Catching Up

The real estate market is definitely picking up as we near summer. As a result my blog seems to have been neglected. In addition to giving my current clients the best service possible I have been working on several new projects to better serve my future clients.

I'm in the final stages of completing a new secure web based control panel so that my buyers and sellers can instantly view information on their transaction. For buyers they will be able to view listing information, tax records, and photos of properties that they have viewed along with a direct link to securely view any documents related to their purchase. For sellers they be able to view stats and feedback from agent showings of their home, stats on how often their listing is been view on various sites such as realtor.com and remax.com, stats for number sign calls and flyers taken, and up to date information on new and sold listings in their area. Providing my clients with the best possible information and advise is always top priority.

I have also recently purchased several additional domain names that I will be using to create niche websites to better serve the areas that I work in. These sites will be a huge asset to my sellers by placing their listing in front of more buyers searching in their specific area. A key requirement of this is to have the best relevant content available so that buyers and current residents will repeatedly visit these site. Doing this will take time.

The first change will be to transition aarontulin.com to move-atlanta.com. Though I find my name pretty easy to both remember and spell I'm sure that plenty of others do not.

Then, all of my current market data tools and a few new ones I've been working on will be moved to atlantamarketdata.com.

Finally, I will launch yourgwinnetthome.com to better serve my main market of Gwinnett county. Spin offs from this site will include newhomesingwinnett.com, gwinnettinvestmenthomes.com, and gwinnettgolfhomes.com. gwinnettgolfhomes.com will include sub sites hmillhomes.com (Hamilton Mill), loveapalacheefarms.com (Trophy Club At Apalachee Farms), and sugarloafcountryclubhomes.com.

It sounds like a real mess and the trick will be to get them to all work together but I think in the end it will provide more search engine traffic and provide visitors with the relevant information they are looking for leading to my listings being viewed by more potential buyers.

Dunwoody May Become a City

On Feb. 12 the Georgia Senate voted to allow the residents of Dunwoody to decide whether to incorporate the 40,000 residents of Dekalb County into their own city. Approval from the House and the Governor will be required before the voters will be able to make it official.

Gwinnett Homestead Exemption - Extension

The deadline to file for a homestead exemption for 2007 has been extended to March 1,2007. You must have owned and occupied the property by Jan 1,2007. Visit www.gwinnett-tax.com for more info.

Looking Forward to Providing My Clients With New Tools in 2007

Well if you believe everything you hear on TV, the housing market has either bottomed or is believed to be very close. I have a very hard to just believing that what we hear about the housing market in general translates to our Atlanta Metro market. From my desire to know what is actually happening here I decided to formulate my own data to provide my clients with a much more informed view of the market in their area and even price range. When completed you will be able to view days on market and pricing trends within 6 different price ranges and 34 areas within Gwinnett, Forsyth, Fulton, Cobb, and Dekalb counties. I am nearing completion of the programming and hope to have this avaliable to you by Jan 10th.

I have also created the only days on market estimator for residential real estate in Atlanta. By entering a MLS number from FMLS or GAMLS this tool will estimate the date that this property was listed and calculate the number of days it has been on the market. Having this information puts my clients in a much more informed negotiating position.

I know that you will find this information helpful and I look forward to working with you in 2007.

Reasons You Need a REALTOR®

1. A real estate transaction is complicated. In most cases, buying or selling a home requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page government-mandated settlement statements. A knowledgeable guide through this complexity can help you avoid delays or costly mistakes.

2. Selling or buying a home is time consuming. Even in a strong market, homes in our area stay on the market for an average of 71days. And it usually takes another 60 days or so for the transaction to close after an offer is accepted.

3. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with someone who speaks that language.

4. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. That’s why having an expert on your side is critical.

5. REALTORS® provide objectivity. Since a home often symbolizes family, rest, and security, not just four walls and roof, homeselling or buying is often a very emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you keep focused on both the business and emotional issues most important to you.

6. REALTORS® are members of the NATIONAL ASSOCIATION OF REALTORS®, a trade organization of more than 1 million members nationwide. REALTORS® subscribe to a stringent code of ethics that helps guarantee the highest level of service and integrity.


