Spooky Savannah Squares

Aren’t the squares downtown delicious day or NIGHT?  Savannah has been voted the most haunted city in the US.  I have no trouble believing it!

Will The Younger Generation Be Able to Afford a Home?

Many economists will not commit to announcing a housing recovery in the US.  It seems that for every positive indicator (supply of inventory, major market price appreciation, drop in foreclosures), there are negative indicators (rate increases, increased mortgage regulation, prospect of inflation) to balance the equation.  Realtors understand a theorem that ‘all real estate is local.’  While that’s true and recovery can often be neighborhood-specific, there are global forces at work that are more difficult to manage. 

I read an article this morning (http://www.housingwire.com/blogs/1-rewired/post/27895-globalization-could-be-stunting-the-housing-recovery) wherein the economist projects that the younger generation will be unable to afford purchasing a home.  His thesis is simple:  With median household income falling and the globalization of jobs (i.e., sending jobs outside the US), the future buyer's income will dry up.  Harsh?  

I have long held the opinion that the link between jobs and home purchasing is more important than what new regulation is coming down the line affecting mortgages. After all, people were still buying houses back in the day at 18% interest rates and have not stopped shopping more recently as credit became harder to find.  It’s not rocket science:  no job, no income, no savings, no down payment, no home.  I understand what the economist is trying to say.  Even if globalization is more focused on off-shoring lower paying manufacturing jobs, the entire economy is still affected.  

So, what's the answer?  People who have been sitting on the sidelines of politics need to get more involved.  This country needs jobs! I heard a report today that 1.5 MILLION more people are unemployed than this time last year.  I'm not sure how to correlate that to the government reports of declining unemployment rates.  Many say that folks are just giving up on looking for employment.  It's a confusing time.  However, one thing is certain.  The traditional "American Dream" has always included owning your own home.  It would be a travesty for the younger generation to miss out on that opportunity.

Savannah Cobblestones

When I was a little girl, my family told me that the ships that delivered cotton and other wares to the Savannah harbor back in the day used to unload their cobblestone ballast as well as their goods.  These cobblestones, in turn, were used to pave the river front, factor’s walk, and build up the bluff on which Savannah sits.  I made up stories about the people who delivered the cobblestones and where they might have originated.  While the cobblestoned areas are beautiful, they can also be treacherous if you don’t watch your step.  Likewise, my stories had more than a sample of pirates and ne’er do wells handling the stones.  The cobblestones have always maintained a mystique to me.

Historians guess that the cobblestones that pave Savannah’s waterfront area hale from the American northeast, Canada, the British Isles, Spain, Portugal, and Madeira.  I imagine an expert could trace the stone’s origin by its content.  It doesn’t really matter to me what the expert says.  The word itself simply signifies a rounded lump of stone, implying a large size, which has been rounded by the flow of water.  No matter what the true origin, I think I’ll stick with my childhood fantasy that assured me that the person who brought them to the ship to be used as ballast salvaged them from some stream bed in a magical forest.  Isn’t that more fun?

Hats off to our Veterans!

After WWI, President Woodrow Wilson established November 11th as Armistice Day.  It was a day to celebrate world peace and was a memorial for those military members who sacrificed their lives in WWI.  At the end of WWII, a veteran suggested that the focus of the day be changed to honor all veterans, not just those who gave their lives.  However, the change wasn’t made official until 1954, when the “Armistice” was replaced with “Veterans.”  Today, November 11th stands to celebrate ALL veterans who are serving or have served.  As a military town, Savannah GA could not be any prouder to take up this celebration.  We love our military!

Tips for Finding the Perfect Neighborhood

Savannah Buyers often express the opinion that finding the “perfect neighborhood” is more important than finding the “perfect house.”  After all, homes can be updated over time and be made to accommodate any needs the Buyer might have.  I agree.  The neighborhood chosen has a huge impact on lifestyle—safety, available amenities, and convenience all play their part.  In addition, Buyers want to live where there are individuals and families who have similar interests and would make good friends.

There are some simple points of evaluation a Buyer can address to assure that he/she narrows down the neighborhood options.

