Restarting this Blog....It has been too long!

Friends and followers of this blog, little did I realize that more than 1100 viewings have occurred on "Winning Home Advice."  That is encouraging to this author and good reason for restarting the blog.  I owe the followers an explanation of my long absence.  Since the last post, I have retired from my Director job at a large insurance company, have had two new grandbabies, had two major surgeries, have gotten married, and have moved to Rhea County....still within easy reach of my primary customers in Chattanooga but in better reach of new clients in the Greater Knoxville Area....and reaching all the way to Roane County.  My new husband and I have done a lot of traveling, and I have caught up and "grandbaby watching."

I am ready to settle back down now and plunge back in to real estate.  For your information, I now have access to MLS information all the way from Greater Chattanooga to Greater Knoxville....from Lookout Mountain to the Smoky Mountains and from Athens to Oak Ridge and in between.  This is beautiful historic country with rolling, productive farm lands and with sky scrapers looking out on bustling cities with interested tourists.  This includes top secret research in Oak Ridge and the new Volkswagen Plant with the newest technology in Chattanooga. 

We have magnificent institutions of higher learning in East Tennessee from the University of Tennessee system that includes UTC and a medical branch in Chattanooga to many proud institutions established by people of faith and private founders.  We also have a fine network of two-year colleges churning out vibrant graduates with skills to get high-paying jobs that are in demand in our area and outside for those who want to travel. 

From the Appalachians to the Cumberland Plateau with beautiful forests, hiking trails and streams of clear water to tourist attractions like the Chattanooga salt and fresh water Aquariums and the many lakes bustling with boats, pontoons, and para sailors; we have a way of life that any one would envy. 

We have the arts and playhouses located in our major cities like the Chattanooga Theatre Center and Clarence Brown Theatre in Knoxville and stretching out to smaller areas such as the Spring City Playhouse and the historic Cumberland County Playhouse in Crossville.

But I digress.  This blog is primarily for real estate purposes....for me to assist those with home buying, home selling, or home improvement interests.  I provide information on the latest news and ideas in these areas.  I am a Realtor®, and I enjoy staying in touch with those who read this column and offering insights from others who are experts in mortgage interest rates, home staging, or other areas to those who might want to buy, sell, or better stage their own homes - even if only for their own enjoyment.  So...here we go again.  I plan to post more regularly on this blog in the future.  Nice to see you again!

Hasta la vista.....Pat

Home Staging for a More Successful Sale; Eliminate Negatives

A March 2012 artile in Zillow's Blog published by "Inman News" on line offered home stagers' suggestions for what is seen as negatives to a successful sale of homes. Think about these items as you prepare your home for viewing so that negatives will not distract from the better features your home enjoys.

1. Fake plants. While some artificial plants look more real than others, most becomeo dust collectors over time. Living plants often cost less than fake ones and usually improve air quality rather than adding allergens.

2. Clutter. Clutter prevents buyers from seeing the character of a room and make rooms feel smaller. Group like items, and think of what you really need to keep. Could Goodwill or the Salvation Army use your clutter more than you?

3. Unmade beds and dirty windows. Remember that clean windows and made beds show better than sticky fingerprints and piles of bedcovers.

4. Wood paneled walls. Consider painting as one of the least expensive ways to update your home, especially if you are willing to properly prepare the room and put careful labor to bringhten up those dark, paneled walls.

5. Overly full kitchen cabinets. Clean out your kitchen cabinets from unneeded, unmatched items. Too many storage containers without matching lids, old empty coffee cans and similar items distract from the room and make the cabinet space appear too small.

6. Too many pet reminders. Some buyers like pets and others do not. Even if your pets are put away for home viewings, keep only the most needed pet items out. Put away other items to keep your home tidy. A neat food and water dish with no stray spills or scattered food on the floor is more impresseive than a mess. Lots of pet toys, pet blankets, and fur all over the furniture detract from the beauty of your home.

A home that appears "move in ready" and invites you into the room is more successful in keeping a buyer's interest than one that is cluttered, messy or dated. Use these simple tips from home stagers to prepare your home for viewings, to show off the features of your home, and to make the rooms and cabinets appear more spacious.

