COBB COUNTY’S LUXURY MARKETING SPECIALIST, JUDY BALLARD

 www.judyballard.com

What Does The Economic Stimulus Package Mean To You?

Since passed by overwhelming Capitol Hill majorities in January, there has been much talk regarding the economic stimulus package. Yes, it will cost $168 billion, but what does it actually do for individuals?

The stimulus package is designed to help the country moderate the worst effects of a slowing economy and perhaps even avoid a recession. The idea is to encourage spending and with more spending to increase economic activity. While the theory looks good on paper, it will likely take months or years to know if it actually works.

From a personal perspective the January stimulus package has five major components that will immediately impact individuals with an interest in real estate.

1. Checks from Uncle Sam: According to the White House, taxpayers can receive rebates of up to $600 for individuals and $1,200 for couples. A minimum of $300 per person and $600 per couple will be available to those with at least $3,000 of earned income. This relief will be available to everyone with adjusted gross income less than $75,000 for singles and $150,000 for married couples filing jointly. The rebates will be phased out for taxpayers above those income thresholds.

2. Additional rebates will be mailed out for those with children. Everyone eligible for a rebate would also receive an additional $300 per child. For example, this would mean up to $1,800 of tax relief for an eligible couple with two children.

3. Reduced Income Taxes for Low-Income Wage Earners: The legislation says that 2008 taxes will be eliminated on the first $6,000 of taxable income for individual taxpayers and the first $12,000 of taxable income for couples. The tax rate used to be 10 percent on such income.

4. FHA mortgage loan limits will more than double in some cases. The usual limit in high-cost areas in the lower 48 states will rise from $362,790 to $729,750. Such financing allows buyer to purchase homes with 3 percent down.

5. Conventional loan limits will increase. The maximum size of a “conforming” loan will go from $417,000 to $729,750.

While the benefits for individuals look good, there are some caveats to consider.

First, those rebate checks are a one-time deal. While the government hopes that individuals will use the money for spending, many recipients will use the cash to pay down debts. Paying off bills can be a good use of your cash because it can mean lower monthly costs and better credit scores, thus lowering interest costs when you borrow to finance a home or car.

Second, if you want to buy or refinance with the new class of “conventional jumbo” mortgages, be aware that the FHA and conventional loan limits have only been raised for 2008. It’s possible that the old limits will be reinstated in January 2009, so if you want a larger mortgage start planning now.

Third, while the conventional loan limit applies nationwide, the maximum amount you can borrow under the FHA program varies by location. In other words, the biggest loans will not be available everywhere. For specifics regarding your area, please speak with a mortgage counselor.

Written by Peter G. Miller

COBB COUNTY’S LUXURY HOME SPECIALIST, JUDY BALLARD

WWW.JUDYBALLARD.COM

 MORTGAGE REAL ESTATE REPORT 

Mortgage Interest Rate Report

Last Updated: 2/4/2008

Mortgage Rate News

The end of the year brought with it another decline in the national average commitment rate for a 30-year, fixed-rate, conventional mortgage. In December, the interest rate fell to 6.10 percent, down from November’s rate of 6.21 percent. The rate from a year earlier was 6.14, so the market is still offering better rates against the prior year.

Analysis

Historically low rates, dropping prices, so why isn’t everyone buying?

Another month, another drop in the numbers. Realtors and home sellers alike are wondering what they have to do to get a buyer around here! Unfortunately, the market seems to be at a standstill between buyers who just can’t get qualified and buyers who are afraid to make a purchase because numbers are sure to continue to drop.

And now, with all this talk about an upcoming recession, people are frozen in place, unsure of what to do next. Even still, in certain markets, like San Antonio and Sarasota, home sales seem to be doing better than others, so it’s not an all-encompassing problem.

Just as analysts had predicted, the consumer confidence level noticed a slight increase in the month of December to reach a level of 90.6. Experts are signaling this as a starting point and they expect the level of consumer confidence to slowly escalate through the winter and into spring. Forecasts are for an average level of 92.3 over the next few months.

In the month of December, the employment indicator signaled a huge decline in available jobs, much fewer than what were anticipated. With only 18,000 new jobs available, the threat of a recession looms ever larger. How this affects the consumer confidence level heading into the New Year remains to be seen.

