Chattanooga Real Estate Info

Monthly Market Report via Chattanooga Association of Realtors

2010-04-23T10:19:00.000-07:00

Buying an Investment Property

2010-03-16T09:51:00.001-07:00

What does it take to become a Real Estate investor? Lots of Money? Construction knowledge? WE BUY HOUSES signs to put on every street corner? Cash to buy a sweet deal at an auction? The answer to all of the above is NOT NECESSARILY.

While the days of stated income -which allowed anyone with a pulse to get a mortgage- are over, there are still opportunities to become an investor without having 20% down and years of experience. One of the best places to be right now, is as an apartment dweller/renter/living with parents, etc. SERIOUSLY! If you have a steady source of income (most likely in the form of a j-o-b), a modest savings (about 5% of the purchase price for Down Payment & closing costs), decent credit, an good idea of your budget, and plan to stay in your next home for at least 3 years-you're off to a great start. With the help of an agent with an investment mindset (I happen to know a great one) you can begin your career as an investor and have someone coach you along the way-FOR FREE!

What's the first step-- MAKE YOUR MOVE! One of the worst mistakes you can make is to wait until "we hit the bottom of the market." FYI, you only know when the market hits bottom by the fact that prices are now INCREASING-then you've missed the bottom. Prices are great right now, sellers are motivated, and the government is GIVING you money to get started (if you qualify). Also--waiting for interest rates to decrease or waiting to save 20% down while paying $800/mo ($4800/yr) in rent isn't the wisest idea for many people either.

Once you know you're ready to quit thinking and start doing, you should consider that an investment mindset can be entirely different from the average homeowner. Many homeowners buy a home that makes them happy and fits their needs. An investor buys a home thinking about the probability of profitability. Some things to consider are future values, current cash flow (or potential cash flow), future rents, current equity (or potential sweat equity). A qualified real estate professional can help you determine some of these facets.

For example, a duplex might not be appealing to the average home buyer, but if you're looking for investment potential, you can make sense of a home as seen in the following example:

Purchase Price- $75000
(Min) Down Payment-$2625, Loan Amount- $72375
at 5% interest on a 30 year note, your payments will be close to $388.52. (not including taxes and insurance-with an estimate of $1000 each, this brings payments to $555.19).

On this particular example, each 2bdrm/1bath unit currently rents for $550. If you live in one side, you can possibly get FHA financing (which allows the lower down payment) and the tax credit- and get $550 from your neighbor-bringing your monthly mortgage payment to.... $5.19!!!!! .

Then, after your minimum of 3 years (if you take the tax credit) of living here, you can decide to rent out your side, hire a management company if you would rather not be a landlord, and make 205% Return on your investment- NOT COUNTING THE $8000! -with a low risk asset and little work, you can be on your way to building a real estate portfolio.

If you prefer to live in a single family home, then you can do the same thing with a detached garage apartment, guest house, or basement apartment without sharing the same building.

This is just one example of how you can get started in Real Estate investments by taking advantage of today's opportunities. If you would like more information, or a FREE personal consultation to discuss your options. Contact me today at 423-521-0071 or info@carahicks.com.
Click here to search for available homes or for more info

Tax Credit Reminder from Jax

2010-02-25T18:09:00.000-08:00

Even Jax knows it's silly to miss out on up to $8000. Give me a call today, so you can find a great home before April 30th! 423-509-3769.

Best Buys

2010-02-23T13:23:00.000-08:00

Today's Best Buys

Thinking about Buying a Home. Read here to get started

2010-02-11T20:43:00.000-08:00

You're considering buying a home and you're ready to hit the roads and a house. While driving around can be a fun adventure, doing a little prep work beforehand can get you started off on the right path to getting the best home for your needs, and avoiding home-shopping burnout.

Buying a home can be a complicated process-even for repeat buyers. Many people don't realize that you can actually hire a personal assistant to walk you through the process for FREE. That's right, you can have someone that will answer your questions such as the ones listed below:

- Is renting or buying better for you?

- How much can you really afford?

- How to qualify for a mortgage.

- How much cash you should put down.

- What it takes to get approved for financing. What banks & other lending institutions are looking for.

