the offer doesn’t go through, this money will be given back to you, as long as you have not defaulted on your side of the contract. If not, it goes to the Seller. With a great Realtor to keep you on track, this is something you shouldn’t have to worry about!
The Inspection - Your inspection period is typically within 7 to 14 days from your accepted offer. This is the portion of the contract where you are able to do all of your inspections on the home. Here in Chattanooga, a home inspection can cost around $300 to $350 and up. It depends mostly on the type of inspections needed and/or desired by you. (Mold, Radon, Synthetic Stucco, etc.) It also depends on the size of the home as well.
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Don’t Ruin Your Credit with a Home Foreclosure; Try a Short Sale First!
Categories: Ask Andy, Chattanooga Real Estate News, For Home Sellers, Mortgage and Finance
By Andy Hodes, Realtor, Andy Hodes & The Scenic City Team
I ran into a friend a few days ago, let’s just call her Norma, who lost her great job several months earlier; her new job pays much less. Norma was struggling to barely pay all her bills, including a big mortgage. She asked if I could quickly sell her home so she could look for a place to live that would fit her new budget.
After a few questions I quickly determined that Norma couldn’t sell her home for a price high enough to pay off her mortgage. We call this being “upside down”- a bad place to be if you need to sell quickly. Norma said that if she couldn’t sell it, that she’d just walk way and let the bank foreclose. I suggested trying a “short sale” of her home instead, which could be a real win-win for her AND her lender. Norma wanted to know more.
In economic times when home prices keep going up, we don’t hear too much about short sales, but now that we’re in a buyer’s market with increasing inventory and declining home values, short sales become more prevalent. More and more people need to sell - and sell now - but they owe the bank more than their home is worth. There’s no need to walk away and have a foreclosure ruin your credit for years to come.
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7 Keys for a Successful OPEN HOUSE!
Categories: Chattanooga Real Estate News, For Home Sellers
By David Israel, Business Manager Andy Hodes & The Scenic City Team
I have written several articles for our blog and one of the most important items I have stressed in almost every Real Estate related article is you only get a 1st Impression one time. Please keep this in mind when you are preparing your home for an Open House. There are several websites that can assist you further.
1. Pay attention to the Outdoors - From the time a buyer walks in to the time they leave, they will be coming and going 
through your entire house. Make sure that all items are put away or in their proper place. Clean off the doormat or purchase a new one. Don’t leave anything at the front door that would distract a potential buyer.
2. Clean your home - Whether you do it professionally or personally. Go through the entire house and thoroughly clean the house from top to bottom. Dust the entire house, sweep and mop the floors. You want your home to sparkle like a diamond. Clean off the counters, but don’t shove things in cabinets, buyer will open cabinets and closet doors. Buyers don’t just look around, they feel around they want to know how a door opens and closes. It is their first “Test Drive” of the home.
3. Bake Cookies - Sometimes if you bake chocolate chip cookies in the morning, the house will have that incredible aroma throughout the house. Baking shows that the home is being used and the smell will tell their senses to keep looking. In the kitchen, place the cookies on a nice plate for visitors to enjoy.
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The Buyer’s Consultation - What’s the Point?
Categories: Chattanooga Real Estate News, First Time Buyers, For Home Buyers
By Kacey Sides, Buyer Specialist Andy Hodes & The Scenic City Team
Whether you are needing to buy a home in the next week or next 6 months, a Buyer’s Consultation should be one of the first steps you and your Realtor take. The Buyer’s Consultation or “Needs” Consultation, (as some may call it), can determine alot of key points for you and your Realtor in about an hour, but save many weeks of frustration!
A Buyer’s Consultation not only reviews the entire home buying process, it helps get you and your Realtor on the same page. It sets the expectation of what’s important to you not only in your home, but through the entire transaction and communication process.
What a Buyer Consultation covers:
1. The steps before you write an offer - From loan pre-approval to setting up a customized email search. Your Realtor should review what it takes to find your dream home, and what you need to do to be ready when it’s time to write the
offer.
2. The Offer - Your Realtor will discuss the money you will need up front, and the steps involved from acceptance to closing, and everything in between.
