Marketing Gone Wrong?

I have to admit.  I love clever marketing.  However, I had to scratch my head when I pulled up next to this truck today in my travels.  They had to really step out on a limb to adapt memorable dialogue from a long ago TV series.  Would this encourage you to give them a call?  Or to simply “flush” the idea from your mind?

5 Factors That Decide Your Credit Score

in recent years, the economy and job fluctuations have challenged consumers.  The real estate market has recorded epic numbers of short sales and foreclosures.  Thankfully, the market in and around Savannah, GA, has rebounded and many consumers are readying themselves to purchase real estate.  A foundational consideration is the potential Buyer’s credit score.  Credit scores range between 200 and 800. Scores above 620 are considered desirable for obtaining a mortgage. Certainly, the higher the score, the more likely a buyer will receive better rates or fees from the lender.

These factors will affect your score:

1. Your payment history. Basically, a lender wants proof that you paid credit card obligations on time. This gives them confidence that you will also pay your mortgage on time.  Buyers are often unaware that having a “late” payment on a credit report can rule them out of getting a mortgage.  Your payment history must be squeaky clean for 12 months prior to getting through the mortgage underwriting process.
2. How much you owe. Owing a great deal of money on numerous accounts can indicate that you are overextended.  No matter how much a lender wants to work with you, he/she cannot move forward on approving a mortgage unless you meet the test of having the right ratio (percentage) of income to expenses. 
3. The length of your credit history. In general, the longer the better.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay promptly. If you are planning on buying a home in coming months, think twice before opening any new accounts.  When considering buying a home, a Buyer will be told by both the lender and the Realtor that it’s a sin to establish new credit during the process.  In fact, I often tell my Buyers, “Don’t spend any money on anything other than food and gas!”
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit—installment loans, credit cards, and a current mortgage, for example. This can sometimes be a challenge for first time Buyers.  Occasionally, the type of credit you might have is unplanned, such as major medical expenses.  More often, however, Buyers simply don’t keep track of accounts, letting some go dormant.

For more on evaluating and understanding your credit score, go to http://www.myfico.com.  For more specific information, you might consider calling a lender to have them review your credit score and report and consult with you on ways to strengthen or protect your score during the buying process.  Call me for a referral to a superior local Savannah lender.

Savannah Doors–#4

Isn’t this inviting?  Can anyone guess this door’s location?

Skidaway Marine Science Day

On October 26th, The University of Georgia Skidaway Institute of Oceanography hosted a free marine science day.  The community was invited to tour the aquarium, research labs, science vessels, and the enjoy exhibits and special events like a reptile show and fish feeding.

The aquarium is small, but has an interesting variety of aquatic life.  The reptile show lasted over an hour and was a standing room only event.  The instructor had a lively question and answer delivery throughout his presentation.  It was amazing to hear how much the children knew.  After the show and tell, guests were invited to come touch or get a closer look at the reptiles.


Stations were set up for games.  In addition, scientists had set up microscopes and exhibits outside so that visitors could view plankton under high power.  More interesting items awaited on the R/V Savannah, the Institute’s research vessel which travels as far north as the Chesapeake Bay and as far south as Curacao. 


All in all, it was a great time.  Kids could crab off the dock.  Families learned about conservation.  And, of course, the weather was fabulous for walking the Institute grounds and learning about the great work they do there.

8 Steps to Getting Your Finances in Order

People who want to buy a home typically set that goal months before contacting a Realtor for assistance.  During that time, the potential home buyer focuses on preparation items, spending the majority of time on getting finances in order.  Following are eight simple steps that will assure that a buyer is ready to proceed in identifying home options.

1. Develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent.   If you haven’t experienced the unexpected, use a “reserve” factor.  Followers of the Dave Ramsey financial plans work to have at least a $1000 emergency fund to handle these types of items.
2. Reduce your debt. Generally speaking, lenders look for a total debt load of no more than 36 percent of income. Since this figure includes your mortgage, which typically ranges between 25 percent and 28 percent of income, you need to get the rest of installment debt—car loans, student loans, revolving balances on credit cards—down to between 8 percent and 10 percent of your total income.   Buyers sometimes thinks that closing all accounts will be in their best interest.  That’s not always the case.  Talking to a lender will help outline the most appropriate path to both debt reduction and maintenance of accounts.  For the best results, list accounts from smallest to largest and work on paying off the smallest accounts first.
3. Get a handle on expenses. You probably know how much you spend on rent and utilities, but little expenses add up. Try writing down everything you spend for one month. Documenting all expenses is like taking stock of your daily calorie intake.  There are always items you overlook.  Be disciplined.  You’ll probably see some great ways to save.
4. Increase your income. It may be necessary to take on a second, part-time job to get your income at a high-enough level to qualify for the home you want. If your income is already sufficient for the price range of your choice, consider the part-time job as a way to enlarge your down payment.
5. Save for a down payment. Although it’s possible to get a mortgage with as little as 3.5% of the purchase price down—or even less for VA or USDA loans—you can usually get a better rate and a lower overall cost if you put down more. The ideal is a 20 percent down payment, so that you can avoid paying a mortgage insurance premium.
6. Create a house fund. Don’t just plan on saving “whatever’s left” of your monthly budget toward a down payment. Instead, decide on a certain amount per month you want to save, then put it away as you pay your monthly bills.   Even if you already have your down payment well in hand, or a family member intends to provide you a gift, the house fund will enable you to handle expenses such as moving, getting set up in the new home with basics like blinds or curtains, with the least amount of anxiety.
7. Keep your job. While you don’t need to be in the same job forever to qualify, having a job for less than two years may mean you have to pay a higher interest rate. When considering buying a home, it is never a good idea to change jobs (unless, of course, the home purchase is related to a job relocation).
8. Establish a good credit history. For first time home buyers, there’s always a possibility that a credit history is non-existent.  Again, before getting a random credit card, talk this over with a lender.  With or without credit cards, it will be essential to make payments on any existing accounts by the due date. A “late” payment can prohibit being approved for a mortgage.

If you have other questions about preparing for a home purchase, don’t hesitate to give me a call!

Savannah Doors–#3

Welcome to the Mansion…700 Drayton Street!

How Do You Know It’s Time to Buy?

Have you looked at all of the current events & news reports on housing and wondered: How Can I Know It’s Time to Buy?  Well, that is a question often posed by home Buyers.  My answer is typically, “Now is the time to buy!”  I don’t say that because I’m a Realtor and need a commission.  There’s actually a set of economic indicators that can help buyers get off the fence and commit to a real estate purchase.  Listed below are a few simple “math” scenarios I put together that should help Buyers understand today’s timing:

(Economic Reports Showing that it is 35% Cheaper to Buy Versus Rent) + (US Midwest & South Best Affordability Index) = 

Time to Maximize Your Budget

(Decline in Foreclosures & Short Sales) + (Rise in Home Prices) = 

Buy Now for More House for the Money

(Rise in Home Prices) + (Reduced Inventory) = 

Future Drops in Affordability & Loss of Buyer Negotiation Strength & Fewer Home Options

(Consistent Positive Jobs Reports) + (Fed Tapering) = 

Looming Rise in Mortgage Rates

(Job Recovery) + (Advantages of Leaving Mom’s Basement) = 

Rise in First Time Home Buyers

All of these indicators are in play right now, with one exception.  The Fed has not moved forward with “tapering.” However, this action is expected by Spring of 2014.  Watch the news reports and see for yourself.  If you need more information about home buying and what is available to meet your needs and timetable, please give me a call.

Great Ogeechee Seafood Festival 2013

Have a hankering for gator or shark bites?  Fried shrimp?  Hush puppies?  Carnival rides? Crafts?  Entertainment?  Well, look no further!  This weekend has been a feast for the eyes and the stomach as Richmond Hill hosted its annual Great Ogeechee Seafood Festival in Gregory Park.  There was truly something for everyone.  Each year the festival seems to draw more and more folks.  Different bands performed each night, with Collective Soul filling the Saturday night slot.  I went on Friday night and enjoyed Georgia Fire, a southern rock band.



A $20 bracelet entitled the wearer to unlimited rides that were equally designed for younger and older children.  The typical carnie type games were also available.



The weather was perfect.


And, when it was time to eat, the variety of options made it difficult to make a decision.  Ample seating was available under the pole barn.


Georgia Fire put on a fun show, with the crowd doing a little sing-a-long and dancing.

Be sure to put this event on your annual calendar.

Telfair Sketch Crawl

It’s always possible to find something to do in Savannah.  The Jepson Museum hosted another Family Free day today and invited all participants to join the Sketch Crawl.  The newest exhibit is “Spirit of Spain”  featuring the works of Robert Henri.  Henri is a celebrated Spanish portrait painter whose exhibited works included renderings of Spanish dancers, matadors, gypsies, musicians, as well as a couple of landscapes and some sketches.  The purpose of the Sketch Crawl is to showcase that sketching is a way of developing visual literacy.  It helps in developing eye hand coordination and identification of patterns. 

Well, for me, the Sketch Crawl was all about noticing the details.  Certainly, no one could call me an artist.  I might be a half a bubble above stick figures and the last drawings I did probably had something to do with one of my children’s elementary school projects almost two decades ago.  However, I was game and wanted to give it a shot.  Instead of copying the portraits, I just honed in on a couple of details.  The time flew and I enjoyed the exhibit much more for having to look carefully.  Here are some excerpts from my little sketch book the museum provided.  No autographs, please!!

Savannah Doors - #2

A band of horses, dashing down Congress Street.

