Thank you Father for the blessings you've given this day.
Help us to remember, Thou has shown us the way.
And give us strength to help those in need.
Never letting us forget, Thy merciful deeds.
Keep us in Thy tender loving care.
Save us, O Lord, when we are in despair!
Give us grace as we walk through life.
Inspire us to seek our brothers amid the strife.
Victory in Thee will be our guiding star.
In courage we march not caring how far.
Now we ask for the most important thing.
Grant us salvation to escape death's sting.
Copyright by Jim Smith
Tuesday, November 25, 2008
Friday, November 7, 2008
The Foreclosure Myth...
Now this might be a little longer than usual but well worth reading...
The hot topic today in real estate is foreclosures. The question is, are they a good deal and should I buy? First of all, the vast majority of foreclosures are happening in California, Florida and other high profile markets. The foreclosure market in Alabama is relatively benign, containing only a fraction of the foreclosures in the above mentioned markets. This is because Alabama did not experience the false appreciation created by speculators and sub prime lending. We were not overbuilt. Therefore, we are not over supplied. Our markets are still relatively in balance.
So, are they a good deal and should I buy a foreclosure? There are always good opportunities in the market, whether it is a foreclosure or a traditionally marketed property. Most foreclosures, however, are not the great deal they are portrayed. The reason being is the properties are being foreclosed because the purchasers of the properties are walking away from the mortgages. The issue is not that these people can’t afford their mortgage payment. Instead, it is that their property is not worth what they paid for it, due to false appreciation and overbuilding. Example: A purchaser in California pays $500,000 for a house and borrows $550,000, which is another story. Three years ago, the same home sold for $250,000 causing 100% appreciation in just three years. That is false appreciation and is unsustainable. Over the years, sustainable appreciation is typically 10% or less per year. That being the case, the $250,000 house bought three years ago would realistically be worth no more than $325,000 today or $175,000 less than the mortgage amount. Note: Quarterly appreciation in Alabama for the last 17 years has been between 1% and 9%.
What the above example means is with the property being worth $325,000 or less, the purchaser feels it is a better decision to walk away. This allows them to work towards restoring their credit rating in only 2 or 3 years instead of taking many years and paying interest before the principal is reduced to the actual value of the property. The banks foreclose on the false value, leaving the prospective foreclosure purchaser thinking they have a bargain at $400,000. In fact, they have just overpaid by at least $75,000. Condition can also be a major problem in foreclosed properties as they are typically gutted and abused, creating additional expense.
The fact of the matter is, if you are a real bargain hunter, you are probably better off looking for a home that was purchased 10 or more years ago. A home that was purchased a decade or so ago, will have significant and real equity. Assuming the sellers are motivated, (i.e. death, divorce, job transfer, etc.), they can sell at a discounted price and still accomplish the goals set when deciding to sell the property.
The bottom line is: Do not fall for the term foreclosure. More times than others, a foreclosure is not the deal you think it is. In fact, it is just the opposite. Whether shopping for a foreclosed property or not, as a professional I can help you make good decisions. I am able to do a market analysis on any property to determine if it is fairly priced or over priced. We can help you negotiate the price and terms and navigate you through the confusing mortgage market. Contrary to media reports, mortgage money is plentiful and interest rates are extremely low. I will make an appointment for you to meet with a reliable and honest in-house mortgage banker. He will give you professional advice in helping you choose the best loan for your needs. We are proud to say that ERA Mortgage did not participate in sub-prime lending.
Should you have any questions about foreclosures or real estate in general, please feel free to contact me at staceym@era-king.com
The hot topic today in real estate is foreclosures. The question is, are they a good deal and should I buy? First of all, the vast majority of foreclosures are happening in California, Florida and other high profile markets. The foreclosure market in Alabama is relatively benign, containing only a fraction of the foreclosures in the above mentioned markets. This is because Alabama did not experience the false appreciation created by speculators and sub prime lending. We were not overbuilt. Therefore, we are not over supplied. Our markets are still relatively in balance.
So, are they a good deal and should I buy a foreclosure? There are always good opportunities in the market, whether it is a foreclosure or a traditionally marketed property. Most foreclosures, however, are not the great deal they are portrayed. The reason being is the properties are being foreclosed because the purchasers of the properties are walking away from the mortgages. The issue is not that these people can’t afford their mortgage payment. Instead, it is that their property is not worth what they paid for it, due to false appreciation and overbuilding. Example: A purchaser in California pays $500,000 for a house and borrows $550,000, which is another story. Three years ago, the same home sold for $250,000 causing 100% appreciation in just three years. That is false appreciation and is unsustainable. Over the years, sustainable appreciation is typically 10% or less per year. That being the case, the $250,000 house bought three years ago would realistically be worth no more than $325,000 today or $175,000 less than the mortgage amount. Note: Quarterly appreciation in Alabama for the last 17 years has been between 1% and 9%.
