What should I Read? Mrs. Dunwoody's Excellent Instuctions for Homekeeping

This handy little reference book was a wedding gift (Thanks, Ms. Dembrowski!). Written by Miriam Lukken of LaGrange Georgia, it is full of timeless wisdom for keeping a clean, comfortable, and hospitable home. Do I practice all the advice in the book? Please. I don't even have time to take my own advice. But, I recommend it for anyone living on their own for the first time, or anyone who's parents were domestically challenged and therefore didn't pass on any wisdom of their own.

The book is full of both poetry and the nitty-gritty details of managing a household. One one page you'll see a recipe for homemade rat poison, on the next a poem by Shakespeare on the importance of sleep. But isn't that the reality of homekeeping? I only have to think of my own family Christmas celebration to know that this is true. Just moments before I embraced my octogenarian grandparents with Christmas joy, I was on the floor of my kitchen trying to keep the turkey grease from staining the grout. Yes. I washed my hands.

My favorite parts of the book have to do with hospitality: Change the sheets on your guest bed the day that your guests arrive, as our sense of smell is heightened in new environments. When your guests depart, wave until they are out of sight.

But I also love the little gems of practical wisdom scattered throughout the book: keep a safety pin near the kitchen sink so that when you take of your jewelry to do dishes you can pin them to your clothes. How brilliant is that?

A word of warning to my feminist friends, you might find this a little antiquated in terms of gender roles. But keep in mind that Mrs. Dunwoody, our narrator, is writing from the summer of 1866, so think of it more as a case study in southern hospitality, if that helps you enjoy it. Don't let that stop you from sharing it with a young man moving into his first apartment or dorm room. If he only reads the chapter entitled, "Miss Sallie Anne's Splendid Directions for Laundry," it will have been worth it.

This hard-cover book is available on Amazon for about $15.

Can I still decorate if my house is on the market?

Yes. Just be strategic. Here's a great article from Re/Max times about that very topic. If you're not sure whether or not you've gone too far, I'd be happy to come take a look. It is better for me to tell you that your Christmas Tree is blocking the flow from the entry way, than for another agent to tell me that her buyer thought your house was too small!

Selling During the Holidays: Go Easy on Decorations

Are your clients hoping there will be a Sold sign in their yard this holiday season? RE/MAX Northern Illinois Regional Director Jim Merrion and several Associates from his region offer thoughts on how to advise sellers against going overboard with holiday decorations.

"Layering on lots of holiday decorations inside and outside the house is one way to attract attention, but not necessarily the best way," Merrion says. "When it comes to holiday decor, restraint is the best approach. It's not that sellers shouldn't decorate for the holidays, but you don't want the seasonal touches to obscure the intrinsic appeal of the home."

The flip side of too much holiday decor, according to Merrion, is the impulse among some sellers to take their home off the market during the holidays because buyers are less active.

"It's true that fewer buyers are active during the months of November, December and January than at other times of the year, but those buyers who are in the market are usually quite serious about finding a home quickly," Merrion says. "Otherwise they, too, would be doing other things at this time year. Just a handful of showings during the holiday season can be more productive than a dozen showings in spring. Remember, it may take only one showing to generate a sales contract."

So what advice can Associates give sellers to improve the chances of offers landing in their holiday stockings?

1. Select and place the Christmas tree carefully so that it doesn't overwhelm the room.

"A tree that's too big for the room it's in really creates problems by making the whole house look small in comparison," says Paul Wells, Broker/Owner of RE/MAX of Barrington in Barrington, Ill. "If it's my listing, we spend time talking about the tree. I urge my sellers to make sure their tree fits comfortably in the room. A tree can look relatively small out at the Christmas tree lot, but then look huge when it's in a house."

2. Outside the house, use restrained yet festive exterior decorations to welcome visitors. An elegant wreath hung on the front door may be preferable to an inflatable snowman.

3. If you have traditional holiday decorations you want to display inside your home, think about putting away some of your non-holiday things so that rooms don't look cluttered. In the room where the tree is placed, consider removing some furniture rather than just rearranging it.

"It's really a matter of moving ahead and using your home as you normally would," said Louise Clark, Broker/Owner of RE/MAX Property Associates in Morrison, Ill. "Buyers understand that families live in the homes they visit - they make allowances for that - so sellers can have presents under the tree and lights in the yard. Still, the house needs to look neat, and you don't want the decorations to be a barrier that makes it difficult for buyers to get a good look at things, such as room dimensions, traffic patterns, window views and other important factors."

4. Use holiday decor to draw attention to the strongest features of the home. If there's a beautiful mantelpiece, use one or two eye-catching decorations to highlight it, but don't hide it under a layer of garland. Instead, use the garland to frame windows that offer an attractive view of the yard or the skyline.

5. Winter tends to be a dark time of year, so keep plenty of lights on inside the house when buyers are coming. Also, leave the drapes or blinds open, especially during daylight hours, so that the home seems as bright as possible.

6. Sharing a little holiday hospitality with buyers can be a good strategy, especially during an open house in December.

Michele Rossi of RE/MAX Accord in Bloomingdale, Ill., reports that at holiday open houses, "we roast almonds with a sugar cinnamon coating. The smell is intoxicating, not to mention that it tastes wonderful, too. We wrap the almonds in cheesecloth tied with a festive ribbon to give to buyers who stop in. We also offer a cup of hot wassail made with a great old recipe."

A final thought for sellers at this time of year, Merrion says, is to avoid making buyers feel like they're intruding.

"Even though the sellers are celebrating the holiday season, they need to convey the impression that they're serious about selling their home," he says. "They need to keep the front walk clear of ice and snow, and make sure the kitchen and baths look their best for showings. They probably won't see that many buyers this time of year, but those they do see are great prospects, so they must do their best to impress them."

What's Up With Mortgage Rates?

This came from David Osborne with Ashford Funding. I have worked with David before and can recommend him highly. Clearly he is staying ahead of the curve with the latest in the mortgage industry.