Mortgage Rates, Sales Prices and Other Housing News

Fixed mortgage rates remain at near record lows according to Freddie Mac, with the 30-year average at 3.9 percent for the week ended March 1. For the same week, 15-year fixed loans were 3.17 percent.

Meanwhile, the National Association of Realtors (NAR) members were polled recently for their confidence index and were upbeat to the tune of 67 percent predicting some price gains in housing. Agents who participated in the NAR survey reported a slight fall in median time on the market. Unfortunately a recent CoreLogic report showed almost 28 percent of homeowners were at or near underwater at the end of 2011.

Keep in mind that if you sell your home at a lower price than you hoped for, you can often make up the difference or more when you buy another home; particularly if you plan to buy a more expensive home.

Impacts on the 2011 Housing Industry

“RealtorMag” the on-line magazine published for the National Association of Realtors, listed issues impacting the housing industry in 2011. These were noted by Trulia’s chief economist, Jed Kolko in a “Time” magazine article. Some of these issues and their impacts, paraphrased, are:

1. Fallout from banks approving foreclosures without proper review procedures. The consequence is that banks now have to take extra precautions. Regulators and banks are working on a settlement that could improve the pace of foreclosures in 2012.
2. Natural disasters: tornadoes, floods and hurricanes pushed the National Flood Insurance Program into the spotlight. This program was still strapped financially from Hurricane Katrina. Thus, insurance premiums did not fully cover the Katrina disaster. Home owners living in flood-prone areas must now have flood insurance to get a mortgage. If the National Flood Insurance Program is not taken beyond its current May 2012 extension, the future of mortgages in areas prone to floods is uncertain.
3. Loans backed by Fannie Mae, Freddie Mac and FHA. Mortgage lenders are willing to charge lower rates for loans backed by Fannie and Freddie with a lower conforming loan limit. A smaller number of loans now qualify for this backing according.

Regardless of impacts to the housing industry in 2011, it is now 2012. The future is ahead. While understanding negative impacts on the past can help us plan for the future, it is time to look for new ways around obstacles to make the dreams of home buyers and home sellers come true.

Energy Efficient or Green Homes

A major expense squeezing homeowners today is heating and cooling cost. Although green upgrades are often expensive, their benefits can be large over time. Witness solar panels, double pane windows, and replacing appliances. All of these require sizable investments up front. But energy efficiency doesn't have to be expensive or labor intensive.

Small changes such as weather stripping can add up over time. Flourescent light bulbs can replace incandescent with minimal investment. Wrapping hot water heaters with insulation is inexpensive and requires little effort. In addition, the temperature on a hot water heater can be turned down to reduce waste and reduce accidental burns. Some laundry can be washed in cold or warm water rather than hot. Shorter showers will reduce hot water costs. Adjusting the heat and air thermostat 2-3 degrees can make a sizable difference in utility bills. These options require minimal effort and investment.

Check off energy efficient and environmentally-friendly changes one at a time, starting with the least expensive if you wish. You may be surprised at how quickly you see a difference in your utility bill. Most worthwhile and important changes in life take time. "Going green" may bring attractive results in your budget with minimal effort and investment. The extra money at the end of the month can provide the motivation you need to help you decide to use that bonus or income tax refund so you can install more costly green options, benefiting you and your neighbors.

Lending Down by Banks

According to data from the FDIC, in the year ending March 2011, loan volumes fell $260 billion. This is in the wake of deposits that grew by $300 billion and assets that have grown by $80 billion. In addition, profits were up by $12 billion.

Lawrence Yun, Chief Economist of the National Association of Realtors®, noted in a recent article that the economy is slowed when banks accumulate profit at the expense of lending.

Unemployment, underemployment, the trace deficit, tornadoes, and many factors can affect the economy; but banks have traditionally paid interest on deposits and loaned to depositors while investing to make additional profits.

Tight lending conditions can result in further price declines in home values, although prices in some areas are solid or heading up according to Yun.

The housing recovery and economic recovery can be sped up by banks returning to their roots of lending more when deposits are up. Although caution has been in order as more homeowners have defaulted, particularly when mortgages are under water, reducing lending to a trickle is not the way to keep the economy healthy. In the long term, what is good for America is good for the banks.