What the above example means is with the property being worth $325,000 or less, the purchaser feels it is a better decision to walk away. This allows them to work towards restoring their credit rating in only 2 or 3 years instead of taking many years and paying interest before the principal is reduced to the actual value of the property. The banks foreclose on the false value, leaving the prospective foreclosure purchaser thinking they have a bargain at $400,000. In fact, they have just overpaid by at least $75,000. Condition can also be a major problem in foreclosed properties as they are typically gutted and abused, creating additional expense.
The fact of the matter is, if you are a real bargain hunter, you are probably better off looking for a home that was purchased 10 or more years ago. A home that was purchased a decade or so ago, will have significant and real equity. Assuming the sellers are motivated, (i.e. death, divorce, job transfer, etc.), they can sell at a discounted price and still accomplish the goals set when deciding to sell the property.
The bottom line is: Do not fall for the term foreclosure. More times than others, a foreclosure is not the deal you think it is. In fact, it is just the opposite. Whether shopping for a foreclosed property or not, as a professional I can help you make good decisions. I am able to do a market analysis on any property to determine if it is fairly priced or over priced. We can help you negotiate the price and terms and navigate you through the confusing mortgage market. Contrary to media reports, mortgage money is plentiful and interest rates are extremely low. I will make an appointment for you to meet with a reliable and honest in-house mortgage banker. He will give you professional advice in helping you choose the best loan for your needs. We are proud to say that ERA Mortgage did not participate in sub-prime lending.
Should you have any questions about foreclosures or real estate in general, please feel free to contact me at staceym@era-king.com
Thursday, October 30, 2008
Election Day Info..
Since most of the buzz right now is about November 4. I thought I would most some important information. Here are links to see Alabama Sample Ballots, be prepared as lines are going to be long this election.
For Calhoun County:
http://www.sos.state.al.us/downloads/election/2008/general/sampleballots/Calhoun-2008-Sample.pdf
To find your county's sample ballot go to:
http://www.sos.state.al.us/Elections/2008/2008SampleBallots.aspx
For Calhoun County:
http://www.sos.state.al.us/downloads/election/2008/general/sampleballots/Calhoun-2008-Sample.pdf
To find your county's sample ballot go to:
http://www.sos.state.al.us/Elections/2008/2008SampleBallots.aspx
Tuesday, October 14, 2008
A Balanced Market In Calhoun County
As several of us wonder what is going to happen the way this economy is, I still want to let you know that we have it a lot better than a lot of areas in the country where collateral has been overvalued, resulting in foreclosures. Right now, our market isn't necessarily good but it isn't bad.. We will call it balanced. We can say this in Calhoun County because there are few foreclosures and values are in line. We did not have false appreciation created by irresponsible lenders and developers. We have had sustainable appreciation between 1%-9% in the past 17 years. We also do not have the same issues that started the problems in California, Florida and other high profile markets. However, even though our market is in balance we will still have to weather the credit issues like everyone else. Our local banks are always making intelligent loans to deserving people.
As a side note, people are still buying and selling houses in our area. ERA King finished September at 86 sold units which brings us to 752 for the year!!!
What do you feel about the market?
As a side note, people are still buying and selling houses in our area. ERA King finished September at 86 sold units which brings us to 752 for the year!!!
What do you feel about the market?
Monday, October 6, 2008
Important Links For Calhoun County
Happy Monday!!
Below are links to websites that provide information whether you are a current resident of Calhoun County or if you are just relocating here. Hope this helps!
Calhoun County Chamber of Commerce
UTILITIES
Anniston Water Works and Sewer Board
Alabama Power
Alagasco
Cable
Directv
OFFICIAL CITY WEBSITES
City of Anniston
City of Oxford
City of Jacksonville
City of Piedmont
City of Weaver
LOCAL SCHOOLS
The Donoho School
Faith Christian School
Jacksonville City School System
Oxford City Schools
Piedmont City Schools
Anniston City Schools
Sacred Heart of Jesus Catholic School
Calhoun County Board of Education
Jacksonville State University
Gadsden State Community College
Below are links to websites that provide information whether you are a current resident of Calhoun County or if you are just relocating here. Hope this helps!
Calhoun County Chamber of Commerce
UTILITIES
Anniston Water Works and Sewer Board
Alabama Power
Alagasco
Cable
Directv
OFFICIAL CITY WEBSITES
City of Anniston
City of Oxford
City of Jacksonville
City of Piedmont
City of Weaver
LOCAL SCHOOLS
The Donoho School
Faith Christian School
Jacksonville City School System
Oxford City Schools
Piedmont City Schools
Anniston City Schools
Sacred Heart of Jesus Catholic School
Calhoun County Board of Education
Jacksonville State University
Gadsden State Community College
Thursday, October 2, 2008
How is the market doing?....
Welcome to my real estate blog! As a real estate professional in Southeast Alabama I would like to provide current clients, potential customers, and anyone who has asked the question, "I wonder how the market is doing?" information on what is actually going on with the market and weekly tips on home buying and selling. My goal is to post a new blog every week but in between if you have any thoughts, questions, or concerns about the real estate industry please feel free to email me at staceym@era-king.com or send a comment on the blog.
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