3 Step Approach to Selecting the Right Property

As real estate markets expand and contract, Buyers adopt different characteristics.  For example, in the three years following the bursting of the real estate “bubble,” the supply of homes (inventory) on the market was very high.  Instead of seeing the top 5-6 homes matching their needs & wants criteria, Buyers wanted to see as many homes as possible.  This approach reflected an “I don’t want to miss anything” mentality.  In addition, with so many homes available, Buyers tended to lack a sense of urgency and believed that the home they were considering would be available when they were ready to commit.  Unfortunately, Buyers learned that homes that are priced right based on market conditions will always sell quickly.  So, in many cases, the lack of urgency resulted in the loss of a great home option.

Today, in the Savannah real estate market, inventory is much tighter.  Homes are selling faster.  To capitalize on current market conditions, Buyers have to change the way they enter the home shopping process.  Specifically, Buyers should consider a proven “3 Step Approach” to selecting the right property, enabling them to act quickly when an opportunity arises.

Step 1.  Approach the home buying process objectively.  Yes, I know, buying a home is often more of an emotional decision than a financial decision for many potential homebuyers.  Objectivity is difficult to attain.  Nevertheless, there is no such thing as a “perfect home.”  I’ve worked with clients who built custom homes with significant input on design elements and, a year later, wished they had tweaked their own plans a little for this or that feature.  When a Buyers sits down with a Realtor and develops his/her needs & wants list, it is the Realtor’s challenge to seek and find homes that meet as many of the Buyer’s criteria as possible.  Success is generally declared if a Buyer can achieve 85% of the list, particularly if all the “needs” portion of the list are covered.  In any market, the good homes go quickly.  Buyer’s must accept that premise.  Doing so avoids a stall in the buying process driven by the “second guessing syndrome,” commonly referred to as Buyer’s Remorse.

Step 2.  After viewing each property, a Buyer should ask 3 important questions:

a.  What did I like about the property?
b.  What, if anything, would I want or need to change?
c.  If the price were right, could I see myself owning this property?  If yes, at what price?

I always encourage taking notes during a property showing.  This not only helps the Buyer focus on what he said he wanted, it also helps the Realtor gather helpful notes for feedback to the listing agent.  Further, if the properties viewed hit the Buyer’s needs & wants list, but the Buyer is answering “No” to considering the home as a viable option, the Realtor can then re-address the list and evaluate other key requirements the Buyer has not yet verbalized.  I often joke with clients that, at the end of every showing, I will ask, “Do you want to buy it?,” and then make them give reasons why the home does not work for their needs.  This process is helpful in continuing to clarify what the Buyer wants.

Step 3.  Remember you have 3 safety nets available.  The first is the Buyer’s judgment as an educated/informed Buyer.  One of the key purposes of the Buyer’s Orientation is to begin that educational process.  It may also include an orientation of what to expect in the desired neighborhoods, which helps a Buyer quickly grasp the value of a home during a showing in terms of its price and condition position within the neighborhood.  The second is the customized market analysis and review of public data that is done by the Realtor with the Buyer at the time of preparing the offer.  The data offers solid evidence of what terms are most appropriate for the transaction, helping the Buyer have a solid foundation of knowing that what is being offered is reasonable.  When data is insufficient due to lack of recent market activity, the Buyer has a third safety net available to gain security in the deal, i.e., the Appraisal Contingency.  Working with a good Realtor takes much of the insecurity out the process.

If you are considering a home purchase or would like to know more about the buying process, I’d be delighted to assist you.

Advantages of Using a Realtor

With the real estate market stabilizing somewhat, Sellers who are on the borderline between making a net profit or loss on a home sale are sometimes tempted to try to sell on their own.  These “For Sale by Owner” (FSBO) scenarios are filled with the potential for liability and financial risk.  Suppose a Seller is comfortable with these possibilities.  Is there any other reason to list a home with a Realtor?  The reason Sellers list a home with a real estate agent lies in the services the Realtor provides.  In effect, the Seller is buying the benefits of the Realtor’s contacts, experience and knowledge, all of which can make a home sell more quickly, possibly for more money and definitely with less trouble than by going it alone. When potential clients want to know what a Realtor brings to the transaction, I mention a few key characteristics that I bring to the table:

Knowledge.  Real estate agents have knowledge of the market that will help in pricing a home accurately. An overpriced home will sit while those around it sell. On the other hand, an under priced home may move quickly, but the Seller won’t get the profit they could have.  Striking a balance and maximizing the financial goals of the client is a skill that comes with both experience and a keen interest in market dynamics.  Moreover, experienced Realtors excel in process management.  The majority of what needs to occur in a real estate transaction is familiar territory to a Realtor.