Another Big Dip in Home Prices

Home prices have dipped again, in the 3rd straight quarterly drop, down 5.1 percent from a year ago. According to a 5/31/2011 internet article on the CNNMoney website authored by Les Christie, prices are the lowest they have been since 2002. Prices are down almost 38 percent from the peak five years ago according to S&P/Case-Shiller national home price index.

A spokesman for S&P, David Blitzer, said the downward spiral in homes prices continues with no relief in sight.

Mr. Christie pointed out that the housing market went through a brief recovery in mid-2009, recovering nearly 5 percent of losses but resumed a slump after homebuyer tax credits expired last April.

Foreclosures and repossessed homes continue to flood the market, making it difficult for conventionally sold homes to compete and keep their value. This has a devastaing effect on new construction which typically contributes to economic recovery. But new construction frequently cannot compete with today's existing homes. The sale of existing homes does not contribute nearly as much to economic recovery as new home sales which bring with them jobs for construction workers.

And what is the good news? Now may be a good time for people who wish to buy a home at a reduced price or invest in existing homes they fix up for resale or utilize for rentals. Carefully evaluate your own circumstances with specialized professionals so you can make the most of your search and wisely use any investment dollars.

Low-Cost Tips to Improve Home Sales Potential

Welcome to Summer! Time to shed the winter blues and increase your home's sales potential through low-cost improvements. According to Melissa Dittmann Tracey of Realtor House & Home, home sellers don't want to spend big bucks to improve their chances with today's smart buyers. Melissa writes there is a lot that sellers can do at low or even no cost. Try these tips:

1. Pack up all the extras before you sell your home. Rooms appear more spacious and inviting if they are not cluttered with too much "stuff."
2. Pick a focal point for each room (bed in bedroom or piano in music room, for example) and make that the focus of your decorating and placement.
3. Attend to details like replacing burned-out light bulbs, and putting away items you aren't using. Keep it neat and well maintained.
4. Spruce up stainless steel sinks and make them shine with baby oil and club soda according to DoItYourself.com.
5. Let the light shine in. Open blinds and clean your windows!
6. Use an area rug over lack-luster flooring to define your living area and add a touch of color.

Use your creativity. You will be surprised at the results you can achieve on a low budget. And in the mean time, you will enjoy the living spaces more until a sign is placed in the yard with "Sold."

Tips for a Cozy Kitchen

With today's busy lifestyles, home buyers are often opting for cozy, connected kitchens according to Realtor magazine. The kitchen is becoming a place for more than cooking. It is a gathering place for entertaining, homework, conversation, and projects. Homes are trending smaller. ,Thus versatility is a priority for optimal kitchen design. Dining rooms are not segregated from the kitchen but blend openly with kitchen space. Likewise, living room space blends into the same area without the confinement of walls. So. What can you do to create a social and cozy feel to a kitchen that is already created as you prepare your home for sale or if you can't afford to remodel? Try these tips to cozy-up your existing kitchen: 1. Soften the light in the room with sconces or accent lighting. 2. Use comfy, upholstered chairs rather than wooden bar stools. 3. Add functional and conversational space with a kitchen island. 4. Add a buffet, cupboard, or wall shelving for useful storage space and to attract buyers who want more storage. 5. Repair cabinets; replace broken hardware, and replace broken countertops as you are able. Don't stress over what you cannot do. Take one step at a time. You don't have to spend a lot of money or time to make a kitchen cozy. Come up with your own unique solutions. Sometimes an item moved from one room into another such as a painting moved from the hallway to the kitchen can soften the look and feel of the kitchen. You will get ideas as you observe other's homes or visit interior design shops. Most of all, enjoy the journey! And call me, Pat Branham, if I can help you find your ideal kitchen in a desirable home!

Tips for Staging Your Home Inexpensively

The National Association of Realtors "houselogic" website offers many tips for home buyers and sellers. Whether you live in Chattanooga, TN or another area, being familiar with inexpensive home staging tips can boost your potential to sell your home in today's competive market.