- How much your payments will be.

-What current Tax Advantages and other incentives are available.

And any other question you may have...

As a Realtor, it's my job to simplify the process. I can assist you with the home buying preparation, and once we identify your ideal home needs, I can show you any house that is currently listed-no matter which company/Realtor has the house for sale.

Once we find the right house and you're ready to make an offer, I can help you prepare a fair offer & negotiate on your behalf and guide you through the closing process to make sure you get the most out of your experience.

Contact me today if you're thinking about buying now or in the future, have any questions, or if you would like to set up a free consultation.

Also, I'm never too busy for referrals. If you have friends, family, or coworkers that could use help buying, selling, or renting a home- I would love to have the opportunity to serve them.

Free Job Training-Green Designation Course

2010-02-08T13:54:00.000-08:00

Urban League of Greater Chattanooga is offering a new green construction and weatherization training that leads to the nationally recognized Green Advantage Certification.

At the completion of the 10-week program, participants will have three certifications: Lane Control & Flagging, OSHA 10 and Green Advantage. This can be valuable to individuals who have an interest in pursuing a career in green construction. More information about the Green Designation can be found here.

Limited space is available in the class. Applications must be received by Feb. 12th & will be subject to a selection process. Classes start Monday, February 15th & will be held in the evenings from 5:30-7:30p. Funding for the class is provided by the Government Economic Stimulus program, so there is no cost to attend.

Participants must be bondable and preference will go to individuals who are 18 or older and experiencing barriers to employment. Participants must have a high school diploma or GED.

Apply for the program in person at the Urban League of Greater Chattanooga, 730 M.L. King Blvd., Chattanooga, TN 37403. Call Julia Anderson at 756-1762 for information.

4 Reasons to Sell Your Chattanooga Home Now

2010-02-08T11:34:00.000-08:00

4 Reasons to Sell Now
Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

* Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.
* Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.
* Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.
* Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

Source: McClatchy Tribune, Kate Forgach (02/07/2010)
Click here to see original article-REALTOR® Magazine-Daily News-4 Reasons to Sell Now

2009 Cost vs. Value Report: REALTOR® Magazine

2010-01-21T19:37:00.000-08:00

Thinking about making some changes in your home? Take a look at this article and see what improvements provide the best bang for your buck. If you're making these improvements to prepare to sell, give me a call today and I can be your trusted Real Estate marketing advisor.

2009 Cost vs. Value Report: REALTOR® Magazine

New FHA Requirements: Party On! - US News and World Report

2010-01-21T05:47:00.001-08:00

New FHA Requirements: Party On! - US News and World Report

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KW- National Real Estate Info: Jan. 2010

2010-01-15T12:53:00.000-08:00

This Month in Real Estate
January 2010

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Commentary

December closed out the year with further indications of a budding recovery, illustrating we’ve come far from the pessimistic outlook this time last year. Soft home prices, affordable financing conditions as well as the government’s tax break targeted at the housing market have contributed to providing the much needed boost to the housing market. Solid gains in home sale activity helps to pare down inventory to a healthier level, which in turn will likely bring more stability to home prices.

The most recent Federal Reserve meeting indicated a more positive outlook about our economic condition as they pointed to plans to reel in emergency programs. Mortgage rates, which have hovered around 5 percent for most of 2009, are starting to climb again. Economists expect these unprecedented rates to go back up as Fed’s program to purchase mortgage-backed securities expires in March and private investors are demanding higher returns.

According to Nar 2009 President Charles McMillan, “Even with price declines in recent years, the typical home seller saw their equity increase 27 percent.” NAR’s most recent Home Buyers and Sellers survey reported that 87 percent of survey respondents consider their home a good investment, and more than half see it as a better investment than stocks. This indicates that Americans still see homeownership as a source of steady long-term wealth accumulation.

Employment will continue to be closely watched and steps on the road to recovery will likely continue to come one-by-one. Although concerns remain, many experts are hopeful of a brighter year in 2010.