Predictions

End of the year witnessed further declines in the national mortgage interest rate. Experts agree that the rate still hasn’t bottomed out and that further drops loom.

 

 

Judy Ballard, Cobb County’s Luxury Marketing Specialist

www.judyballard.com 

Are You Ready for Winter?

December is one of our favorite months of the year! We often associate this season with sharing, giving and being with friends and family. It’s often easy to overlook your home’s needs with so much going on. Here is a simple checklist of items that can save you money through the winter:

• Check for leaks and drafts around the house. Replace weather stripping and re-caulk around doors and windows. Drafty doors and windows will cool off the house and cost you money in heating bills.
• Inspect your attic’s insulation. Heat rises so adding good insulation can keep the heat from escaping.
• Check your heating system. Sometimes something as easy as replacing your filter or having simple maintenance done can save on heating costs.
• Consider changing from standard light bulbs to energy saving bulbs. Winter uses a lot of your electricity so even saving a little here and there will help.

Enjoy the holidays!

Cobb County’s Luxury Real Estate Specialist, Judy Ballard

www.judyballard.com 

Advice for Home Sellers!

Competition for qualified buyers is greater than it has been in years past, but there are still buyers out there who are willing, able, and interested in purchasing your home! If you are realistic about what it takes to sell in a buyers market — and you are willing to meet the buyer in today’s market — then success can be yours! Here are a few tips to make your home stand out from the crowd:

Pricing – Price your home realistically.  Remember, buyers are comparing your home against all others and are looking to stretch their dollar. By pricing your home to sell, you end up saving time and money in the long run by keeping your home from being shop-worn and overlooked.

Home Inspection – How does your home stack-up against new construction?  Pre-existing homes often require more effort to maintain.  By ordering a home inspection and fixing any known defects, buyers can be confident in what they’re buying.

Incentives – Buyers love incentives. With larger housing inventories, incentives can be the deciding factor between your home and the competition.  Consider offering a free home warranty, a carpet allowance, or assistance with closing costs.  Incentives don’t have to cost a lot to be attractive.

By offering value, you attract buyers and enhance your property’s desirability.  If you are thinking of selling your home, please contact us for a current market analysis and marketing consultation.  There is no obligation for these services

 

             www.judyballard.com 

 Markets Stable Nationally

According to the National Association of REALTORS® (NAR), sales of exisiting homes remained essentially unchanged through July. While increases were seen in the West and Northwest regions, these gains were offset by a decline in the Midwest. The overall national market for existing homes slowed 0.2 percent in July.  NAR still anticipates close to 5.75 million units to be sold in 2007.

Average Sales Price of Existing Homes by Region Date  U.S. Northeast Midwest South West 2004 $244,400 $273,600 $189,400 $215,600 $324,300 2005 266,600 297,000 203,800 231,700 363,800 2006 268,200 299,700 205,300 230,000 371,300             04/07 268,100 308,500 200,100 226,700 373,100 05/07 270,600 313,200 204,300 229,700 372,000 06/07r 276,500 318,900 210,600 237,500 375,200 07/07p 276,000 316,100 214,800 233,500 376,400 Statistics from the National Association of REALTORS®

The Wall Street Journal reported that the thirty year conventional, fixed rate mortgage was averaging 6.09% on August 31, which is down from 6.25% earlier in the month. NAR president Pat Combs explains that today’s buyer still has some great financing options available. “For buyers able to qualify for conventional financing, there are ample opportunities in the current market” she said. “Availability and pricing of conventional loans are reasonable, and FHA-insured mortgage applications have been rising as low- and moderate-income buyers seek alternatives to subprime loans. If buyers are in it for the long haul, now can be a good time to get into your home.”

July statistics for existing homes were mixed regionally. Sales for the Northeast region rose 1.0 percent, while the West region saw an increase of 1.8 percent. Existing home sales in the South remained unchanged from the previous month, whereas sales in the Midwest decreased 2.2 percent.

www.judyballard.com 

Rates Are Up, And So Are New Home Sales!

Home prices continue to normalize across the country while mortgage rates have increased slightly, according to recent reports by Freddie Mac and the National Association of REALTORS®.