Fed Moves to Encourage Banks to Lend at 4.5% Interest Rates

Several news sources and the front page of the Wall Street journal today discussed the Treasury’s plan to spur the housing market byOffering low interest mortgages, possibly as low as 4.5% interest. Before we all go out and spread BAD information, here is what is known now:

• The proposal is still being discussed, and nothing has been finalized.
• The Wall St journal suggested, that even if this does happen, it probably won’t be until after Bush leaves office…Jan, Feb or later.
• The Wall St journal article said that the 4.5% rate would be for PURCHASES ONLY, not REFINANCES; the intent of the program is to spur NEW home sales.
• These loans would not be indexed with the 10 yr bond, but would be a special TBill offered to banks at a low rate, e.g. 3% in order to allow them to fund at 4.5%.
• I recommend to start shopping now, prequal them withtoday’s interest rates, and work with a lender that could float them down before closing if this does occur.

So, I know that my buyers are thinking, "I'm going to wait for this to happen to buy so that I can get a phenomenally low rate." But, keep in mind that if/when this happens, lots of like-minded buyers are going to come out of the woodwork. At that time the balance of power could shift to the bold home owners who are braving the market. It's never been more important to talk to a mortgage professional who has your file ready to go when you find the right home.

Let me know if you have any questions about this. If I can't answer your question, I'll put you in touch with one of my preferred lenders who are extemely knowledgeable of the market and offer excellent service.

Should I try to buy a foreclosure property?

This is the best Q and A I've seen on the highs and lows of buying bank-owned properties. This article appeared in The Georgia Real Estate Report, November 2008.

BUYING BANK-OWNED PROPERTIES PAINFULLY SLOW BUT POSSIBLY REWARDING

By John Adams

Last week we talked about the flood of bank-owned homes that have clogged up the residential resale market both nationally and locally. These "post-foreclosure" houses are the harvest of the exotic financing instruments and the loose lending guidelines of recent years.In many cases, the buyers intended to make the payments, but were overwhelmed by dramatic jumps in interest rates as their adjustable loans reset. Unable to pay the required sums monthly, these owners may have tried to sell. But with little or no equity in the homes, their efforts were to be in vain.

After a meaningless foreclosure auction where no investors even attended, these homes were deeded back to the lenders, who list them with local real estate professionals for sale. Banks call these houses REO properties, which stands for "real estate owned."

Yes, the savvy real estate buyer can pick up a bargain, but it's important to be cautious when shopping for these "bank-owned" homes.Here are some questions I am often asked:

Q: What's the difference between making an offer on a "bank-owned" house as opposed to a typical resale home? A: The primary difference involves recognizing the challenges of dealing with an institutional seller.For starters, a traditional seller would first get their house in clean, ready to sell condition. Only then would they open the doors to the public. Further more, most sellers expect a buyer to request a comprehensive inspection, and are not surprised when a buyer requests compensation for needed repairs.In contrast, banks expect to sell their REO properties "as-is," and they almost never agree to make repairs or put the property in any condition other than the way it is. The bank will likely grant your request for an inspection, but will almost certainly decline any request for improvements.

Q: Are all these REO houses in extremely poor condition? A: Some are in almost perfect condition, while others are completely unfit for human habitation.In addition to being poor sellers of real estate, banks have a bad habit of being poor property managers during their period of ownership.Because the house is vacant, it attracts vagrants and homeless people who move in and semi-occupy the house. In cold weather, these occupants may build fires in the fireplace to keep warm, and they sometimes break up kitchen cabinets to use as firewood.In addition, as time goes by, these homes often sink into much worse condition. Thieves steal copper pipes and copper wiring to sell for recycling, and air conditioning compressors disappear overnight. Even so, the banks hope to sell these homes "as-is."

Q: How do I go about making an offer on one of these houses? A: Here is the next hurdle. When looking at a typical resale house, you can expect the seller to respond to your written offer in hours. They may counter, but today's seller takes every offer seriously, hoping for an eventual meeting of the minds.Banks do things differently.When you submit a written offer to a bank, they frequently demand proof from your bank that you have sufficient funds on hand to close the transaction. This must be submitted before the bank will even look at your offer.Another frequent requirement is acceptance of multi-page addendums freeing the bank from any liability for the condition of the property involved.Even after all that, my experience is that most banks have trouble finding anyone with the actual authority to make a decision on selling the house. While some lenders are better than others, it is not unusual for offers to sit on the table for a week or more before someone at the bank gets around to responding.

Q: Any other pitfalls to watch out for when buying from lenders? A: First, know that this seller is unwilling to give you a General Warranty Deed for the property when you buy. They will insist on delivering title by Limited Warranty Deed, thus preventing you from involving the bank in future title problems. To remedy this shortcoming, it is especially important that you purchase the optional Owners Title Insurance policy from the closing attorney. Also, when selling REO houses, most lenders insist that you pay for settlement costs, and further require that the closing take place in the office of the seller's attorney. If you want legal representation (and you do), you will have to pay for your own attorney to review all your documents and advise you directly. In my opinion, that is money well spent.

Q: It would seem that the banks would be anxious to sell these properties, and would want to streamline the process, making it easy for buyers. Why all the roadblocks? A: Banks and lending institutions are heavily regulated, and have internal rules and regulations that must be followed. In addition, its part of a corporate culture permeating the world of banking. Banks just aren't set up to sell real estate. They protect our savings and process our checks and loan us the money we need most of the time, but marketing real estate is just not one of their strengths.

Q: What about buying government-owned houses from HUD? Is that any easier? A: Unfortunately, it's worse. The government has its own procedure for selling, involving a prioritized bid period during which only owner-occupants may bid. And even if you intend to live in the house, you must accept it in as-is condition.The bottom line in buying any foreclosed property is to make sure you protect yourself at every step, and have your attorney review all documents with you carefully before you sign anything.

What's the scoop?

There's a lot of weird information flying around! In the same day last week I read in Business Week that Atlanta is the 10th fastest selling market in the country, AND then in the AJC I saw that the average home in Atlanta is taking 8 months to sell. How do you weed out the truth and what it means for you?

