Small Homes in Vogue - Are You Considering Downsizing?

Consumers have been showing concern over slipping home values and increasing unemployment. They have become more cautious in their purchases. In today's housing market, many are choosing "affordability." Consumer caution often results in the purchase of a smaller, less expensive home.

There are a number of bonuses possible in choosing a smaller home. Other things being equal, not only are payments generally lower, but housekeeping is easier; heating and air bills are smaller; taxes are lower; and repairs and updates are less expensive. (For example, painting a large room requires for effort and expense than painting a small one; replacing a small deck is less expensive than replacing a large one.) A consumer can pay off a lower mortgage quicker if they have smaller payments with a fixed, low interest rate. Lower payments can mean extra money for travel, home improvements, college expenses or other reach other goals and dreams such as earlier retirement.

The small home is attractive to more buyers today who want to minimize cost, maximize functionality, and have less upkeep to free up their time for other things they enjoy whether enjoying time with their family or reading a good book.

If you live in a larger home but want to downsize, or if you are getting ready to buy a home; consider whether a small home might be the right option for you. Interest rates are currently low. In a buyer's market, negotiation possibilities are increased. A smaller home may afford a simpler lifestyle.

Books and articles have been written on how to make the most of less square footage. Businesswoman Genevieve Ferraro lives in a 1,800 square foot home with her husband and two children and launched her business around decorating and practical tips for owners of small homes. She believes functionality doesn't have to be sacrified in a smaller home and provides the following tips:

1. Let the room's primary function guide your decorating.
2. Keep all the elements of the room in proportion. Furnishings should be small if the room is small so the space will appear enlarged.
3. If you have upholstered pieces, allow the legs to show to create a feeling of space and light, allowing one's eyes to view items all across the room.
4. Minimize tabletop accessories and limit the number of coffee and end tables.

Many small homes are within walking distance of shopping and local attractions. Even if one plans to drive to work, this can lower expenses by reducing mileage on your car and reducing fuel costs.

Are you considering the purchase of a smaller home? Do you want to manage your budget with less consumption and lower expenses?

For your home buying and selling needs in the Greater Chattanooga area, I offer quality customer service. If you have a home to sell, I provide frequent advertising, a virtual tour, offer call capture and audio tours, and purchase access to multiple websites to capture home buyer's interest. For buyers, I provide assertive searches based on your criteria and provide call backs in a timely manner.

Begin the new year in the home of your choice that meets your needs. Call me, Pat Branham at 423-304-5597; and permit me to assist you in meeting your home buying and home selling needs. Or e-mail me at pbranham@upwardrealty.com.

30-Year Mortgage Rates Hit Record Low

According to Realtor.org (source USA Today), the average interest rate for a 30-year mortgage is at the lowest level since Freddie Mac began collecting its weekly survey in 1971. Rates have now declined to 4.71 percent the week of 12/4/09 from 4.78 percent the week prior. Fifteen year loan rates also fell from 4.29 percent to 4.27 percent, but homeowners should remember they face higher credit standards from lenders now.

During Thanksgiving week, the Mortgage Bankers Association's index of application demands rose 2.1 percent on a seasonally adjusted basis, which indicates consumers are considering taking advantage of mortgage rates at an historic low.

If you are considering buying a home, the buyer's market continues with many homes competitively priced. Around one-third of homes now selling are priced below what the owner paid. Interest rates are comparatively low for qualifying buyers. Take advantage of the extended tax credit and either buy your first home or move up to a nicer home at a competitive rate.

Call me if I can assist you with buying or selling a home. I am licensed in GA and TN and will assertively represent your interests in the desirable Greater Chattanooga real estate market

Less expensive ways to update your home for today's market

As you well know, we have a buyer's market today. We no longer live in a climate of home values going up. They are actually going down in many cases. Of the homes sold on Greater Chattanooga and North Georgia MLS recently, roughly one-third are distressed sales such as foreclosures, short sales, and desperate sellers willing to price below what they paid for their homes. This results in other sellers in the same area having to lower their prices if they want to be competitive. Affordability is a key to homes selling today. Buyers are looking for bargains, and bargains abound; so you want your home to stand out from the crowd if you are ready to sell. You may make up whatever you lose when you purchase another home, especially if you buy a more upscale home. As you know, pricing is the single most important factor in selling a home, but you improve your chances of a successful sale if you have updated your home.