The Housing Market

Existing Home Sales - Up 44% from last year

*

Existing home sales surged a record-breaking 44 percent from a year ago, the highest annual gain since NAR started tracking the data in 1999. The strong gain can be attributed to first-time buyers who accounted for 51 percent of all home sales, the highest on record dating back to 1981, as they rushed to beat the deadline for the first-time buyer tax credit that was due to expire November 30. The previous high was 44 percent in 1991. Sales activity is at the highest level since February 2007 when it reached 6.55 million.

Median Home Price - Very favorable

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Low home prices continue to add the extra boost to home sales. Existing-home price was $172,600 in November, 5 percent higher from its low in January. While still 4.3 percent down from a year ago, it is the smallest decline in two years. Distressed properties, which accounted for 33 percent of all transactions in November, continue to hold down the median home price, as they typically sell for 15 to 20 percent less than traditional homes.

Inventory - Lowest level in almost 3 years

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The supply of homes is now at the lowest level in almost three years. The supply of existing homes for sale at the end of November declined 1.3 percent to 3.52 million, representing a 6.5-month supply at the current sales pace, down from a seven-month supply in October. Generally, a six-month supply is considered balanced. Compared to a year ago, there are now 15 percent fewer homes on the market.

Mortgage Rates – Inching Up

*

Mortgage rates have begun to inch back up as government support runs its course and interest rates rise. On December 24, the average 30-year fixed-rate mortgage was 5.05 percent, the first time it has gone above 5 percent since the end of October. According to Amy Crews Cutts, deputy chief economist at Freddie Mac, “Extraordinary resources have been put into keeping the rates down and supporting the mortgage market, and it’s hard to imagine that the rates can go much lower than they are.”

Affordability – Best since 1970s

*

Affordability continues to be at a record level thanks to unprecedented interest rates, low home prices, as well as the first-time buyer tax credit. So far this year, the home price-to-income ratio has fallen well below the historical average of 25 percent. The ratio now stands at 15 percent.

Sources: National Association of Realtors, Freddie Mac

Government Action

Residential Retrofit Program

Vice President Biden recently announced a program called “Recovery Through Retrofit.” In addition to creating energy performance labels, it will create national energy performance measures for existing homes.

It will provide the following:

1. 1. Access to home energy retrofit information
2. 2. Access to financing for retrofits
3. 3. Access to trained professionals to perform the retrofit

The goal of the imitative is to create more energy efficiency in homes to benefit the country’s energy consumption. Retrofits include but are not limited to energy efficient heating, cooling, and water systems, insulation, roofing, flooring, windows, and solar panels.

Source: National Association of Realtors

Cash for "Clunky" Appliances

In efforts to vamp up energy efficiency, the federal government is implementing a rebate program for appliances. People can swap in their old appliances for new energy-efficient ones, saving electricity and saving on monthly bills.

A 20-year-old fridge can use three times as much energy as a new Energy Star-approved fridge. The age of your appliances impact your actual savings, so check into it before purchasing.

Important things to know:

1. 1. Plans vary by state. Check out energysavers.gov for details.
2. 2. Buy before it ends. Like the car rebate program Cash for Clunkers, this program has a set amount of federal money allocated to it. Once the $300 million is gone, the program will likely end. It is expected to run out quickly.

Source: The Associated Press

Government Calls for Increased Lending by Banks

According to the FDIC, lending has fallen for five consecutive quarters – even though banks have become profitable again and have started to repay government loans. Banks lent $600 billion less from September 2008 to September 2009, representing a 7 percent decline. Banks site a lack of qualified borrowers as the primary reason and point to the trend of decreased borrowing during recessions.

The goals of banks and the government appear to be in line now with each bank representative talking about getting aggressive with small business lending over the next year. Goals for 2010 small business lending include $5 billion for Bank of America and $4 billion for Chase.

As banks continue to be profitable, they can be expected to use the proceeds to repay the government as well as increase their efforts to make good loans. Small business owners should expect an increase in the amount of loans available during 2010 compared to 2009. Holding true to the trend in 2009, a good credit score and steady employment will likely continue to be important conditions of obtaining a mortgage.

