Chattanooga Real Estate Blog

Unfortunately all we hear about is how bad the market is.  Everything isn’t terrible, in fact it’s a great time to be a buyer.
A few reasons:

1.  Plenty to choose from

There are more homes on the market now than there has been in ages so you have a huge selection to choose from.

2.  Rates are still good

While rates have inched up a little they are still pretty good if you have decent credit. 

3.  Favorable negotiations can be had

Sellers are offering incentives to buyers, reducing prices, and leaving appliances.  I know of one seller in Chattanooga who is offering a 2008 automobile to the person who buys their home!

Barry Schwartz at Cartoon Barry Blog is in the process of buying a home.  He just had his home inspection done and has made a post on how invaluable it was and that a home inspection is a must. 

His inspector was with House Master.  Most people who know me know that House Master is also one of the companies I recommend.  Just thought his post was a great testimonial and that I would share it with you.

The National Association of REALTORS® sent out 129,500 surveys to consumers who purchased or sold a home between July 2005 and June 2006.  The survey results were compiled and a profile of recent home buyers and sellers was formed. Just over 7500 responses were returned.  Some of the noted characteristics of buyers are listed below:

The typical home buyer was 41 years old.
Among first-time buyers, the median age was 32.
More than one-quarter of buyers reported a 2005 household income of at least $100,000.
Sixty-one percent of recent home buyers were married.
For repeat buyers, the most important reason for their purchase was a desire for a larger home.

      
In the old days, your home-buying power depended strictly on how much money you made, how much cash you had for the deal and how much debt you carried. A strict formula would knock you out of the homeownership game if you couldn’t follow the stringent guidelines:

• No debt over 36% of your income.
• No monthly payment beyond 2.5 times your monthly income.
• A 20% down payment is required to buy.

With the maturing of the financial industry came new and improved home loans that have changed these requirements. Some programs allow 40% debt-to-income ratios. Some lenders now offer 3%, even 0% down payment programs. Today, two buyers with the exact same financial profile could qualify for substantially different homes, depending on what loan program they select. If you’re in the market to buy, check with your lender or give me a call to find out more about low and no down-payment plans that could help you qualify for a larger home for less cash.

You get a great opportunity today.  If you have been thinking of moving to the Southside or if you are just curious about what’s been going on there feel free to tour one of the 45 residences that are open today.  Several restaurants and shops will also be participating in the tour.

Start your tour at 1405 Cowart St at the Southside condo building.  Here you can pick up tour maps, information and refreshments.  The tour will include Clark Centre, The Southside condos, 1800 Cowart, 1900 Cowart, Tower Place, 563 E 18th St, 1518 Mitchell Ave, Courtyards on the Southside and Soho Condominiums. Be sure to register for door prizes at each location.

The Association of Visual Artists in association with The Lyndhurst Foundation, is offering grants of $15,000 to artists who move into certain Southside and M. L. King areas.  Since the program began in May 16 artists have taken advantage of it and have already moved in or will be soon.  This is a huge incentive. 

Watching this area come alive over the last few years has been exciting for me because I remember when you couldn’t walk in these areas after dark and feel safe.  It’s only going to get better as more people and businesses move into the area.

If you are interested in any of these properties (and aren’t working with someone else), you know how to reach me but be sure to tell the agents on duty that you already have an agent

Tomorrow the agents who have listings on Baker Street in North Chattanooga are going to be holding them open from 2 pm to 5 pm.  Be sure to stop by because each of us will be having drawings for door prizes.  I’m going to be at my listing at 213 Baker and will have a drawing for a $50 American Express Gift Card.

213 Baker is a great 2 bedroom 2 bath home that was built in 2004.  The sellers are motivated so stop by, take a look and make an offer!!

A while back I wrote a post about Signal Mountain’s "Space House".    According to an article in the Times Free Press it’s on the market with a list price of $184,900.  The HGTV show "What’s With That House" was here last week filming it for an upcoming episode too.  A little free advertising never hurt anyone

Apparently it’s being sold mostly furnished.  It needs a little TLC and updating.  But how often do you get the opportunity to live in a Space House?  If you are interested in seeing it, don’t forget I’m a REALTOR® and can show it to you!