Make your home competitive with others in similar character and price range. You may not have a lot of money, but you can make the most of what you have by updating through less expensive means.

I found some suggestions from Barbara Ballinger on-line that are considered affordable redos to improve the sale-ability of your home.

1. Make rooms gender neutral. Neutral palettes and limited frills can make a home more universally appealing to both sexes. Of course that means you don't want sports memorabilia everywhere either.

2. Paint in neurtral and healthy colors. Painting is considered the cheapest and easiest way to change a room. Use the right color and finish to make the room feel bigger or cozier. Nature and spa-inspired colors may be the smartest option when trying to sell a home.

3. Dated paneling can be camoflaged so it does not look dark and outdated. You can prime with two coats and then paint with white for a cottage look.

4. The kitchen is an important room in any home. Dark cabinets can be repainted white or off-white, and new-style hardware can be added. A kitchen can be painted the same color as adjoining areas to enhance the space. Ceilings can be painted lighter.

5. Neutralize the bathroom. Choose a large mirror from the backsplash to the ceiling or a large framed mirror. Update hardware.

6. Let the light in! Use treatments that play up the window style, let in light, and provide for views outside. If you don't like curtains, consider simple shades. Inexpensive lamps with a museum touch can provide additional lighting. A skylight or larger window, if affordable, will bring in the light.

7. Provide curb appeal for the outside of the home. Make your home stand out among adjoining homes so you will invite buyers in. The front door should be easily approachable with a wide walk. Attractive, professional pruning and color will add to curb appeal. Use of pottery can provide an affordable and improvement.

These are some of the ways you can make your home more buyer friendly and competitive without spending a boat load of money. And, by the way, feel free to contact me, Pat Branham, to help you market your home or help you look for the next one!

President Signs Extended Tax Credit Into Law

According to Realtor Daily Magazine News, the new and expanded $8,000 home buyer tax credit extension is expected to generate $22 billion to the economy. The credit was extended to April 30, 2010. The expanded bill includes $6,500 tax credit to current home owners who have lived in their homes five of the past eight years

Income limits were increased to $125,000 for single buyers and $225,000 for couples, up from previous limits. Home prices that qualify are capped at $800,000. Sen. Johnny Isakson of Georgia, a former member of the National Association of Realtors (NAR), was considered key in pushing through the initial legislation. The legislation was also boosted by the National Association of Mortgage Bankers Association. NAR estimates 2 million people will take advantage to the tax credit in this year.

Sources for Realtor Daily included The Associated Press and NAR.

Tax Credit - Take Action if the time is right for you

Realtor.org, an on-line website, reports that Congress is debating extending and expanding the $8,000 first-time homebuyer tax credit which currently expires Nov. 30. By the end of November, according to Realtor.org, more than 118 million home buyers will have used the credit, many who would not have bought a home without it.

The Chief Economist for MoodysEconomy.com, Mark Aandi, is in favor of extending the tax credit. As he stated so well, "Nothing works in the economy if housing is falling....the tax credit is vital to stem housing price declines. Extending the tax credit and expanding it to additional home buyers could be accomplished through using unspent stimulus money to offer more home buying opportunities to additional customers.

Realtor.org took this information from CNNMoney.com. by Les Christie (10/14/2009).

Permmit me to assist you if you wish to take advantage of this tax credit. Time is running out. Be sure to get prequalified with a lender so you can find a home and close your deal before the tax credit runs out. If it is extended, I will be glad to have you as a customer and search for an ideal match for you.

First Time Homebuyers Tax Credit

For people who recently purchased a home or are considering a home purchase that can close by November 30, the $8,000 tax credit for first-time homebuyers can be an attractive motivator. Unless extended by Congress, however; one needs to move quickly to qualify, find the right home, and meet requirements for the credit. Be sure you are prequalified with a good lender and ready to select a home that can close prior by 11/30.

According to IRS Commissioner Doug Stulman, "For people who recently purchased a home or are considering buying...[soon], there are several different ways that they can get this tax credit...."

The IRS reports that under the American Recovery and Reinvestment Act of 2009, qualifying taxpayers who purchase a home before December 1 receive up to $8,000 or $4,000 for married people filing separately.
My broker's blog provides additional information and links: http://raymondwarren.blogspot.com/2009/10/last-chance-45-days-to-close.html.