1. Make a list of the activities—movies, health club, sports, church—engaged in regularly and/or stores visited frequently. The first test is whether the neighborhood options would require too much travel time to maintain those activities. Certainly, Savannah is not so large that a person couldn’t get just about anywhere within 30 minutes.  However, our society is a convenience-oriented one.  Too much time in the car will become burdensome.
2. Check out the school district.  Even if a Buyer is single or without children, this is still an important element of the neighborhood search.  Buying a home is a significant investment.  Unless a Buyer is planning to stay put in a “forever” home, future resale potential has to be part of the equation.  Realtors are prohibited from advertising that a home is in a “great school district.”  However, there are several websites that can provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. These include:  http://www.gadoe.org/Curriculum-Instruction-and-Assessment/Assessment/Pages/CRCT-Statewide-Scores.aspx (where you can download school-specific test scores; and http://www.greatschools.org/search/search.page?search_type=0&q=Savannah&state=GA. If you have school-age children, also consider paying a visit to schools in the neighborhoods under consideration.
3. Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area? Again, this is a topic that Realtors are prohibited from discussing.  However, the information is readily available at: http://www.savannahga.gov/index.aspx?NID=1245.  This site lets you see summaries as well as interactive crime maps for specific neighborhoods or residential blocks anywhere in Chatham County.
4. Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months? This is definitely a characteristic for which a Realtor can provide both data and insight.
5. See if you’ll make money. A Realtor can provide information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment a home or neighborhood will be.   Likewise, the local planning agency also may be able to outline planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.
6. See for yourself. Once you’ve narrowed the focus to two or three neighborhoods, go there, and walk around. I always recommend checking out a neighborhood at different times of day as well as on the weekend.  Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to play with your family?

There are so many ways to take the anxiety out of the home buying process.  if you have questions about these steps or any others related to buying or selling, don’t hesitate to call me at 912-667-6533!

What Not to Overlook on a Final Walk-through

When Buyers enter the last week before closing on a new home, the level of excitement becomes apparent.  Making big changes in life, such as buying a home, are certainly cause for celebration.  However, in real estate, the deal’s not over till it’s over.  A very important step to address prior to closing is the final walk-through.  Almost all Buyers have a home inspection done early in the buying process.  Then, there’s as much as a 30 to 45 wait until the property closes and the Buyer gets the keys.  A lot can change in that time frame.  in addition, the Buyer may have negotiated a list of repairs.  As a result, the final walk-through is a critical piece of the process.
Typically, within 48 hours of closing, the Buyer and his/her Realtor should schedule the walk-through to be sure that:

• Repairs negotiated have been made. Sometimes these are easy to check.  For example, if a broken window pane was to be replaced, the repair will be obvious.  Other repairs, though, are not so easy to discern.  Therefore, it is important to obtain copies of paid bills and any related warranties that have been performed as part of the contract.  Not only does this provide documentation of exactly what work was done, but it also gives the Buyer a point of future contact for questions or additional work in the future.

• All items that were included in the sale price—draperies, lighting fixtures—are still there.  Items included in the sale are noted on the Seller’s Property Disclosure.  However, if the Seller utilizes a professional mover, mistakes can be made if communication is not clear.

• All appliances and systems (HVAC, water heater) are operating.  These are checked as part of a regular home inspection, but appliances can break with normal wear and tear.  It is also helpful to determine whether instruction booklets or existing warranties are on site.

• No plants or shrubs have been removed from the yard.  Normally, if a Seller wants to remove a plant for sentimental reasons, this is clearly stated in the disclosures.  Unfortunately, some Sellers don’t get to this level of detail and assume it won’t be a problem if they take “the rose bush that grandma gave me.”  Knowing about these changes prior to closing will enable the parties to the contract to address any issues.

• Garage door openers, other remotes, pool keys, etc. are available.  It is often helpful to have a checklist of those type of things to assure that the subject is addressed.  It is very easy for a Seller to drive away from a closing with the garage door opener still clipped to his car visor.

• All personal items of the Sellers and all debris have been removed.  Only a small fraction of Sellers leave items behind, but it does happen.  In addition, the Georgia contract stipulates that the Seller need only have the property “broom swept” clean unless the contract calls for professional cleaning.  After many years in the business, I can attest that one person’s definition of “clean” doesn’t always match another person’s.  If the outside trash cans are piled high with trash, it will be important to note the pick up schedule.  Often, city crews only pick up large items (too big for cans) once per month.

The final walk-through is an important process element that assures that any last minute fixes can be made before property transfer.  Doing the walk-through will also facilitate a happy and smooth closing environment on the big day.

Savannah Doors - #5

This Savannah door faces Wright Square in historic downtown Savannah.  It has graced the area for decades as the entrance to the Lutheran Church.