See the full article and explore the website at: http:\\buyandsell.houselogic.com. You will be amazed at the simple, low-to-no cost ways you can attract buyers and set your home apart from other listings in the neighborhood.

First, do a thorough cleaning of your home. Don't just vaccum in the middle of the room and dust around objects. Remove stains and pet odors from carpets and clean down to the base boards and blinds. Make your tile or wood floor gleam and polish your furniture. Wipe all decorative objects.

And speaking of furniture and decorative objects, remove personal items such a family photos and personal mementos from walls and tables. Store some of your furniture to make your rooms look larger. Get rid of clutter and organize books and papers. Kitchen countertops should display minimal small appliances or other items. Less is better. Buyers want to see themselves living in the home.

Organize your furniture in groupings with focal points such as a fireplace. Paint your sroom with fresh, neutral tones and add a few splashes of color such as an afghan , plant or pillow. Put fresh linens on the beds, and put complimentary, clean and lush towels in the bathrooms. Replace the shower curtains if needed.

Finally, create a pleasant outdoor entry that invites buyers inside by keeping your lawn mowed and by trimming your landscape. Add a pot of colorful flowers near the entrance to the home.

Staging a home doesn't need to be expensive. Practical and low-cost staging can invite buyers to your door and lead them to come inside. Appropriate staging is worth the time and effort and increases your chances of a quicker sale.

Cost Versus Value of Remodeling of Your Home

Some remodeling projects that offer high value for low cost do not require a major investment, according to the article "Help Clients Stretch Their Remodeling Dollars" in Realtor magazine January 2011. As home values have slumped, they pulled down the cost-to-value ratio and extended a downward trend that began in 2006. Construction costs moved down, but estimated resale value moved down more. In today's buyer's market, home sellers must get a foot up on the competition with smart choices that stage the inside and outside of their homes. It pays to know which projects offer the most resale value, not only to attract more buyers but also to get the most value per dollar spent.

At the top of the list nationally? Replace an entry door with a 20-gague steel unit, including a clear dual-pane half-glass panel, jambs, and an aluminum threshold. Replace the existing lock set with a new brass or antique brass finish lock. Assure the mold and casings complement the syle of the home and neighborhood. Inspect the door before purchase to be sure there are no dents.

Garage door replacement is another cost effective improvement if used properly. Make an impressive splash and provide the option of a workshop area for handymen by including windows that bring in natural lighting through the door. Reduce temperature extremes with a door that is insulated.

Add curb appeal with new fiber-cement siding that has been factory primed and factory painted. Attract more buyers with siding that will save them the cost of repainting every few years.

Update your kitchen by repainting the cabinets (professionally if needed) rather than replacing them at a prohibitive cost, especially if you don't plan to live in the home for a while. Do some of the work yourself if you have the skills. Shop for low-cost, updated hardware that will give your kitchen a newer look. Do not overspend on your kitchen with expensive counter tops and fancy gadgets.

Consider a deck addition. Many buyers want a deck but not one that is too small to use or too large to maintain. If you already have a deck, you might add a natural stain to wear more evenly than a colored stain.

Today's real estate climate is competitive with foreclosures, REO's, short-sales and auctions competing for buyers' dollars. Give your property the edge needed to attract maximum viewers and increase your chances of beating the competition. Use your dollars wisely when you remodel to increase your profit margin and meet your home selling goals.

Top home improvement values

Homegain.com recently provided a list of top home improvement values that bring the highest returns for the investment. What is no surprise is that decluttering and cleaning are at the top of the list. Home buyers will frequently turn away quickly from a home that is dirty and cluttered. It typically costs very little to clean a home and throw away items that take up space without adding value. Let your home shine so others can see themselves living there. Get rid of the things you don't need...old newspapers, junk mail, expired magazines, catalogs, trash...on and on. After you eliminate the clutter; clean the walls, countertops, appliances, floors, lamps cabinets, etc. Make your home shine. Although it costs little, it will set your home apart, may put it on a buyer's short list and will probably show off your home's best features.

Another low-cost winning home improvement is to brighten up the place. Your home will be more inviting after you clean, and an inexpensive coat of paint in a neutral, light tone will do wonders for the ambiance of the rooms. Neutral colors will improve the flow between rooms and will likely make the rooms appear larger. You should also replace missing light bulbs and add a few lamps to change a room from dark to bright and make the room more calm and refreshing.