The only one who benefits from a rent check is the landlord. Renters never see that money again, while homeowners usually profit when they sell. In addition, renters can’t use any of their rent payment as a tax deduction, like homeowners can. If you or someone you know is renting, it’s time to put that rent check to better use!

The mortgage-interest deduction is probably the best financial argument for buying rather than renting. Consider this example:

If you can afford a mortgage payment of $1,000 (principal and interest only), you can buy a house for $151,426 if you put 10% down on a 30-year mortgage at 8% interest. If your payments started in January, you would pay $10,862 in interest for the first year in the home. That entire amount is deductible on your federal income tax return! Assuming you are in the 27.5% tax bracket, you would save $2,989 in taxes, or $249 per month. So your $1,000 payment is really only $751 when you factor in the homeowner’s tax advantage.

When it comes time to buy your next home, your decision will be based on dozens of criteria. If you’re like many home buyers, good schools will be at the very top of your list. Even buyers without children are often concerned about the quality of schools. They know property values often reflect the reputation of local schools-both public and private-and that a home near good schools may be easier to sell later on.

Plan Ahead

It pays to look at schools early in the house-hunting process so you can narrow your focus to particular neighborhoods. Consider the following approaches and available resources for determining whether a school or school district is right for you and your children.

Define Your Idea Of “Good”

The first step is taking an honest look at your child’s educational needs. Is he or she average, exceptional, or is there a learning disability to consider? What are the student’s interests and natural abilities? Cerebral? Artistic? Athletic? It won’t matter that a school is tops in math and science if your child’s educational focus is in language and fine arts. Identifying your child’s individual needs will help determine the types of programs and educational approaches you’re looking for in a school.

Get An Overview

You can tap the resources of several organizations to find out what schools are available in a particular area and how they rank compared with others in the system, the state and the nation. (See the side bar for details.)

Take a look at the programs that would most interest or benefit your children. Is the local public school strong in those areas? If not, there may be good private-school alternatives in the vicinity.

Keep in mind that what you see on paper may not provide a complete picture of the school, its resources and the capabilities of its educational staff.

Identify The District

It’s easy to find out what public school district a house is in-the information is nearly always included in the MLS listing, available through your Realtor. Note, however, that school boards frequently re-draw districts. To help ensure a home is likely to remain in a particular district, you may want to find out how close it is to district lines-being central to a district increases your chances of staying there. Contact the local board of education to obtain a district map.

Go To The Source

Also ask the local board for any information available about the school system, special programs, etc. Many boards will provide you with standardized test scores, often broken down for each school and subject area. Private schools often provide test-score information and college-placement statistics as well.

See For Yourself

Make plans to visit the schools you are interested in. Schedule appointments with the principal and some of the teachers in your child’s grade. Inquire about school policies and procedures. Discuss your child’s strengths and weaknesses, asking how the school would handle them.

Interview The Neighbors

Perhaps the best way to investigate a school is to talk with parents whose children attend. Visit neighbors in the area and ask them to be candid about what they like and dislike about local schools.

Let Us Get You Started

We’ll be happy to provide the phone numbers and website addresses of the schools and districts in our area. Be aware, however, that complying with fair housing practices, we may not be able to provide you with all the information you seek. Discussing school quality can be construed as “steering” buyers to or away from particular neighborhoods, which could be viewed as discrimination-even if unintentional.

That being said, we’ll do everything we can to support your efforts to locate the right home and the right schools to meet your family’s needs.

If you’ve been looking at a HUD foreclosure and trying to decide if now is the time to make an offer this news from HUD might just help you decide.  HUD is offering an incentive on all HUD owned homes sold between December 8th and January 5th to owner occupants who purchase wiht an FHA insured loan.  Including in the "FHA Brings the Holidays Home" sales event are a $2500 home inprovement allowance and a minimum $100 down payment. 

Additional information can be found on HUD’s website.