First, be careful about any news that isn't directly related to sales of properties comparable to your home. National statistics, and even local statistics, can be completely innapropriate for your home's unique situation.

Second, call me. I promise to be honest about what your home will sell for, and what it will take to get your home sold. I don't want either of us wasting our time trying to sell it if we can't get what you want for it. On the other hand, there's is absolutely no way to tell what your home will sell for until I look at comparable home SALES.

Third, read this article from the cheif ecomomist for the National Association of Realtors. Is he biased? Probably. Realtor's are naturally optimistic people! But, there's a lot of truth here, even if he's looking for the silver lining. He's debunking 10 real estate myths, and each myth is followed by a tip from frontdoor.com.

Lawrence Yun, chief economist of the National Association of Realtors, debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you’re selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year — much less than historical average returns for the stock market. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It’s conceivable that taxpayers may have to cover some losses. It’s also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed’s activities influence mortgage rates but don’t directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range. TIP: Today’s rates don’t look bad compared to the 10% we saw in the early ’90s and 17% in the ’80s.

7. It’s the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It’s the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one’s interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner’s budget to see if you’re ready to buy a home.

9. It’s a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don’t have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

What's the problem?

Interesting article. Every lender I talk to says, "I can still make loans! Have your buyers call me!" So if you're thinking about real estate but don't think you can buy now, please let me put you in touch with one of my favorite lenders so you'll know for sure.


Survey Shows Consumers Still Believe Real Estate Is a Good Investment

RISMEDIA, Oct. 22, 2008-OptHomeTM, an online resource for empowering homeowners, buyers and sellers to make smart decisions for all their homeowner needs, released comparison findings from consumer confidence surveys, conducted during Q2 and Q3 2008, that indicate the majority of consumers still believe in the value of real estate as an investment.

Fielding several hundred responses by homeowners in mid-June 2008, one-third (74%) of all respondents said they felt real estate was still a good investment. Comparatively, even with the collapse of Wall Street and the economic crisis making headline news, when the same group of consumers was surveyed again this month, results remained unchanged.

With the nation teetering towards recession, one thing remains clear-consumers still hold a fundamental belief in the importance of home ownership and the American dream which cannot be dampened by the greed of Wall Street. What is at issue for the consumer are the logistics of how to make that happen in today’s economy.

The OptHome survey also revealed that 74% of all buyers and sellers believe the number one challenge facing a home buyer today is obtaining a mortgage, compared to 61% in June-indicating a correlation between the 13% slide in consumer confidence and the global financial crisis as it relates to home ownership. Conversely, 41% of consumers believe the biggest challenge facing a home seller today is setting a realistic price for their home, down from 53% in June — followed by a growing concern they will have to sell their home for less than they owe on their mortgage (25% vs. 21%).

“Consumers are starting to come to grips with the challenges they’re facing, but there are some very bright spots in the real estate industry” said Dave Sears, OptHome co-founder and chief strategist. “Thanks to the Housing Bill, there are incentives for first time buyers - including a sizeable tax credit. And mortgage rates are expected to remain low to help resuscitate the industry, making it a good time for financially sound consumers to take advantage of the market’s surplus and very affordable prices.”

For more information, visit www.opthome.com.

What's up with this tax credit?

Thanks to James Williamson of Fairfield Mortgage for this summary of the Tax Credit program for 1st time home buyers*. To get in touch with James, click on the Fairfield Mortgage link in the upper left hand corner of my blog.

Time Is Running Out on the $7500 Tax Credit Created as part of the Housing and Economic Recovery Act of 2008, the tax credit was enacted in July of this year to encourage home buying. It is only temporary. Retroactive to homes bought on or after April 9, 2008, the tax credit will expire in July, 2009. Here are the nuts and bolts you need to know about the credit:

How does it work?
The tax credit is actually a 15 year interest-free loan where the buyer will repay 1/15th of the loan each year via a tax credit against any Federal income taxes owed. Thus, with a $7500 limit, the maximum payment each year would be $500. The repayment begins two years after the credit is taken. Furthermore, if the homeowner sells the home during the 15 year period, he/she has to repay the balance of the loan from the profit of the home sale (if there is insufficient profit, then the remaining payback would be forgiven).

What's so great about a tax credit?
A tax credit is more valuable than a tax deduction, but most people don't know there's even a difference. A tax credit reduces the actual amount of tax due. A tax deduction only reduces the amount of taxable income. For example, if your client owed $3,000 in taxes for 2008, but qualified for the full $7,500 tax credit, it would cancel the entire amount he owes and still leave $4,500 which he would receive as a tax refund!

*Who qualifies for the tax credit? The credit is for first-time home buyers as well as anyone who hasn't owned a home in the past three years that can meet the income requirements. Single taxpayers can claim the full credit with incomes up to $75,000 and married couples up to $150,000. This credit is available for owner-occupied U.S. properties.

How much is the tax credit? The tax credit goes up to 10% of the purchase price of a new or existing home up to a limit of $7,500.

What's Wrong With My Carpet?

Mystery Solved! Bill Garwood, home inspector extraordinaire, writes a weekly article for the AJC. I get this question a lot when I'm helping home-owners get ready to sell. Thanks for clearing this up, Bill!

Ask the Inspector: Ghosting? It’s a dirty problem, but don’t let it spook you
Air circulation is culprit of mysterious carpet-stains.

By Bill Garwood

For the Atlanta Journal-Constitution

Sunday, September 21, 2008

If you have light-colored carpets in your home, you may have experienced dark areas along the baseboards or even under doors. Perhaps you have noticed dark spots on your bathroom ceiling above the vanity lights. You may have even noticed that there appear to be dark streaks on your walls or ceilings.

Don’t panic, these stains do not mean you are a poor housekeeper, although eliminating them may require a lifestyle change.

The stains are known as ghosting. For ghosting to occur there must be a source of dirt or soot in the house. In many cases the dirt or soot simply enters the house from outside.