Objectivity.  A good Realtor has training about how to market a home and can suggest changes that will make a home more appealing to Buyers. Some of these may be as simple as moving a chair to make a room more accessible. Others may be more time consuming clean-ups or repairs. Following an agent’s suggestions will result in a home being in tip-top shape and less likely to raise concerns in Buyers. Face it, a Buyer who notices one repair unmade will start looking for others. The Realtor is objective about the home and will see it with a fresh eye. Sellers may have lived with cracked porcelain or a missing doorknob so long that they don’t even notice. Objectivity also permits the real estate agent to respond rationally to any criticisms of the property that Buyers may make.

Contacts.  The majority of houses are bought and sold through real estate agents.  As a result, FSBO Sellers cut off a large number of the Buyers that Realtors have in the queue.  Even more important is the contact solicitation through exposure of the property.  A Realtor places the home in the MLS or Multiple Listing Service. Information about the home goes into a computer network that is instantly updated and, depending on the agent’s on line marketing focus, gets syndicated to potentially hundreds of other websites where Buyers search for homes.  Making the home easily findable and searchable on line is critical, since over 80% of home searches start on line.  Other sources of contacts include Relocation referrals, usually available only to real estate agents.  In addition, the Realtor’s brokerage virtual and/or physical caravans are another source of contact.  There are a plethora of other sources of contacts and leads accessed by Realtors that are not accessible to FSBOs.

Security.  A question that sometimes keeps Sellers up at night is this:  Just whom are you letting inside your home? Most people would not normally open the door to a total stranger and let them walk through their house, but that's what FSBOs do.  Even if the person looking at the home intends you no harm, he/she may not be a serious home shopper. Realtors pre-qualify customers as to price range and seriousness before committing to s will commit a lot of time spend with them.  Therefore, working with a Realtor ensures that few, if any, non-buyers enter the home.

Availability. A home listed with an agent is on the market all the time. Agents have cell phones and offices backing them up (and seem to work 24/7).  The lock box that agents use allows your home to be shown whether you are available or not.

These are just a few of the many attributes a Realtor brings to the table.  They build a foundation upon which all other tasks are laid and serve as valuable advantages in the real estate transaction.

Meet Florence Martus

One of Savannah’s legends is Florence Martus.  She is probably known more by her knickname, The Waving Girl, memorialized by sculptor Felix de Weldon.  Her monument faces the Savannah River from Morrell Park on the riverfront.  Martus was born in 1868 on Cockspur Island and was the daughter of one of Fort Pulaski’s sergeants. From the age of 19 until age 63, Florence served as the unofficial greeter for all ships that entered or left the port of Savannah.  For those 44 years, she waved her handkerchief by day or lantern by night to greet passing sailors and never missed a ship.
No one is sure why she decided to be the Waving Girl.   She lived were her brother on Elba Island, where he was the light keeper.  Life in her remote island cottage was lonely and Florence had a collie as her companion, who stood watch with her.  She died in February of 1943 and shortly thereafter, a 1943 Liberty ship SS Florence Martus was named in her honor.

Getting Yourself “In Shape” to be a First Time Homebuyer

Buying your first home can be one of the most exciting events in your life.  Certainly, it will likely to be the biggest purchase you have made up to that point.  Everything in the process will be fresh information and can often send the calmest individual running for the pharmacy.  However, being a first time homebuyer doesn’t have to be so stressful.  The first step is to have a buyer orientation session with the Realtor of your choice.  During that orientation, the following topics will be discussed so that you can get in shape for the process:
1.  Getting pre-qualified (or pre-approved) by a mortgage loan officer. 
2.  Reviewing the necessary funds for the transaction, including up front costs as well as what to expect at the closing table.
3.  Identifying sources of down payment funds.
4.  Outlining the “do’s and don’ts” of money management during the process.
5.  Drafting a preliminary negotiating strategy based on the buyer’s timetable & available funds.
6.  Completing a needs assessment of home features, neighborhoods, and amenities.
7.  Making a plan to transition from a lease to a purchased home.
8.  Evaluating an overview of the entire buying process and sample contract.
Taking these steps gets a buyer 90% of the way down the road to success, eliminating unnecessary bottlenecks and accompanying anxiety, and leaves the buyer ultimately free to enjoy the excitement inherent in owning a first home!  If you are thinking about making your first purchase, call me.  I’d be delighted to review these topics and answer any questions you might have.

Oktoberfest on Savannah River

The Rhinelanders

Chicken dance anyone?  Where else can you watch weiner dog races, children dressed up like weiners race, and dance like an idiot?  Well, on Savannah’s River Street, of course.  Today’s Oktoberfest activities were enjoyed under a glorious blue sky.  More is planned for tomorrow!  Be there!
   
     

Historic Savannah Details: Look Up!

No matter which block of downtown Savannah you walk, there are always surprises if you just look up!  Many of the historic buildings have design features that are sure to impress.  Here are a few of my favorites.