Sources: The Washington Post, FDIC

Topics For Buyers & Sellers

Energy Savers for Buyers to Keep an Eye Out For

1. 1. Begin with a right-sized home. If the home you buy is simply too large for you or your family’s needs or plans, you stand a good chance of wasting energy through excessive heating and cooling costs. If it’s too small, you’ll feel cramped and uncomfortable. It’s a big investment, so seek balance and buy it “right” from the outset.
2. 2. Purchase ENERGY STAR appliances such as your TV, dishwasher, washer and dyer, and microwave. And especially the refrigerator, as it alone contributes about 10 percent of the energy use in a home. Also, unplug electronics not in use or turn off power strips to avoid phantom charges.
3. 3. Install efficient lighting such as compact fluorescent (CLF) or LED bulbs in every fixture. Lighting accounts for about 6 percent of an energy bill each year.
4. 4. Get an energy audit and have tests performed to identify ways of improving your efficiency. You can always upgrade your heating, ventilation, and air conditioning (HVAC) system as well as your thermal envelope, which includes insulation, windows, and doors and the seals or weather-stripping around them. Visit energy.gov/energytips for more tips

Making Home Maintenance Routine

Home ownership has its wonderful benefits, and as one of the single biggest financial assets many people own, preparing, planning, and making home maintenance a routine are important.

Personal finance experts recommend setting aside at least 1 percent of your home price each year in a separate account for maintenance and repair costs.

Automatically deducting the funds from your paycheck or automatically transferring it between accounts each month can make this easy. Some years homeowners will have less than 1 percent in maintenance costs or repairs and some years they will have more. When something big and unexpected happens; for example it’s finally time to replace the roof; this will provide the financial cushion to take care of it and the peace of mind knowing one of their biggest assets is well taken care of.

Source: MSN Money

Contact me, Cara Hicks

your local real estate expert,

for information about what's going on in our area.

Winter Home Maintenance Solutions: Preventing Frozen Pipes

2010-01-12T09:26:00.000-08:00

Winter Problem Prevention: STEPS TO PREVENT FROZEN PIPES

Before freezing weather sets in:
Review your homeowners insurance policy to ensure you have adequate protection and appropriate coverages. Take an inventory of your personal property. Document this inventory with a videotape or photographs. Store the information, and any other important documents, in a safe deposit box.

* Make sure adult family members know how to shut off water and call a plumber if needed.
* Insulate pipes, especially those close to outside walls, in attics or crawl spaces where the chance of freezing is greatest. If you have an outside electrical water pump, don't forget to insulate it as well.
* Wrap pipes with heat tape.
* Seal leaks surrounding or near pipes.
* Remember to bring garden hoses in and turn off and drain water to outdoor spigots at the cutoff valve.
* If you have an outdoor pool or spa, check with the manufacturer on how to protect it from freezing.

During a cold spell:

* Keep heat at 55° F. or higher.
* Turn on both hot and cold faucets near outside walls to allow a small trickle of water to run during the night and, if seldom used, during extremely cold days as well.
* Keep sink cabinet doors open to allow more heat to circulate around pipes underneath, particularly if located near exterior walls.
* If you need to be away from home, leave the heat on or drain your water system before you go. Ask someone to check your house daily.

If your pipes freeze:

* Open all faucets.
* Remove insulation and wrap pipes in rags. If possible, pour hot water over pipes, starting where exposure to the cold is greatest. If that doesn't thaw them, call your plumber. Don't try to thaw pipes with an open flame of any kind.

If your pipes burst:

* Shut off the water immediately to prevent additional damage.
* Take proper precautions to avoid an electrical shock from being in or near standing water.
* Call your plumber.
* Take an inventory of any damaged property or possessions. Do not dispose of any items without the prior approval of your insurance adjuster.
* In the event of a loss, contact your Insurance claims office and a representative will assist you.

Updated Information On the Homebuyer Tax Credit

2010-01-12T09:21:00.000-08:00

Updated information on the Latest Homebuyer Tax credit.
While it's been a popular topic and a great opportunity, many folks have not yet taken advantage of the current tax credit to get FREE money just for buying a home. Fortunately, this past November the 2009 Homebuyer tax credit was extended and expanded, which means good news for those who were on the fence about buying a home.

