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.

Why I Chose Exit Upward Realty

A friend who is a 33-year veteran of real estate and licensed in residential and commercial in several states recommended Exit Upward to me when I became a realtor almost two years ago. She is a successful person I know and trust. But even with all her great qualities, I did not take her word alone. I researched and interviewed with various agencies, weighing the pros and cons of each.

Exit has the international resources, educational offerings, personalized service, ethics, and rewards program that I value. The affiliates and broker are well-versed in real estate but operate in a down-to-earch fashion. We care about one another and want to see each other succeed. We offer high quality service to our clients. I felt at ease in the office and didn't feel thrown to the sharks like some new realtors have experienced.

The education is superb - whether offered regionally, nationally, or in our own office by our broker, Raymond Warren. The environment fosters learning. No question I ask is considered dumb.

My broker had more than 30 years in real estate. He takes an interest in each person in the agency, and I believe he can be trusted to value my needs and the needs of my clients. Each agent is treated with respect. It is a joy and a pleasure to be a part of this group of people.

Fees are reasonable and lower than other agencies I visited without sacrificing quality. Although Exit is new to Chattanooga, it is an international agency that is rapidly growing and has 50,000 agents. Exit offers the multiplicity of resources one would expect of a large organization without the high fees of many agencies.

Our local agency has an Office Administrator who is also a licensed agent. Not all agencies offer this luxury. The administrator understands the business and keeps us on track. He is available to help with creation of ads, use of various computer tools, and keeps the office running smoothly.

Exit has a residuals program that works a lot like a retirement program for agents who have recruited other agents who are successful affiliates. If you bring in an agent who is successful, you have the opportunity to increase your own earnings. I haven't heard of any similar incentive in the business.

I have been in the real estate business going on two years now. I believe more than ever that I made the right choice in choosing Exit Upward. I have the support, encouragement, expertise, and training I need.

I work with people who are courteous and knowledgeable, and I respect all of them. I would encourage new or experienced realtors who have a strong work ethic and desire to succeed to join me, Pat Branham, at Exit Upward in the Hixson-greater Chattanooga area. Feel free to email me at pbranham@upwardrealty.com and I will be happy to introduce you to my broker and the opportunities and advantages of being part of Exit Upward.

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