The thirty year conventional, fixed rate mortgage has risen to a national average of 6.37 percent in late May, compared to 6.18 percent in April, and 6.51 percent in April 2006. Much of this increase has been attributed to the recent shake-up within the sub prime mortgage market. Although experts believe there may be more increases in store later this year, these historically low rates continue to support the housing market during the country’s recent cool down period.

Average Sales Price of Existing Homes by Region Date  U.S. Northeast Midwest South West 2004 $244,400 $273,600 $189,400 $215,600 $324,300 2005 266,600 297,000 203,800 231,700 363,800 2006 268,200 299,700 205,300 230,000 371,300 01/07 257,300 292,500 194,700 222,500 352,300 02/07 260,100 292,200 188,400 225,200 366,700 03/07 265,200 302,100 199,100 227,300 365,200 04/07 268,400 308,800 203,000 227,900 369,400 Statistics from the National Association of REALTORS®

Single family home sales declined 2.4 percent from March to April, while statistics for existing homes were mixed regionally. The market got an additional boost from new-home sales, which jumped over 16 percent in April, according to the Commerce Department. The market for new homes was particularly strong in the South, which showed a 27.8 percent increase in new home sales, followed by 8.5 percent in the West, and 3.8 percent in the Northeast. The Midwest was the one area where new home sales actually declined and showed a 4 percent drop during April.

    Existing Home Sales Up, New Home Sales Down

www.judyballard.com

According to a report published in March by The National Association of REALTORS®, the country saw a 3.9 percent month-over-month increase in sales of previously owned, existing homes.  The Northeast led all regions with a 14.2% rise in sales in February, while existing home sales increased 1.6% in the South and 3.9% in the Midwest.  Sales of existing homes remained unchanged in the West.   The national median home price dropped to $212,800, which is a 1.3% decline from a year earlier.

Sales of new homes fell for the second consecutive month according to a March report by The Commerce Department.  Sales of single-family homes fell 3.9 percent in February to a seasonally adjusted annual rate of 848,000 homes, which is the slowest rate in almost seven years. The decline follows another decline in January.  Prices also fell in February to a median new-home price of $250,000, down 0.3 percent from a year ago. The inventory of unsold homes reached 546,000 units.

Economists say the difference between new-home sales and existing-home sales could be explained by a number of factors. New home sales are calculated from contracts actually signed in February when the weather was cold, while existing home sales reflect purchase agreements signed in December and early January, when the weather was unseasonably warmer in most parts of the country. 

It’s almost that time again for Spring Cleaning!

www.judyballard.com – Judy Ballard Cobb County GA Luxury Real Estate Specialist 

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While it certainly seems easier to just bulldoze many homes and start over, a major clean-up makes most homes look fairly attractive and presentable. The idea is to get buyers to look at the home, without being distracted by clutter, smells, and other horrors. Unfortunately, that clutter and those smells are often unnoticed by sellers, so you have to make a specific list of things to do to make the task easier.

It’s time to spring-clean! It’s like a fresh start. It’s work the seller might have done anyway, should he ever get around to it. Sellers should focus on the fact that before they move to that bigger home or that snazzy home, they have to organize what to throw away and what to clean, just like anyone does while spring cleaning. And there are only three ways to do it: keep it, donate it or throw it away. Why not sell it? Conventional wisdom suggests that encouraging a seller to have a garage sale will appeal to their entrepreneurial side and need for cash. All it really does is give them something else to organize, which could still leave them with a lot of junk to donate, give away or throw away.

Here are some tips on how to get it done.

• Start with the new place in mind

If you are going to downsize, redecorate, or make other big changes, you will have a lot of stuff you don’t need or want anymore. This will help you organize items into your three useful categories: keep, donate, throw away. Ask yourself as you handle each item in your home from old clothing to tabletop nim-nims, do you really picture that item in your new home? Is there a place for it? Isn’t the move a perfect excuse to get rid of Aunt Betsy’s cross-stitch sampler “Work Is A Virtue”?

• Eat an elephant a bite at a time

Start with your least favorite, or messiest room. Start with a list that you can go through systematically, like: tabletops, closets, under the bed. That way each one can be checked off with a satisfying flourish as you make progress. Clear all tabletops first, using your keep, donate or throw away rule. Next, clean out the closets, and so on. Throw away as you go along by actually taking bags of trash to the dumpster. That way you won’t be tempted to keep things that should be ditched. Nothing worse that guilt-jerking inanimate objects, anyway. Don’t you have enough relatives to do this?