While many of the terms of the tax credit have remained the same, the deadline to find a home has been extended to April 30, 2010 (property must be under contract by then, and closed by June 30, 2010). You can read more basic information about the tax credit program by clicking HERE. Also, many frequently asked questions have been addressed by the IRS and you can ready more by clicking HERE.

On top of the great deal for buyers, sellers now have an incentive to make a move as well. Sellers can receive up to $6500 for selling their primary residence and buying another home. So if you're on the fence about selling or have been trying unsuccessfully to do For Sale by Owner, give me a call so we can reduce your holding costs and sell your home in time to receive the credit!

While exclusions apply, many will benefit from this opportunity, but it won't last long! If you have further questions, feel free to contact me. I
f you or someone you know would like to reach the goal of homeownership or sell your home & take advantage of great interest rates and find a deal, call me today!

Tax Credit Info

2010-01-11T21:31:00.000-08:00

Here is a brief video to help explain the IRS tax creidt. For more info, visit
irs.gov/recovery.

How to Buy a Home: Intro

2009-11-13T20:10:00.000-08:00

In the last few months, I have had the pleasure of working with some wonderful homebuyers. From first time buyers just jumping into the world of homeownership, to repeat buyers that are making a move for possibly similar reasons, but have experiences-good and bad-of their prior real estate transactions.

One thing I love about my job is being able to guide my buyers through the process. Along the way, I get some very interesting questions, and I welcome even the tricky ones that challenge me to do additional research and get some answers. I also notice that while most people have had a real estate experience in one way or another (most of us live in houses, right?), many people are overwhelmed or have some misconceptions about the basic steps of buying a home.

No worries. That's what I'm here for. I love it when my super successful clients say "this is probably a dumb question, but what is preapproval?, earnest money?, contingency?, shortsale?, etc." On the contrary, I think those are very important questions, and while I couldn't tell you anything about civil engineering, tax codes, how a car works, or what a PPO is, I do know Real Estate- that's what I've been educated to help you with. So you worry about what's important to you, and I can help you find a home to spend time doing what's important.

Anyhow, over the next few weeks, I will share a brief guide on how to begin the buying process. While there will be helpful information, I reserve actual consultation for my clients. Which leads in to my first article...What is a buyer's agent/representative? See part one for more info!

Get More information about Chattanooga Real Estate

2009-10-26T19:06:00.001-07:00

http://tinyurl.com/ContactCara

This Month in Real Estate- October 2009

2009-10-12T20:21:00.000-07:00

Featuring valuable information from Keller Williams on Foreclosure/Short Sale properties and today's economy.

This Month in Real Estate- September

2009-10-12T17:22:00.000-07:00

A little behind with last month's post, but this video has some great information, especially for first time buyers. For more information, please check out my website at www.carahicks.com or contact me at 423-521-0071 or info@carahicks.com.

National Coverage of Chattanooga; just one of the Reasons I love this city!

2009-09-03T09:20:00.001-07:00

Check this video out -- Revitalizing Chattanooga's Riverfront http://www.youtube.com/watch?v=DeSzySw-czg

Home Buyer Workshop

2009-08-20T09:18:00.001-07:00

HOME BUYER WORKSHOP-UPDATE

2009-08-19T13:47:00.000-07:00

I hope you will be able to make it to the workshop next Tuesday. We've just confirmed three additional speakers for the event:

Greg DeMars-Mortgage Pro with First Tennessee Home Loans. He will speak about how to get mortgage ready and what products are currently available.

Linda Sartain with Chattanooga Neighborhood Enterprise- She will talk about grants and low-interest loan programs available for purchases in the City of Chattanooga, and additional courses to help you get equipped to buy or to BUILD YOUR CREDIT/SAVINGS to buy in the future.

Home Solutions Representative- Will speak about $0 or Low money down purchase options, and how to use your tax credit at closing with owner financing.

This meeting will be condensed, but very informative and can give you tips that can help you establish a solid future through homeownership. Please RSVP if you will make it by this Saturday, August 22 to info@carahicks.com. More info also available at chattanoogarealestateinfo.blogspot.com.