Stage your home. Move furniture into groupings of typical living areas such as areas for conversation, eating areas, and reading or TV groupings. Make the room appear more spacious by not crowding too much furniture in one polace. Eliminate items that collect dust but don't fit the theme of your room. Wilted and dying plants as well as out-of-date flower arrangements or too many pictures on the walls make a room too busy and less inviting. Do not have an over-abundance of family photos. Buyers need to imagine themselves in your home....not be distracted by personal items.

Provide curb appeal outside the home and make your yard inviting. Give the yard a pleasant and livable appearance with neat and attractive landscaping that flows. Keep your lawn mowed. Get rid of weeds and dying shrubs. Replace them with neatly trimmed landscaping. It doesn't have to be expensive. Add some low-cost mulch to blend plants and shrubs. Bring in a few spashes of color with plants in season.

These tips can move your home higher up the list above others for potential buyers. Often buyers will cruise a neighborhood and target homes to view that have an inviting experience. But don't stop at the curb. Make sure you keep the buyer's interest when they come inside with the pleasant and uncluttered appearance of the rooms. Many homes are not selling and some are not even getting offers in today's market. With low cost, minimal planning and a little elbow grease, you can make your home stand out from the others and increase prospects of a successful sale.

Eight Important Things to Know about a Mortgage

So, you are ready to buy a home and want to understand basic points about a mortgage? Here is a simplified guide on important things you need to know regarding mortgage loans. For the full description of these terms, go to my source, The Smart Borrower Center on Lending Tree's website at lendingtree.com. Look under "Tools to help you borrow better."

Compare these important factors when choosing a mortgage:
1. Principal - The amount you are borrowing to buy your home. When you shop for mortgages, lending institutions will tell you how much they are willing to lend and help you determine what you can afford.
2. Type of mortgage - Usually fixed or adjustable rate mortgages. With a fixed rate, you usually pay the same amount each month for the life of the loan. This can mean less risk but a little higher interest rate. An adjustable rate mortgage (ARM) may provide a lower rate but change with the market, which can increase your risk and payment amount. Discuss options with your lender.
3. Interest rate - Consider the annual percentage rate (APR) which takes into account the interest rate as well as the other costs in the loan. Review with the lender how your interest rate will change if you choose an ARM.
4. Monthly payment - Think about the amount you can comfortably afford to pay each month for your mortgage. The lowest interest is not always the best deal. You will want to reduce your principal with each payment so you can build equity and use that money for a down payment when you move to a new home.
5. Mortgage term - the number of years your loan will be active. Shorter-term loans carry higher monthly payments, and longer-term loans carry lower monthly payments. The term of the mortgage can be set based on what you can afford to pay each month and how soon you wish to pay off your loan.
6. Discount points - These are offered by some lenders as a way to lower the interest rate. One point equals one percent. For each point, The Smart Borrower Center estimates yoy can lower your interest rate 0.25 percent. Think about how long you plan to keep your home when deciding what makes sense about paying discount points.
7. Lock-ins - A specific interest rate and possible discount points quoted by a lender. The market can change while you are looking for a home. Locking in the interest rate may help protect you against rising interest rates.
8. Closing costs - Fees charged when closing mortgage deals. This can run up thousands of dollars on what you must bring to the table at closing. Be sure to get a good faith estimate from your lender so there are no hidden costs.

Best wishes as you shop around for a good lender, good interest rates, and the best match for your individual needs. I can give you the names of reputable lenders in the Chattanooga, TN area who will help you find what you pre-quality for in a loan.

Foreclosure Alternatives - Possible Help with HAFA

Are you worried about foreclosure? Having trouble keeping up with your mortgage payments? Possibly even owe more than your home is worth? Has your income gone down or your mortgage payments gone up?

Homeowners who are struggling to keep up with mortgage payments may find help through the 2009 Making Home Affordable Program (MHAP). This program is designed to help stabilize the housing market and help eligible homeowners. There are alternatives that homeowners should investigate. A word to the wise.... Beware of scams - of those who would take advantage of you, pressure you and try to make money off your difficult situation.