Since most houses experience some imbalance of pressures between the interior and exterior, a negative interior pressure will naturally draw dirt into the house through windows, doors or any other crack in the envelope of the house. Dirt and soot can also be created by the occupants of a house. Cigarette smoking, burning candles or incense, and the pilot lights on gas burning appliances all produce a certain amount of soot.

The most common area of ghosting is on light-colored carpets. In this case, an imbalance of pressures between the interior and exterior of the house results in an imperceptible airflow through walls. The air carries some of the dirt and soot with it.

When the air passes into or out of the bottom of a wall, the carpet acts like a filter and catches the dirt and soot resulting in the dark areas. Imbalances or even poor design of a heating and cooling system can result in air pressure differences between rooms and the areas outside them.

When this pressure imbalance occurs, air passes under the doors and is captured by the carpet. Streaking on walls typically occurs on exterior walls and is a result of a difference in temperature between the wall studs and the spaces between the studs.

In winter the wood studs will tend to be colder than the insulated spaces between them. This minor difference in temperature allows some imperceptible condensation of water vapor along the stud. This condensed water vapor traps the soot and dirt particles, leaving relatively dark, dirty streaks on the wall.

In bathroom ceilings the cause of ghosting is a little simpler. The heated air from the lights over the sink rises and carries the dirt and soot in the air with it. The dirt and soot collect on the ceiling above the lights.

Cleaning tips

Ghosting can be difficult to get rid of. It may require replacement of carpets and/or repainting of walls and ceilings. For less severe ghosting on carpets, a professional deep cleaning of the stains using an enzyme-based powder has been somewhat successful.

The following is a list of things that a homeowner can do to help minimize or eliminate ghosting:

• Eliminate or reduce tobacco smoking in your house.
• Eliminate or reduce candle burning in the house.
• Have pilot lights on furnaces, water heaters and gas logs properly adjusted by a licensed heating and cooling contractor.
• Replace your furnace filters regularly. Every couple of months is advisable.
• Clean and vacuum regularly using a crevice tool to clean around baseboards.
• Check your vacuum cleaner. If it is not clean, it may produce more dirt than it collects.
• Have your heating duct system professionally inspected to ensure against leaks.
• Undercut doors to allow passage of more air under them.
• Properly weather-strip doors between the house and the garage.
• Pull back carpets and caulk the gap between the floor and the baseboards.
• Consider installing darker carpets that will show the ghosting less.

When is Electronics Recycling Day?

	2008 Fall Electronics Recycling Day Saturday, October 25 • 9 a.m.-1 p.m. Decatur High School Parking Lot (Corner of N. McDonough Street and Howard Avenue) TV's will be recycled for $10 cash only with exact change. Don't throw away that old cell phone, camera or PC component! Save it and recycle it on Saturday, October 25, 2008 at Decatur's Fall 2008 Electronics Recycling event. This semi-annual event has been hugely successful at diverting electronic equipment from landfills, where they may contaminatesoil and water. Batteries and Styrofoam will also be accepted. For the first time at this event, TV's will be recycled for a minimal fee of $10 cash only per TV set with exact change. There is no charge to recycle other items. The event takes place Saturday October 25, 2008 from 9am to 1pm at the Decatur High School Parking lot, on the corner of N. McDonough St. and W. Howard Avenue. Electronics dropped off that day will be sorted and disassembled into raw materials or cleaned for re use. The Decatur Waste Management Advisory Board investigates the recyclers involved to be sure the items are responsibly disassembled and not landfilled. In addition to electronics, any metro area resident can also drop off batteries of any type, Styrofoam peanuts, and clean Styrofoam blocks free of foreign objects. Volunteers assist in unloading items. To volunteer, please contact Scott Thompson at Scott.Thompson@Mindspring.com. Early drop offs are not possible. FOR ADDITIONAL INFORMATION CALL David Junger, (404) 377-5571 Electronic Equipment for Recycling: See updated list for items that will be accepted at the Fall 2008 Event Almost anything with an electrical cord can be recycled at the event EXCEPT microwave ovens. We will recycle for free: Desktop computers , Telephones, Mini-towers, Telephony equipment, Laptop computers, Adding machines,Monitors, Calculators, Servers, Typewriters, Workstations, Label makers,Keyboards, Copiers, Mice, Fax machines, Joystick game controllers, Answering machines, Printers, Printer cartridges, Digital cameras , Zip drives, Batteries, Speakers, PDAs, Pagers, VCRs, Hubs, DVD players, Routers, Cable converter boxes, Scanners, Remote controls, Digital projectors, Stereo equipment ,UPS units, Radios, Main frames, Portable CD players, Component parts, Portable game players, Cables, GPS receivers, 3-in-1 devices, printer/copier/fax machines., Electric lawn mowers and garden equipment, any kind of Battery. Clean Styrofoam free of foreign objects(peanuts, packing blocks, plates, cups, trays.) We will recycle television sets for $10 exact change.

I'm going to try to sell it myself. Any advice?

You bet I do! Why would I give you free advice to sell your home without me? I'm nice to a fault. That, plus, if you give it your very best shot and you still can't sell it on your own, you should call the agent who tried to help you out, don't you think?

Okay, quickly,

1. Don't just put a sign in the yard, get online - craigslist, AJC, Creative Loafing, etc.

2. Be ready to work with a buyer's agent. Go ahead and put in your ad that you'll pay a buyer's agent's commission, that's the best way to get serious buyers in the door.

3. Keep your ad short and sweet - no one is going to read about your wall paper, how big each closet is, or how great the schools are. They already know about the schools, I assure you. And if the hard numbers look right - # of beds, # of baths, and price - then they will probably want to see your house. Don't waste time or money on lots of words.

4. Act quickly - the market is changing so fast that even full time professionals have to work to keep up with things. If you don't have any serious lookers in the first 35 days, you need to re-think either your price or your willingness to work with an agent.

Should I try to sell on my own?

Maybe. I get so many questions about whether or not people should try to sell their home themselves. The most honest answer is, maybe. Since home values are down a bit from last year, seller's are hoping to make up the difference by not paying a real estate commission. I can see the logic in that. But, the other side of that coin is that you can't save the money if you can't sell the house. Here's a great response to that question from John Adams, who writes a weekly column in the AJC.