According to the IRS, the amount of the credit beginsn to phase out for taxpayers whose modified adjusted gross income is more than $75,000 or $150,000 for joing filers. Taxpayers can claim 10 percent of the purchase price under the terms of the Recovery Act. Go to www.Recovery.gov for additional information.

Please permit me to assist you in finding your first home or in other real estate needs. I am now licensed in TN and GA.

Selling Your Home in Today's Market

Have you had your home on the market for some time, but it hasn't sold? Are you thinking that you do not want to spend more money fixing up or staging your home and hoping a buyer will make an offer that permits an upgrade?

The market is not what it was years ago when homes were selling hand over fist. Even in an area like Chattanooga-Hamilton County, TN, where the market has remained relatively flat compared with other parts of the U.S., buyers are still contending with a buyer's market. At the time I write this article, I understand that less than half the homes on MLS are selling. For Sale By Owners (FSBOs) are doing much worse since they don't have the exposure to the many agents on MLS and to the on-line resources of MLS. Buyers expect an FSBO to be priced lower than a home listed with a realtor because they know a broker's fee is not involved. So an FSBO has less exposure to the market, and buyers are expecting a lower price when they do view it.

Proper staging and pricing are very important in today's buyer's market. I was recently told that of the homes that do sell, about 1/3 sell at a lower price than the owner paid. If you are selling a home, you are competing against foreclosures, short sales, and people in a distressed market. Some sellers have lost their jobs or come across other misfortunes and must sell their homes, so many are willing to take losses to sell their homes. Many people are buying smaller homes so they will have lower house payments than buyers were willing to incur in the past. People are saving more, paying off debt, and investing less.

If your home has been sitting for two months or more, it may be time to consider several things that the market could be telling you. When you are not getting offers, the market is telling you that buyers are not willing to pay or even offer near the listing price of your home. A good realtor can spend hundreds in advertising and time in open houses and showing your home; but if it is not priced and staged properly, it will likely not sell. Buyers may think your home is not in move-in condition. You are competing against updated homes with new granite counter tops, wood floors, neutral walls and other features. Some new homes are selling for a song and dance, figuratively speaking. Do you have old paneling that you could at least primer and paint a lighter color?

Buyers are getting older and may not be willing to climb stairs. They may also want fewer square footage to care for and be unwilling pay for the maintenance costs and time that a larger home requires to maintain.

Your home may not have the "WOW" factor that a buyer wants to see in the first few seconds of viewing a home. Are there cobwebs in the corners? Are screens torn? Is the wood on the deck getting old? Are there dirty place on walls, old railing on stairs, or other dating problems with the home? Are your carpets stained? Are your appliances outdated? If you are unwilling to change and update, it may be time to consider a serious price reduction - if you need to sell your home.

If you can afford it, you might consider taking down your wallpaper and painting your walls a neutral color throughout or getting a professional to do so for you. You might consider replacing dated light fixtures in a few of the rooms. Perhaps you can't afford wood floors, but you might be able to afford a wood foyer.

Do you have piles of bills or other items inside or outside your home that distract from the features of the home and make the rooms look smaller? Consider getting a storage bin if nothing else and clearing the rooms of clutter to show off the beauty and size.

You don't have to spend a lot of money to update if you are willing to put in some sweat equity or pay a professional for a few basic changes. However, if you are unwilling to update your home, it may be time to consider lowering your price so you will remain competitive in today's buyer's market.

Whatever your decision, I will be honest with you if you seek my services. I will assertively market your home if we agree to list it. I will spend my money and resources to market your home. I only ask that you cooperate with me to list it at the best price for you to remain competitive. Happy selling and happy buying to you!

Easy Home Repairs - Three quick tips to spruce up your home

Several home repair suggestions were featured in a recent issue of Chattanooga's Blush Magazine. These are easy handywoman fixes for common problems. Even I can follow the simple instructions to these fixes.

1. Fix a leaky faucet
Turn off the water to the faucet and plug the drain with a stopper or rag. Take the faucet handles off and remove the old washer behind the handles, replacing them with new washers. Replace the handles and screw back on until they feel tight but don't use extra force. Turn the water on to see whether the faucet works properly. If not, you may need professional plumbing assistance. This tip was placed in Blush from wikihow.com.

2. Open a stuck window
Blush quotes hometips.com. Their solution is to wedge a putty knife between the window's sash and frame from the inside. Tap with a hammer to loosen the opening. From the outside of the window, wedge a pry bar between the sill and sash, and apply upward pressure. Work from each corner back and forth until the sash moves up evenly. Once the window is open, chisel built-up paint or residue off the sash edge. Sand the edges smooth if appropriate and apply wax to prevent further sticking of the window.