One alternative is the Home Affordable Modification Program (HAMP), designed to make mortgage payments more affordable for eligible homeowners. This program can help homeowners avoid foreclosure and the associated drop in their credit scores. Read more at www.makinghomesaffordable.gov.

Another alternative is the Home Affordable Foreclosure Alternatives program (HAFA) which is designed to streamline short sales and provide a uniform process and standard forms. It also provides incentives to families and to their mortgage servicers. Eligible homeowners who sell their homes under HAFA can qualify for $3,000 to help cover moving costs to another home.

You may ask, "What is a short sale?" A short sale is an alternative for homeowners who cannot qualify to stay in their homes through loan modification. The servicer (represents the lender) allows the homeowner to list and sell their mortgaged property even when the net proceeds are less than the total amount due on the loan. With plummeting home values in many locations, this can be a time-consuming but more palatable alternative than foreclosure.

Please note, this is not hassle-free. However, if approved and successful in the short sale, a homeowner can get out of a difficult mortgage and maintain a more desirable credit profile than with foreclosure. Be warned that your credit score will still take a significant hit with a short sale. There are a lot of hoops to jump through, but the potential for a $3,000 incentive and less severe credit score repercusions can make the effort worthwhile. Homeowners who go through a short sale can become homeowners again perhaps in two years as opposed to the three or more after a foreclosure.

States may differ, and types of mortgages affect the approval process. Carefully consider your alternatives. You may have equity in your home and just need a break with a lower payment through a loan modification program. Or you may be struggling so much that you have missed payments and face foreclosure unless you can work with your lender. Alternatives to foreclosure are not easy. There are requirements that must be met, but you might be able to avoid foreclosure.

You will find a number of resources and links at financialstability.gov. Consult a tax professional and/or attorney for the particulars regarding your own situation. Deliberate youro alternatives carefully, and do not be drawn into scams.

Outdoor Kitchens - Hot New Trend in Homes

Outdoor kitchens....you've seen them on HGTV. They are hot, and people who like to entertain often want this option; but the question remains, "What should you look for in an outdoor kitchen?"

The outdoor kitchen is attractive now, but what will it look like in 2 years? In 5 years? In 10 years? Are the products durable and weatherproof?

You find seating for lots of guests, but is the ventilation adequate and designed to keep smoke and odors away from guests? The space will not be pleasant if the design is not optimal. Who wants to sit outside and cough from smoke blowing back in their face or smell cooking odors rather than the great outdoors?

Assure the designer and installer will stand by their work. Check with resources and find a reputable contractor/designer/installer.

An outdoor kitchen can be an enjoyable bonus for your family. Whether you are planning to add one to your home or considering a home with this feature, select carefully; and don't make your decision based on looks or cost alone.

Adapted from "Daily Real Estate News," July 2, 2010

Importance of Home Loan Preapproval

Buyers who want to set realistic expectations for a home purchase should consider obtaining a loan pre-approval letter from a lending institution prior to shopping for a home.

Buyers often have a wish list for the size, style, neighborhood and cost of a new home. They may begin searching for a home in glossy real estate home finders, on-line searches and just driving through neighborhoods they like. However, they would be wise to know up front the price range for which they qualify.

A trip to a lending institution which they trust is a good first step prior to shopping for a home. The buyer can complete an application (which may have a small fee) and find out the price range for which they qualify. Otherwise, they may shop outside their qualified range and waste their own and a realtor's time. They can become disappointed if they find a home that meets their wishes but for which they cannot obtain a loan.

A buyer's credit rating, income and other factors will affect the home price that a lender will approve. Once they obtain a price for which they are approved, they can begin their home search with realistic expectations. Some home owners want proof of a potential buyer's loan pre-approval prior to considering an offer by that buyer.

For a buyer to maximize their time searching for a home and to be better prepared to make an offer and probably shorten the time to close the sale, loan pre approval is an important step toward moving into the home of their choice.

Foreclosure statistics - Who are They?

Have you wondered why so many homeowners become foreclosure statistics? If you think it was primarily because consumers were outwitted by lenders, you might want to think again. Research at the University of Arkansas shows outwitting by lenders was not the main stream.