Selling your home 'by owner' can make sense — if you have time

By John Adams
Inside Advice
Published on: 07/15/07

Two weeks ago, we talked about why most home sellers are best served by working with a real estate professional. That doesn't mean you have to pay a full traditional commission. But it is a recognition that there's a lot of work to be done between putting up a "for sale" sign and sitting down at the closing table.

The reality is this: most sellers are not willing to take on all the necessary tasks required to complete a successful sale. Nor are they able to attract qualified buyers and keep them interested long enough to encourage a satisfactory offer in the first place.

However, if your circumstances are different, you might want to consider selling your home yourself:

• If you have sold homes yourself in the past and know what it takes to get the job done. I once sold a home in Dunwoody to a relocating IBM executive. He told me he would be transferred again within five years. I stayed in touch, hoping to get the listing when his next move occurred. Instead, I was disappointed when I saw a "for sale by owner" sign.

He told me that he had six months' notice on his move, and that he had sold four of his previous five homes, with considerable dollar savings each time. He already had a real estate attorney standing by to assist if needed, and he had plenty of time to test the waters.

I had to admit he was an experienced seller who stood a reasonable chance of saving more than $20,000 in commission dollars.

• If you live in a hot neighborhood and are in no hurry to sell. Smart homeowners keep up with homes that are "on the market" and "sold" in their neighborhood. For all you know, you have a neighbor who drives by your house twice each day and says to himself, "If that house ever comes on the market, I'm going to buy it, no matter what it costs!"

• If you don't mind taking on some or all of the work of marketing the house yourself, and have plenty of time to sell. Thirty years ago, there were full-service real estate agencies, and nothing else. Everybody pretty much charged the same commission, which was most often 7 percent of the selling price.

Today, things have changed. Full-service agencies still have an important role to play, but they are under increasing pressure to justify their commissions. And those commissions are, as often as not, negotiated to reflect the arrangement between the seller and the broker involved.

In addition, there are dozens of so-called "discount brokers" who offer a variety of services, ranging from staging your home for maximum visual appeal to holding open houses, if you wish. Most offer to include your home in the local multiple listing service. Most also include the ministerial function of filling out the contract forms and answering basic questions during negotiations with the buyer.

You may have noticed that in the three scenarios I mention, I have included the qualifier that you have plenty of time to sell. That's because the business of selling real estate "by owner" can take a long time. And you probably aren't going to get a full exposure to the largest possible pool of prospects unless and until you find a way to get your home listed in the local multiple listing service.

My advice is to attempt the "by owner" approach only if you have at least six months before you need to have your home sold and closed. That way, if you are successful, you will likely have saved some commission dollars. Most important, your home will be sold and closed.

If, on the other hand, you try it "by owner" and the house doesn't sell in two months, you will still have at least 120 days for a real estate professional to give it everything they've got, with all the marketing tools money can buy.

Where should I search for my new home?

There are a lot of search engines out there.  Some are better than others.  My new favorite for non-agents is www.frontdoor.com.  It's part of the HGTV empire, but that's not why I like.  It is fast, easy to navigate, uploads most of the available pictures, has maps of all the properties that you search for, and looks clean and streamlined.  I recommend it.  

How should I update my kitchen?

Cabinets Unhinged
By Marni Jameson

If I had to do it over (that line could open half my columns), I'd rethink my cabinet hardware. Until this past week, I hadn't given this hardware much thought. I liked my kitchen cabinets, which are only four years old. The drawers glide smoothly like Michelle Kwan, and the door hinges feel sturdy as firemen. But recently two events conspired to change my affections.

One, I visited my friend's new home, which she and her husband spent three years designing and building. A kitchen diva, Laurie cooks and entertains like an Oscar-party caterer, so I knew her kitchen would be, err, top drawer (sorry). Two, I received a preview of The New Yankee Workshop's nine-week kitchen makeover special, where the plaid-shirted Norm Abram, that carpenter who can build a log cabin out of an abandoned beaver dam, outfits a tired old kitchen with smart new cabinetry. Suddenly, my hardware seemed out of date, second rate and wholly inadequate, the way parents of college graduates feel.

When I get to Laurie's house, she's cooking dinner for her 16-year-old son and 24 of his friends. I pitch in to assemble five pans of vegetarian lasagna, two vats of Caesar salad, and three trays of garlic bread. As she dredges eggplant and stirs a gallon pot of bichamel (a word that in my recipe book means turn the page or order pizza), I snoop.

Her kitchen is enormous, but my obsession isn't with size, but with drawers. I pull one open, swoosh. It's fastidiously organized with compartments like a tackle box. I look it over.

"Where is it?" I ask.

"Where's what?" She must wonder why my head is under her drawer.

"The hardware." There's no drawer orthodontia cluttering the sides, waiting to catch crumbs and grease.

She shrugs. "Does the lasagna need more cheese?"

Then I meet the invisible hand. With a tap, the drawer slides to an inch of closing, then stops as if it hit a cotton ball. Just as I'm ready to push it again, a vacuum-like force sucks the drawer silently, firmly shut. I scream and jump back.

I holler to Laurie as if I'm the one who's discovered it: "Watch this!" I open a drawer and shut it, harder. It slows to a controlled stop, then swoosh, sucks closed. I need to tie a strap under my jaw to keep it from falling in the lasagna. "How does it know?"

"Uhh, when you're done, could you toss salad?"

When dinner's ready, the teenagers come through like locusts. Once they've gone, and we've cleaned up, Laurie offers coffee. "What kind do you want?" she asks.

"Whatever you're having."

"No, seriously, you can have whatever you want." She shows me her built-in Miele espresso machine. The appliance has cartridge slots for five kinds of coffee, ranging in octane levels from hair-on-your-chest strong to why-bother decaf. Pick your strength, and it brews espresso, latte or drip by the cup.

I shake my head. "Is this Jane Jetson's kitchen or yours?"