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

2007 PMI Tax Deduction

Today the multi-faceted tax bill (H.R. 6111) that includes, among a host of other provisions, a very narrow new income tax deduction for some mortgage insurance (MI) premiums. It is not known when or if the IRS will provide additional guidance for this provision, as it will be in effect for only one year and will be available only to a limited number of homebuyers.

These are the key features of the provision:

• The deduction applies only to MI policies issued in 2007 for homes purchased in 2007.
• The deduction does not apply to premium payments for policies issued before 2007.
  
• The deduction applies to private MI, and to FHA, VA and Rural Housing premiums, as well. The MI premium amount will be treated as mortgage interest.
  
• The new deduction is available only to individuals or families with less than $100,000 adjusted gross income (AGI) on a joint or single tax return ($50,000 for married filing separately returns).
  
• The provision phases out by 10% for each $1000 of AGI over $100,000 ($50,000 for married filing separate). Thus, there is no MI deduction for individuals or families with AGI above $110,000 ($55,000 for married filing separately).
  
• Individuals who claim the deduction are not permitted to prepay premiums that are otherwise due after 2007. The provision expires for any premium payment that is paid or that accrues after December 31, 2007.
  
• If a mortgage (other than a VA, FHA or RHA mortgage) is prepaid during 2007, the unamortized premium balance on that mortgage is not deductible. (The unamortized premium balance is the amount of premium that would have been paid in a particular year if the payments had extended throughout that year.)
  
• The homeowner will receive a statement from either the lender or the MI provider stating the proper amount of the MI deduction. That information will also be provided to the IRS.
  
• The MI deduction will not be available if an existing mortgage is refinanced in 2007 for an amount larger than the amount being refinanced.

Gwinnett County Sugarloaf Extension Project - Google Earth Overlay Map

Many Gwinnett county residents are already aware of the proposed Sugarloaf Parkway extension, but even if you have attended the meetings or looked at the plans online it is difficult to visualize exactly how the Lawrenceville area will be effected. To help do this I created an overlay map in Google Earth using stitched together blueprints from the Gwinnett county website. You must have Google Earth to view this map. It can be downloaded for free here. To download the overlay map click here (1.3mb).

The proposed project will create a 4 lane road from the current intersection of Sugarloaf Pky and Grayson Hwy to Hwy 316 between Winder Hwy and Harbins Rd. This new section of Sugarloaf Pky will be accessible from intersections at SR-20, New Hope Rd, Martins Chapel Rd, Campbell Rd, and a half-cloverleaf interchange at SR-316.

The Pros and Cons of Condos

• Condominiums and townhouses offer an affordable option to single-family homes in most areas. But consider these facts before you buy.
  
• Storage. Some condos have storage lockers, but usually there are no attics or basements to store belongings.
  
• Outdoor space. Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit. However, if you hate yard work, this may be the perfect option for you.
  
• Amenities. Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home.
  
• Maintenance. Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in workers when you’re not home.
  
• Security. Many condos have keyed entries and or even door attendants. Plus, you’ll be closer to other people in case of an emergency.
  
• Reserve funds and association fees. Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.
  
• Resale. The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar. Single-family homes usually are more individual.
  
• Freedom. Although you have a vote, the rules of the condo association can affect your ability to use your property. For example, some condos prohibit home-based businesses. Others prohibit pets. Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.
  
• Proximity. You’re much closer to your neighbors in a condo or townhome. If possible, try to meet your closest prospective neighbors before making a decision.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Housing Market Status - Toll Brothers CEO

Today on CNBC the CEO of national home builder Toll Brothers reported that some markets "seem to be dancing on the bottom to slightly above". While his comments were directed at national trends he also pointed to the current combination of lower interest rates, a strong stock market, and low unemployment typically pull housing out of a slowdown.

While the Atlanta market has not suffered from the drop in home prices that have been experienced in areas with intense speculative buying, we are definitely in a buyers market in the majority of areas and price points. For first time home buyers and investors the current combination if increased inventory and low interest rates make this an ideal time to buy. While interest rates are not expected to move up much in the next few months I believe that once any hint of an official housing bottom is recorded that the media will widely report this empowering many sellers with the belief that they don't need to forfeit as much to get a transaction done.