3. Re-grout tile
Another tip the local Blush Magazine is from move.com. To replace dark or mildewy grout in your tiles, get rid of the old grout first by razoring it with a utility knife or other grout instrument. Use a color for your grout that matches your tile and ask a supercenter attendant if you should use sanded or unsanded grout (you might take a sample). Mix the grout according to instructions, and use a squeegee to apply. Using a damp sponge, wipe off the excess grout. Let it dry and wipe with a clean, damp cloth.

Whether preparing your home for a sale, moving into another home that needs a few fix ups or just spucing up the home in which you want to stay; these tips can make your home more pleasant for you and/or for a potential buyer.

Home Security While You Are Away

Basic steps that may improve your home's security:
> Make your home appear occupied at all times by leaving some lights on or using light timers.
> Ask a neighbor to park one of their cars in your driveway.
> Ask a friend or neighbor to collect mail and newspapers.
> Have a delivery hold placed on mail if no one can pick it up.
> Turn off WIFI and DSL connections to deter identity thieves.
> Use motion sensor floodlights placed out of reach from thieves.
> Forward home phone calls to your cell phone so you can be reached.

There is no certainty that you can prevent thieves from stealing your possessions, but you can lower the chances of break-ins by taking simple precautions like securing your doors and windows or not leaving a spare key for a burglar to find. As always, use good judgment, and weigh the pros and cons in the decisions you make.

Your home is a valuable possession. Enjoy your vacation or allay your fears while away through precautions that lower the chances of a break-in or thieves. And when you decide to sell your home or buy a new home, give me a call. I will be happy to assist you as you buy or sell your home in the Greater Chattanooga-Hamilton County, TN area. Call Pat Branham, Affilliate Broker, Exit Upward Realty at 423-304-5597.

Has your home been on the market too long?

Are you one of those homeowners who has been waiting for 6 months or even a year to be matched with a buyer? You've priced your home competitively, but the magic still doesn't happen.

Consider the importance of first impressions and take the time to prepare your home for a favorable showing.

Try these steps, and see if they make a difference in homebuyer interest:
1. Get rid of that clutter. If you must keep all those knicknacks, pictures, and fake flower arrangements; consider getting a storage unit, and get that clutter out of sight. Move excessive furniture out that is making your home look crowded. Permit buyers to get around and really see your home's features.
2. Think about curb appeal. Is your yard mowed, and are your shrubs trimmed? Is there trash or toys around your home? Clean it up, and give your yard a fresh appearance.
3. Clean house. Make sure the spots are off the carpet, vinyl and tile. Clean countertops, and scrub toilets and tubs. Make your home sparkle!
4. Repair obvious items and some that aren't so obvious. Some buyers climb in the crawl space and attic. Some repairs are simple and quick. Get help from a handyman if you need it, but get your home ready for move-in condition.
5. Assure lighting shows off your home's features. Do you need to paint in neutral colors and take down heavy drapes? The buyers need to envision themselves in your home.

Ask your realtor and friends that have successfully sold their homes for honest criticism. They just might have the hints that will make a difference and move your home off the market and into the right buyer's hands!

Tidy Your Home Quickly for a Better Showing!

Realtor.Org recently posted tips from the Chicago Tribune on how to tidy a home quickly. If you have potential buyers arriving within the hour, bring improved order to a messy home for a better showing to potential buyers. This is according to Julie Edelman, author of "The Accidential Housewife..."

How do you accomplish this within an hour? Try these tips:

1. Target the bathroom. Clean the sink, toilet, mirror and floor with disinfectant wipes. Empty the trash. Use toilet bowl cleaner or drop a denture cleanser into the toilet and let it fizz for 20 minutes - then flush.
2. Salvage the kitchen. Clear off the countertops. Put your dirty dishes in the dishwasher. Spray a clean smelling multipurpose spray on the counter tops and wipe down.
3. Pick up Debris. Get rid of clutter in the living room, and put it in a bag you can hide in the bedroom closet . Sort it out later.
4. Vacuum everywhere.

Oye! Now you have some order in your home, and a clean smelling one at that!

No need to panic if potential home buyers are on there way within the hour. Utilize these tips to show your home in a better light and provide an improved opportunitiy for a sale!