Laurie slides open a drawer built under the coffee maker. In it are not just mugs, warm mugs, because this isn't just a drawer; it's a mug warming drawer.

The longer I stay, the more unfaithful I feel toward my own comparatively modest kitchen. I was falling in love. That's the inevitable risk of home improvement. However up to date you make your kitchen, advancing technology sits on the verge making it as outdated as the wood-burning stove. Still, knowing that, if I had to do it over, I'd rethink the hardware, and I'd add that warming drawer.

I became even more smitten with high-tech kitchen gadgetry when I returned home and previewed The New Yankee Workshop kitchen series, airing this month and next on PBS. After watching it, I called Abram to uncover a few more secrets and trends:

• Design with your stuff in mind. Kitchen designers use several methods to customize kitchens. Using a string test, they tie a string to someone and trace her steps as she cooks. Then they design a cabinet plan that saves footsteps. The heap method involves putting all your kitchen stuff in a pile, and then designing cabinets to accommodate it, which beats making what you have fit given cabinets. Laurie took pictures of her kitchen supplies while they were in the cabinets of her former home, then made sure her new kitchen had a place for everything and more. The owner of the kitchen Abram was remodeling had 14-inch plates; standard upper cabinets are 12-inches deep. "Simple," Abram said. "We made the cabinet deeper."


• Don't skimp on the hardware. Typically, hardware comes rated for two kinds of loads: carrying ability and shock capacity. (Can your kid jump on it?) The higher the load the better. Both Laurie and Norm used hardware from Blum.


• Trade doors for drawers. Thanks to better hardware, cabinets with fixed shelves are giving way to cabinets with pullout shelves or drawers. Laurie's kitchen has upper cabinets, but for lower storage she has primarily drawers. She will never again rummage in the back of a cabinet for a pot.


• Bring dead corners to life. Corner cabinets often become black holes; things go in but never return. New cabinet designs fix that. Drawers have fronts built at a 90-degree angle that pull open to reveal full drawers. Doors open on elbow hinges, revealing shelves that turn like Lazy Susans.


• Replace don't retrofit. Putting new hardware on old cabinets is expensive, difficult and usually not worth it. "If you're ready to replace the hardware, you're getting close to the idea of new cabinets," said Abram.

Marni Jameson is a nationally syndicated columnist and author of "The House Always Wins" (Da Capo). You can learn more about her and her book - which can be a nice housewarming gift or a tool to show buyers some great ideas on turning a house that isn't quite right into perfect, at www.marnijameson.com.

How can I have less clutter in my life?

This is an article from REAL SIMPLE, one of my favorite magazines.  I'm not suggesting that all of these ideas should be used by everyone.  I won't be trying the last one, I'm happy with both my husband and my involvement in the Junior League of Dekalb County.  But, there are some nuggets of wisdom here that you might find helpful.  

Clear the Clutter from Your Life

Real Simple readers share inspired ideas for streamlining your day

Always Be Ready to Go

I installed a small key cabinet behind the front door. Keys are hung there when we come in and picked up when we go out. I also check the weather reports on Sunday, then set out and iron my entire week's wardrobe. Finally, I get everything ready for the next day the night before and place my briefcase or bag near the front door, ready to go.
Amy O’Donnell, Houston, Texas

Follow the Five-Minute Rule
No one can really save time, since we all get the same amount every day. However, I have found a way to reduce clutter on my desk at work. I call it the five-minute rule. If I can get it done in five minutes or less, I tend to take care of it then rather than place it in my in-basket to do later. This includes mailing that letter, marking a date, opening a room for someone, answering questions, filing one piece of paper, etc. By getting rid of the little things immediately, I can focus on the bigger projects, and the minute details of my job don't bog me down. 
Rebecca San, San Gabriel, California

Donate Household Stuff Weekly

At least once a week I find 10 things I can donate, give to friends, or throw away. I think better when I am not surrounded by clutter. Our whole family relaxes more when we are not in a pile of toys, newspapers, and magazines. It has taught us all to value a few good things rather than acquiring masses of objects that don't enhance our life. 
Megan Shachat, Seattle

Systemize Your Closet
I reorganized my clothes closet so that all outfits are grouped together. I am not a morning person, and I do not like standing around, naked and cold, trying to decide what to wear. I just grab the first outfit on the right side and put it on. At the end of the day, I hang the clothes up on the left side. This way, all my clothes are rotated, so I wear them all and never overwear my favorites. 
Susan Shellberg, Tampa

Streamline Wherever Possible

1. I have subscribed to a grocery-delivery service. 
2. I have hired a cleaning service. 
3. I go from the mailbox to the recycling bin and sort my mail right there — junk goes away immediately. 
4. I give each family member a mesh laundry bag for his or her socks. The socks get washed, dried, and returned in the bag. 
5. I set my coffeemaker on automatic so that it is ready when I get up. 
6. I listen to books on tape while I drive. 
7. I have a two-way pager so I can answer work questions on the fly. 
8. I pay all bills once a month. 
9. I go into the office by 7:00 A.M., so I can leave by 3:30 P.M. 

I get through a huge number of books that I otherwise would not have the time to read, and the two-way pager may sound like a leash, but it has given me greater freedom to be out of the office. 

Brenda Brassard, Scituate, Massachusetts 

Do Less After Work

I have three children, a husband, a dog, and a full-time job, and I was volunteering to help out with every activity that came forth. I finally realized that my children were happier to have me at home than out doing things that I thought were for their own good. I gave up everything except the once-a-month PTA meeting. My children are much happier knowing that I will kiss them good night while they are still awake, instead of while they are asleep. 
Michelle Corbett, Mississauga, Ontario

Do Less at Work
Being self-employed as a hairstylist, I decided not to accept any new clients. I found myself taking just one more cut and working until 8:00 or 9:00 P.M. I am now able to go to the kids' practices and make dinner for my husband for a change, and I am able to relax a little more. My family definitely comes first, and it's about time I realized this. 
Andrea Arnold, Willows, CA

Just Do Less

I got rid of my husband, hired a fabulous nanny and let her run my house, began buying in bulk, got to know my daughter's teachers, did not join the Junior League, got a personal trainer, and found a contractor and landscaper who were very good and trustworthy. I let go of a lot of stuff, and I realized I didn't have to do everything, just a couple of key things really well. 
M. Gary Ryan, Pelham, New York

What's happening with toilets in Dekalb County?