The U AK study shows that most foreclosures were in affluent and educated households with lower numbers of children in geographic areas that had experienced very rapid real estate acceleration. Research divided households into 21 life stage groups to determine which groups experienced the most foreclosures.

The group with the most foreclosures were affluent adults born between mid 60's and early 70's. This group had aggresive investors. The group that experienced the highest number of foreclosures may have the best consumer protection laws, given their education and background. More creative policy implications may be needed based on this research.

Completion of Short Sale and Foreclosure Certification

I recently completed in-class and on-line instruction to receive the SFR (Short Sales and Foreclosure Resource) certification from the National Association of Realtors (NAR)


The SFR designation is helpful in today's distressed real estate market and is the only one of its kind that focuses on the buyer's and seller's side of distressed property sales.


Call on me if I can be of assistance to you. You may reach me at the Exit Upward offic at 423-847-8001 or 423-354-9294.

Foreclosures in 2009 - A Buyer's Market

The Associated Press reported only a few days ago that total foreclosures in 2009 were at a 21 percent increase over 2008 and a 120 percent increase over 2007. This is according to a foreclosure sales site - Realty Trac - posted in their year-end report for 2009.

Fourth quarter foreclosures decreased 7 percent from the third quarter but were still up 18 percent compared to 2008. December 2009 foreclosures were up 14 percent over December 2008.

For those I serve as a licensed Realtor in TN and GA, Georgia was listed as one of the top 10 states in foreclosures. But I've seen personally in TN many foreclosures, some competing with homes I've listed.

Many delinquent loans continue to hang a dark cloud over the housing market. Of these, a fair number will end up as foreclosures in 2010 an as these homes work through the lenders' backlog.

What does this mean for you? Well...it can mean a lot of things.

If you are listing a home, it will be competing with distressed homes. If those homes are not in foreclosure yet, many sellers are still desperate to sell their homes and avoid foreclosure. They will price accordingly. Your home must compete with these.

You can take advantage of low-cost updates (some listed on this blog - such as painting) and you can price your home at a reasonable rate based on comparables which I will be happy to provide.

Not all news is bad. Remember that when you purchase your next home, you will be selecting from a market where others have to compete with distressed buyers and foreclosures, so you may benefit when you are on the buying end of a transaction.

If you do have a home to sell, I will be happy to help you navigate the pricing of your home and to offer suggestions on pricing that will assist you in gaining a sale. Less than 50 percent of homes on MLS are selling, so you must price the home correctly using appropriate comparables. If you have no offers in the first two-to-three months, the market may be tellling you that your home is overpriced. I will also be honest with you about ways you can make your home more attractive in the market, whether it is improving curb appeal, cleaning out clutter, providing inexpensive updates or being realistic about price.

Call me, Pat Branham, Affiliate at Exit Upward Realty in Hixson, TN. Our office is located at 6726 Hixson Pike and my office number is 423-847-8001.

Potential red flag statements from sellers - Disclosures

Most states have requirements for sellers to provide disclosures to prospective buyers However, according to the Wall Street Journal, there are some sellers who may not be as forthcoming as they should in providing full information in their disclosures.



Exaggerations may be used to draw more clients to homes by using generalities such as describing a room or lot as "big." One should use caution with such general statements and ask for more exact dimensions or take their own measurements.



Disclosures - Making statements that there has never been significant damage by a disaster can be checked by the buyer. Buyers can purchase a report from Comprehensive Loss Underwriting Exchange (CLUE) that provides a report of the home's property damage, according to the Journal article.



Taxes and heating costs - Buyers can check tax records to get updated information on the tax costs of homes and property. Many electric companies are willing to provide an average cost of electricity charges to those who simply provide an address. This is true in Hamilton County and with the Electric Power Board.



The bottom line is that one should use caution and careful examination when statements are made and be aware that some information may be left out of disclosures. Be your own advocate and look with a careful eye at the information you read in today's tough market.

Call me, Pat Branham, for your buying and selling needs in the Greater Chattanooga and North Georgia area. I will work hard for you and provide honest information to the best of my ability.