3. Your Dream Home - The Best Part! You will let your Realtor know what your needs and wants are in your new home. Be ready to discuss all of the things that are important to you to have in your home, and the things that would be icing on the cake. This allows your Realtor to see your new home through your eyes, so they can always be looking, even when you are not with them!
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Chattanooga - Fun for Tourists and Locals Alike!
Categories: Chattanooga Real Estate News, Flavors of Chattanooga, Things to Do in Chattanooga
By David Israel, Business Manager - Andy Hodes & The Scenic City Team
As Spring Break comes closer and school is out for the kids, have you planned your time wisely and economically? There are several things to do in the Chattanooga area with your kids, rather than taking a vacation out of town. It is more economical and the whole family might learn something new about your own hometown.
“Below you will find 6 great things to do that can fill an entire w
eekend on less than 1/3 of a tank of gas.”
With gas averaging almost $3.18 per gallon, why drive out-of-town, there are great local places and attractions. These are only suggestions, use your imagination to discover more of Chattanooga.
1. Go to a local restaurant that you have not been to before. There are so many choices here in Chattanooga from your local BBQ joint like Sticky Fingers to 212 Market Street, which by the way I have eaten at 3 times this week during several committee meetings.
2. Go see a local attraction, park your car in St. Elmo and take a ride up Lookout Mountain on the Incline Railway. See the view from the top of the mountain. Walk over to Point Park, one of the great U.S. National Parks. Take a stroll with the family and enjoy the rich history that surrounds the Chattanooga area. Walk back and take the Incline back down. If you have never done it, you will love it. If you have, I am sure it has been a while and you will get a kick out of the experience.
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Getting a home loan? Key Questions to Ask Your Lender.
Categories: Chattanooga Real Estate News, For Home Buyers, Mortgage and Finance
By Kacey Sides, Realtor, Buyer Specialist with Andy Hodes & The Scenic City Team
Need a home loan? Not long ago, that was the easy part of the home buying process. It seemed if you had a pulse, you were approved for a home loan . . . Not anymore! After the recent surge of foreclosures, alot has recently changed in the morgtage industry. Thus making who you choose as your lender that much more important!
A lender, educated in their constantly-changing industry, will keep more money in your pocket. There are still tons of great programs available for people with qualifying jobs and/or income. A lender that is aware of all the various programs for which you qualify can potentially save you thousands of dollars at closing and over the term of the loan! Ask your Realtor for a list of the most-qualified lenders in your area.
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Our Local Real Estate Market: The Good, The Bad and the Ugly!
Categories: Chattanooga Market Conditions, Chattanooga Market Statistics, Chattanooga Real Estate News
By Andy Hodes, Realtor, Andy Hodes & The Scenic City Team
Recent statistics from the Chattanooga Multiple Listing Service (MLS) continues to show weaker sales and median home values clearly pointing to the fact that we continue to operate in a “buyer’s market” where pricing and terms are much more favorable to buyers than sellers. A buyer’s market is typically defined as having more than seven months of inventory available.
In February 468 housing units closed, a 15.2% decline from the 552 units that closed in February 2007. In the last six months (September 2007 thru February 2008) we averaged 481 closed units a month, a 21% decline from the average of 609 monthly closed units for all of 2007. It was reported that from January 2007 the median home price (the amount at which half the homes sold for more and half sold for less) slipped from $135,700 to $127,000 at the end of January 2008, a 6.4% decrease. These statistics were reported by the Chattanooga MLS.
In Chattanooga affordability is key with our median price of $127,000 being significantly less than the national median home price of $201,100, as reported by the National Association of Realtors.
Even though our median values slipped during 2007, my primary concern is the imbalance of supply and demand. At the end of February the MLS showed 5,593 active listings on the MLS. Using 481 as the average number of closed transactions for the last six months, that’s 11.6 months of housing inventory if no new homes were listed for sale. In February 2008, the MLS reported that over 1,100 homes were newly listed for sale. This imbalance will not correct in the near future even if buyer transactions return to 2006 and early 2007 levels.
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