Too-thirsty toilets won't get water in DeKalb

By TY TAGAMI
The Atlanta Journal-Constitution
Published on: 06/01/08

Wary shoppers know all about kicking the tires on used cars and squeezing the fruit at grocery stores.

But are they ready to lift the lids on toilet tanks?

Home buyers in DeKalb County should get used to the idea, now that a new measure to cope with the historic drought is in effect.

Any house built before 1993 and sold beginning Sunday has to have "low-flow" toilets that swallow 1.6 gallons of water or less per flush. The volume is usually stamped on the underside of the lid that caps the water tank.

Older toilets? No water service.

Some prospective buyers are worried about the mandate.

"This low-flow thing has been a very, very hot-button issue for all my clients in DeKalb County," said real estate agent Ryan Graham.

Graham, who is with 9 Mile Trolley, said at least one client expedited closing a sale to avoid dealing with it. Other buyers want assurances they can obtain water service if they purchase an older house, he said.

The "inefficient plumbing fixtures replacement plan" requires sellers to disclose when their toilets, faucets and shower heads are not up to today's water-sipping standards.

County officials picked 1993 because low-flow toilets became mandatory in new construction around that time.

DeKalb still has as many as 165,000 pre-1993 houses, but no one knows how many have been retrofitted with low-flow devices.

The crackdown is part of the county's new water-conservation plan. Gov. Sonny Perdue ordered water providers to reduce consumption by 10 percent from a year earlier.

Starting in January, nearly all buildings sold in DeKalb — not only houses — will have to comply with the low-flow mandate.

The county law says new owners of old homes who apply for water service must attach a certificate confirming the house is outfitted with water-saving toilets and fixtures. A licensed plumber, home inspector or an inspector from the DeKalb Department of Watershed Management can provide the certificate.

The toilet mandate should mean work for plumbers. So far, demand hasn't surged, said Ted Zurn, the president of the Plumbing and Mechanical Association of Georgia.

A friend selling a house asked for a deal on three toilets, the Chamblee plumber said, adding that he would have forgotten about the mandate otherwise. "I haven't noticed any bump in our business yet because of it."

The DeKalb Association of Realtors opposed the requirement, concerned about the effect it would have on clients. Graham, the real estate agent, said he's been warning his clients about it — and recommending to sellers that they get the installation.

Graham said there is a lot of confusion and uncertainty. For instance, one of his clients made a purchase contingent on the seller completing installation. But when Graham sought assurance from the county that the work was adequate and water service would be provided after the property changed hands, he said he got no clear response.

"We're not getting the warm and fuzzy reassurances from the county at this point," he said.

The county has a copy of the new law on its Web site, at www.dekalbwatershed.com

What? What? I have to replace my toilets to sell my house?

Yes, maybe.

The Dekalb County toilet retrofit/inefficient plumbing ordinance goes into effect today. For now, this only applies to homes built prior to 1993 in unincorporated Dekalb. So, if you live in Decatur or Incorporated Avondale Estates, or if your home is newer that 1992, you are exempt. But, it's looking like we're all going to be subject to this eventually, so don't ignore it all together.

In essence, this is about replacing high-flow toilets and faucets with low-flow fixtures. If you are selling your home you must disclose whether your fixtures are high or low flow. If you are buying a home you must have low-flow fixtures installed and inspected before you can get water service

Here's a summary from the Dekalb Association of Realtors. I'll post updates as I have them...

Inefficient Plumbing Fixtures Replacement Plan Summary


1) On Tuesday, February 26, 2008, the Board of Commissioners approved the inefficient
Plumbing Fixtures Replacement Plan Ordinance.

2) This ordinance requires that structures constructed in DeKalb County before January 1,
1993 be retrofitted with water conserving plumbing fixtures upon resale.

3) This ordinance advances DeKalb County’s long term water conservation efforts and long
term sustainability of limited water resources.

4) Effective dates:

a. June 1, 2008 for residential properties.
b. January 1, 2009 for commercial properties.

5) Requirements:

• Seller shall disclose the requirements of the ordinance to potential purchaser
prior to execution of a contract.
• Buyer shall not be allowed to obtain water service until he/she has attached a
Certificate of Compliance to the application for water service. The Certificate
of Compliance must be signed by:

i. Home Inspector,
ii. Department of Watershed Management Inspector, or
iii. Licensed Plumber.

6) Exemptions:

• Any real property that is being advertised for foreclosure.
• Properties that will not be inhabited but will be demolished.
• Properties that are sold or conveyed between spouses or between parents
and their children.
• Properties being conveyed during the administration of the estate of a
spouse, parent, or child.
• Properties that because of architectural or historic restrictions, plumbing
configuration, and/or drainage system configuration, would cause the
owner to suffer extreme economic hardship ($1,000.00 per toilet for
residential or $2,000.00 per toilet for commercial).

7) Criminal Penalties:

• Violators will be subject to penalties in accordance with Section 1-10 of
the DeKalb County Code.
• Second conviction within 12 months from the date of first conviction -
$250.00.
• Third conviction within 12 months of the first conviction - $500.00.

What does Fannie Mae have to say?

So, here's what I meant when I said that what Fannie Mae says makes a difference in the market. Last summer Fannie Mae announced that she wouldn't be buying any more sub-prime loans (smart move on their part), and that's what kicked off what has become known as the "sub-prime mortgage crisis." Remember what I said about how banks need to sell their loans to stay liquid? Well, if Fannie Mae won't buy your loans, you probably can't get anyone else to buy them either.