First Time Homebuyer Workshop

2009-07-31T16:30:00.000-07:00

Come learn about how you can be on your way to homeownership. Even if you're not 100% sure than you are ready to buy, or if you think you can't qualify, give me a call and let's talk more. As an Realtor, my job is to help you navigate through the process of defining your needs and achieving your goal of homeownership. With Home Solutions, my role is to help people in ALL situations establish a starting point and structure a plan to help even the seemingly most difficult Real Estate situation become possible-even if it's starting with a long-term plan. Call me at 423-521-0071 for more info or to RSVP. Space is limited, so contact me today! www.carahicks.com

Now is the Time to Invest in your Future.

2009-07-17T20:54:00.001-07:00

Investing in real estate can be easier than you think. Simply buying right-at or below value- can be a successful way to invest. Shelter is a primary need for all of us, but it can also be a wealth building vehicle. I'm not talking about flipping houses or buying houses at the auction steps (you have to have all cash for that). You can start by simply timing the market (HINT HINT- now is the bottom, or super close). Buying now can build instant equity, and is more possible than you think.

Some financial experts have stated that your home should not be your only investment. I see some truth in that statement; however, as a young professional, just beginning your working life, you may not have loads of money in stocks, gold bars stacked up in your closet, or a sizable savings. Your new career may offer you benefits that can suppliment your retirement one day, but the balance in the account is probably not something to bank on. What you do have-right now- is opportunity.

Right now, the government is PAYING you to buy a homes. That's right, up to $8000. Also, your less than desirable start up salary can actually be a good thing. Local community agencies offer sweet incentives for home buyers that qualify for a first mortgage, but may not have closing costs. One such local incentive can come in the form of a $20,000 second mortgage that can pay closing costs and touts a 2% interest rate to boot. What does this mean to you? It means that here in Chattanooga, buying can possibly be cheaper than renting, and the savings acquire can be used to pay down your principal balance (The amount of your loan without interest), creating equity.

If you're still on the fence, maybe you're thinking that prices will continue to drop. They may, but you won't know it until they rise again. Another factor that is sure to make a difference is the cost of credit. On top of tax credits and incentives, interest rates are still at all time lows. Just a couple of years ago, the average interest rate was 7.5%. That means a $150,000 house payment was around $1048.82. That same house can be bought for $851.68/mo with a 5.5% rate. That's almost $2400 per year that you save.

So what are you waiting for? Prices are great, (isn't that a perfect sign to invest-buy low?), there are plenty of options on the market, and the government and banks are practically giving money away to homebuyers. If you plan to stay in your community for the next three years, you have steady income, and you're ready to lay the foundation for your future through smart real estate purchase(s), then speak with a Real Estate professional that can show you how to buy smart and secure a safe investment for your future. (You can sell later or rent for long term wealth potential). While your landlord loves you paying their mortgage payment, I think you should talk with a Realtor who can help you take a look at your situation and see if buying is a good option for you.

Cara Ables Hicks, Realtor
Keller Williams Downtown Chattanooga
706-614-1687.

This Month in Real Estate

2009-07-12T18:41:00.000-07:00

Don't restrict owner Financing

2009-06-11T21:00:00.000-07:00

In today's Real Estate market, buying a house can be difficult. Maybe you're wanting to move up and get a bigger house for your growing family, but your current house won't sell. Just rent it right? Unless you have a sizable amount of equity or a large amount of capital, then you may have incredible difficulty getting a loan without selling your current home. An option that is perfect for this situation is OWNER FINANCING! You find a house you like, and the owner agrees to carry the note, and life is good right? What if you suffered a foreclosure or bankruptcy due to overwhelming health bills- Our company analyzes your situation, and if you are back on your feet with a steady income and can afford the monthly payments (which are very close to rent), then we'll take a chance on financing the home for you. Why? Because we are local, we have a relationship with our clients. We go through a longer than normal qualifying period and we set relationships up for success with long term goals and requirements that are achievable. Why do I tell you all of this? Because the government is threatening to take this right away from us (and YOU too if you find yourself in a position to sell creatively to keep a house from sitting on the market)

Contact me today for more information on this bill!