For current home owners selling and moving up to a higher price point the "buyers market" effects on their more expensive home should still leave them in a strong net position. As always my buyer and seller clients find themselves extremely will informed about current market values and trends enabling them to make prudent decisions in any market condition.

October Pending Home Sales Report

The pending home sales report for contracts signed in Oct. came in 13.2 percent lower than the same time last year and 1.7% lower than last month. Nov. and Dec. are expected to continue trending slightly lower as is expected during the holiday season. While the Atlanta market is not truely experiencing the dramatic downturn that the media is focused on, buyers can us this to their advantage and get contracts in place for closings in Jan. Once the media picks up on any sign of a positive turn sellers will believe they are back in the drivers seat and will not be as open to negotiation. Email me today to get started.

Steps to Prepare for Homeownership

1. Decide how much home you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop a wish list of what you’d like your home to have. Then prioritize the features on your list.

3. Select three or four neighborhoods you’d like to live in. Consider items such as schools, recreational facilities, area expansion plans, and safety.

4. Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney’s fee, and transfer fees average between 2 percent and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report.

6. Determine how large a mortgage you can qualify for. Also explore different loans options and decide what’s best for you.

7. Organize all the documentation a lender will need to preapprove you for a loan.

8. Do research to determine if you qualify for any special mortgage or downpayment-assistance programs.

9. Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.

10. Find an experienced REALTOR® who can help you through the process.



Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Ways to Make Your House More Appealing

1. Get rid of clutter. Throw out or file stacks of newspapers and magazines. Pack away most of your small decorative items. Store out-of-season clothing to make closets seem roomier. Clean out the garage.

2. Wash your windows and screens to let more light into the interior.

3. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator. A clean house makes a better first impression and convinces buyers that the home has been well cared for.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows.

5. Put higher wattage bulbs in light sockets to make rooms seem brighter, especially basements and other dark rooms. Replace any burnt-out bulbs.

6. Make minor repairs that can create a bad impression. Small problems, such as sticky doors, torn screens, cracked caulking, or a dripping faucet, may seem trivial, but they’ll give buyers the impression that the house isn’t well maintained.

7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

8. Patch holes in your driveway and reapply sealant, if applicable.

9. Clean your gutters.

10. Polish your front doorknob and door numbers.
Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Fix Squeaky Floors

I was just watching Ask This Old House and they demonstrated a really great system for eliminating squeaks in carpeted floors. It is called Squeeeeek No More and basically it uses a special tripod to accurately set the depth of special screws that are designed to break of just below the surface of the subfloor. The threads still in the subfloor hold it down without leaving any marks in the carpet or anything to be felt when walking over the area. Here is a link to their demo video. Pretty smart system.

New Meebo Live Chat Added

I've just finished adding a live chat window to all pages on my site. I think it will be a great communication tool for all of my visitors. After researching options I choose the Meebo widget as it seemed the most functional. The chat window automatically displays if I'm online or not and allows users to pick a nickname that will be remembered the next time they visit my site. The one thing I didn't like was that when visitors change pages the current conversation is not carried over. If the user has chosen a nickname I can see them on the new page but if they have not they receive a new generic name. I thought for a minute about converting my site over to frames to correct this but I would prefer to only use frames where I have no choice. My current solution is to simply add a link below the chat window to open a separate chat window. Check it out for yourself.

New RE/MAX balloons animation

Well I think my new animated RE/MAX balloon banner has turned out really well. Went from concept to completion in record time. (what record?) This is corner stone of my new hypnotism based marketing strategy. Keep those listings coming.

Things to Understand About Homeowners Insurance

1. Look for exclusions to coverage. For example, most insurance policies do not cover flood or earthquake damage as a standard item. These coverages must be bought separately.

2. Look for dollar limitations on claims. Even if you are covered for a risk, there may a limit on how much the insurer will pay. For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3. Understand replacement cost. If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient. This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

4. Understand actual cash value. If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. This is called actual cash value.Understand liability. Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court. However, there is usually an upper limit to the amount of coverage provided. Be sure that it’s sufficient if you have significant assets.


Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Gwinnett County I-85 SR-316 Interchange Project

One of the many projects that will lead to further expansion into Gwinnett is the expansion of the 85 and 316 Interchange that will add 13 bridges and 17 miles of HOV lanes. The GDOT reports that 80% of the work will be completed without lane closures. Anyone who has taken 316 to I-85 recently knows that with 316 reduced to one lane and traffic jams have become normal. I have found that taking Old Norcross to Breckinridge then getting on I-85 at Pleasant Hill when coming from Lawrenceville is the best route during peak hours. Once completed in Dec 31, 2008 this project will provide increase capacity allowing commuters to move further down 316 increasing housing demand and prices in their path.

Take the Trauma Out of Homebuying

1. Find a real estate professional who is compatible. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the practitioner you choose is both skilled and a good fit with your personality.

2. Remember, there’s no “right” time to buy, any more than there is a right time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.

3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas will make it much harder to make a decision.

4. Accept that no house is ever perfect. Focus in on the things that are most important to you and let the minor ones go.

5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price may lose you the home you love.

6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that have a big impact on what it’s like to live in your new home.

7. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate insurance availability, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.

8. Factor in maintenance and repair costs in your post-homebuying budget. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate.

9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits.

10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually from 1998 to 2002, a home’s most important role is as a comfortable, safe place to live.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Reasons to Own Your Own Home

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.

2. Gains. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. And while there’s no guarantee of appreciation, a 2001 study by the NATIONAL ASSOCIATION OF REALTORS^® found that a typical homeowner has approximately $50,000 of unrealized gain in a home.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your mortgage payments don’t go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.

6. Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

To calculate whether renting or buying is the best financial option for you, use this calculator courtesy of Ginnie Mae:
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH



Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

New RE/MAX Magnets

With as much driving around as I do around Atlanta I decided to add that to my marketing plan. Since my R-class is white I was able to use magnetic signs versus more permanent options. I composed the artwork myself and had Signs Now make them up for me. If you found out about my site by seeing these signs let me know.

Tips for First-Time Homebuyers

1. Be picky, but don’t be unrealistic. There is no perfect home.

2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.

3. Get your finances in order. Review your credit report and be sure you have enough money to cover your downpayment and your closing costs.

4. Don’t wait to get a loan. Talk to a lender and get prequalified for a mortgage before you start looking.

5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion.

6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the rental market in your area?

7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.

8. Don’t let yourself be “house poor”. If you max yourself out to buy the biggest home you can afford, you’ll have no money left for maintenance or decoration or to save money for other financial goals.

9. Don’t be naïve. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.

10. Get help. Consider hiring a REALTOR^® as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Ways to Lower Your Homeowners Insurance Costs

1. Raise your deductible. If you can afford to pay more toward a loss that occurs, your premiums will be lower.

2. Buy your homeowners and auto policies from the same company. You’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.

3. Make your home less susceptible to damage. Keep roofs and drains in good repair. Retrofit your house to protect against natural disasters common to your area.

4. Keep your home safer. Install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.

5. Be sure you insure your house for the correct amount. Remember, you’re covering replacement cost, not market value.

6. Ask about other discounts. For example, retirees who are home more than working people may qualify for a discount on theft insurance.

7. Stay with the same insurer. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

8. See if you belong to any groups—associations, alumni groups—that offer lower insurance rates.

9. Review your policy limits and the value of your home and possessions annually. Some items depreciate and may not need as much coverage.

10. See if there’s a government-backed insurance plan. In some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your Realtor^®.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

Capital Gains in Real Estate

When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:

1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.

2. Add adjustments:
§ Cost of the purchase—including transfer fees, attorney fees, inspections, but not points you paid on your mortgage.
Cost of sale—including inspections, attorney’s fee, real estate commission, and money you spent to fix up your home just prior to sale.
Cost of improvements—including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. The total of this is the adjusted cost basis of your home.

4. Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

You have lived in the home as your principal residence for two out of the last five years.
You have not sold or exchanged another home during the two years preceding the sale.

Also note that as of 2003, you also may qualify for this exemption if you meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2005. All rights reserved. www.REALTOR.org/realtormag