• Ask yourself, “Do I want to pay someone $25 to move this?”

This question is enormous help when weighing sentimental items, or items you think you might need but don’t use very often. By the time movers calculate the number of floors they are moving you in and out of, the size of your rooms, weight of your furniture, and the number of boxes you’ll be packing away, $25 per item may not be that far off the mark. Little things add up to boxes and boxes add up to labor. You want to move as few boxes of belongings as comfortably possible. You’ll be surprised at how much you own that isn’t worth $25.

• Use the one-year rule to get rid of clutter

It’s hard to predict what you are going to need, but it’s very safe to assume that if you haven’t worn an article of clothing, or read that paperback in a year, that no harm will come to give it away or throw it out. Ignore Murphy’s other law that as soon as you throw it out, you’ll need it. Murphy will hit you with “what can go wrong, will go wrong,” anyway.

• Leave little or nothing on tabletops or counters

It may take some time, but you can get used to clean counter and tabletops. Train yourself to throw out junk mail and old newspapers and magazines. You’ll be surprised at how liberating it is.

• Pretend you’re a spy; no personal possessions to be left sitting out

The assassin from M.O.V.E. has found your lair – or did he? Leave no personal photos or mementoes sitting out, and he’ll never know. Personal possessions are a distraction for buyers. Don’t give them unnecessary information. Need to know basis, only, eh, Bond?

• Clean thoroughly

That means windows, doorways, and other cobweb traps, and you’re done. So how is it that make ready is like spring cleaning? They’re identical. The only difference is in make ready, you add repairs. When the repairs are done, the house is ready to present to the world. Sometimes all a seller needs is a plan and some encouragement along the way.  

JUDY BALLARD MARIETTA’S LUXURY REAL ESTATE SPECIALIST

www.judyballard.com – Judy Ballard Cobb County GA Luxury Real Estate Specialist

 

Tax Tips from The Judy Ballard Team 

1.      Check your settlement statement carefully for deductions.  For example, real estate taxes are prorated at closing.  Be sure to deduct the portion charged to you. 

2.      Real estate taxes are deducted in the year they are paid, regardless of the date they were assessed. 

3.      Interest on a home equity loan is deductible regardless of the use of the loan proceeds as long as the home equity indebtedness does not exceed the lesser of $100,000 ($50,000 in the case of a married person filing a separate return) OR the difference between the fair market value of your home and the outstanding balance on the loan treated as acquisition indebtedness. 

4.      Mortgage interest is also deductible on a qualifying second home.  A second home can be a house, apartment, condo, mobile home, houseboat, or travel trailer which contains sleeping, toilet, and cooking facilities. 

5.      Certain closing costs paid by the seller may be deductible by the buyer.  For example, points paid by the seller can be deducted by the buyer if the buyer reduces his cost basis in the home by the amount of the points.

 

Marietta’s Real Estate Luxury Specialist Judy Ballard

www.judyballard.com – Judy Ballard Cobb County GA Luxury Real Estate Specialist 

Our Clients say it Best. 

Judy,You have restored my faith that there can be successful, ethical, and generous agents and brokers in real estate.  It has been a refreshing experience to work with you and your office. J.M. 

Great people, great service. M.C. 

Judy Ballard’s Group provides a complete comprehensive marketing plan to promote and sell your home.  This is a team of highly motivated individuals that provide the right combination of service and support.  B.H. 

Your team was great.  The office staff was professional on every occasion. T.M. 

Judy and her staff are great!  When you look up “Customer Service” in the dictionary, their photos should be there. K.S.  You and your team did a great job.  I drop your name whenever possible!  Thanks. S.T. I highly recommend the team!  Thanks Judy. P.F. 

Thank again for everything.  You guys are the greatest. S.K. Your efforts succeeded where others failed! M.P. Thank you for your excellent service.  We have sold many homes over the year and our experience with Judy Ballard’s services surpass any in the past.  C.M. We had an excellent experience with the Judy Ballard Team.  I can’t imagine that there is a better real estate firm.  We certainly will recommend the Judy Ballard Team to anyone who might be in need of real estate services. P.L.