But, she's made an announcement this week about down payment assistance programs and their rules for buying loans on homes in neighborhoods where prices have declined. This is from their website, www.fanniemae.com:

Fannie Mae Announces Single National Down Payment Policy;
Replaces Policy Regarding Markets Where Home Prices are Declining

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced a new, national policy on down payment requirements for conventional, conforming mortgages the company will purchase or guarantee. Starting June 1, 2008, Fannie Mae will accept up to 97 percent loan-to-value ratios for conventional, conforming mortgages processed through its Desktop Underwriter^® (DU^®) automated underwriting system, and 95 percent loan-to-value ratios for loans underwritten outside of DU, in all geographic locations in the United States. The new national down payment policy will supersede the policy the company adopted in December 2007 that required higher down payments in markets where home prices are declining.

"As another part of our 'Keys to Recovery^TM' initiative, we are today announcing that we will be equalizing the down payment requirements for borrowers in all parts of the country, regardless of local market conditions," Marianne Sullivan, Senior Vice President, Single-Family Credit Policy and Risk Management, said. "This new down payment policy reinforces our goal to support successful home-owning, not just home-buying, as we seek to bring liquidity to all communities and help the housing market recover."

The new national down payment requirements of 3 or 5 percent will apply to loans for purchase of single-family, primary residences. Down payment requirements will vary for other occupancy, property and transaction types. The company will implement systems and operational changes over the summer to accommodate the new national policy.

"We are able to adopt this new, national down payment requirement, even in markets where home prices are declining, because our new automated underwriting risk assessment model DU Version 7.0 will limit risk layering and assess each loan more precisely," Sullivan added. "At the same time, we believe that equity matters, especially in this market. Down payments are a critical success factor in homeownership -- and responsible lending is good business."

Since the housing correction began, Fannie Mae has expanded its mortgage guaranty business to serve the market's urgent need for stability, liquidity and affordability. The company also undertook steps to help protect borrowers, manage the increased credit risk in the market, and fortify the company's capital position. Among these steps, the company has continued to assess and establish new pricing, eligibility and underwriting criteria for its business that more accurately reflect the current risks in the housing market and guard against the potential for foreclosure. These changes have been incorporated into DU and have included adjustments to credit risk assessment, loan-to-value ratios and down payment requirements, among other factors.

Among the changes in response to market conditions, in December 2007 Fannie Mae adopted a "Maximum Financing in Declining Markets Policy" that restricted the loan-to-value ratios on properties in markets where home prices are declining, essentially requiring higher down payments in these markets. The new single national down payment policy announced today will supersede that policy.

Fannie Mae Senior Vice President Jeff Hayward stressed the company's commitment to special affordable lending programs to support homeownership for families of modest means. "We are stepping up to provide more liquidity and affordability to some of the most distressed communities while also seeking at least a 3 percent down payment investment through our Desktop Underwriter system from borrowers to help ensure their success."

Fannie Mae will continue to provide support for homebuyers that need down payment assistance, and will continue to allow loans with Community Seconds^® up to a maximum 105 percent combined loan-to-value ratio. Community Seconds allow a borrower to obtain a second-lien mortgage to help cover down payment and closing costs, with funding typically provided by a state or local housing agency; an employer; or a nonprofit organization. Fannie Mae also offers MyCommunityMortgage^® and Flex mortgage products, which permit down payment assistance programs in the form of gifts and grants.

"We recognize that down payment assistance programs remain a viable tool for borrowers who can afford a mortgage long term, but might need a little help getting started," Sullivan said.

As part of its "Keys to Recovery" initiative, Fannie Mae is expanding its partnership with the National Council of State Housing Agencies. The company will provide up to $10 billion in financing to help Housing Finance Authorities (HFA) serve first-time homebuyers of modest means. In some cases, Fannie Mae will purchase HFA mortgages that have greater than 97 percent loan-to-value ratios.

The first "Keys to Recovery" initiative that Fannie Mae announced on May 6, 2008 also includes: streamlined refinancing for Fannie Mae borrowers whose mortgage balances exceed the value of their homes; improved pricing for jumbo-conforming mortgages to help borrowers in high-cost areas; and a neighborhood stabilization initiative with the Center for Community Self-Help for targeted areas with high home foreclosures.

Who is Fannie Mae?

From their website - www.fanniemae.com:

Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.

Most of that is pretty clear. What might not be clear is the term, "secondary mortgage market." Here's what that means. When banks and mortgage companies make loans, they usually sell them to someone in the secondary mortgage market. When we bought our first home we used Sunshine Mortgage, but within a a couple of weeks we got a letter from citi-bank saying that they had bought out mortgage. Nothing about the mortgage terms and conditions changed, just who we sent the check to.

Why do we need a secondary mortgage market? So banks and mortgage companies can stay liquid. Here's an example. Let's say that Sunshine Mortgage has 10 million dollars to lend out on Monday morning. Every day that week they make 2 loans for $500,000. At the end of the week, they are out of money. They will be getting monthly payments on all of those loans, but it will be months before they can make any more mortgage loans.

But, because of the secondary mortgage market, banks can sell their loans and have cash to make new ones. Why am I telling you about Fannie Mae? Because I want you to be well educated real estate shoppers, and because what she says has a big impact on the market. I'll explain more later...

How should I choose my real estate agent?

I have some suggestions. Obviously you want someone who knows your local market well, who is punctual, responsible, connected to other agents, and intelligent. I'm assuming that you already know that. Here are some other things to look for:

1. Would you like to have a cup of coffee with this person? If the answer is "no," keep looking. You aren't actually going to have a cup of coffee with them, probably, but you are going to spend some time together. There will be a lot of time in the car, if you're buying. But in general if you don't have a good fit with your agent's personality, you'll dread hearing from him or her, and you'll avoid calling as well. Communication is important, so go with someone you don't mind having a chat with.

2. Would you let this person house-sit/pet-sit for you? This goes back to the responsibility thing. Your agent, if you are selling a home, is going to have keys to your house, and access to lots of information about you. If you're buying, your agent will eventually be responsible for a very large check that you've signed. If you wouldn't let them house sit for you, trusting them to lock the doors, feed your cat, and get the mail everyday, you shouldn't hire them as your agent.

3. Do you agree with this person's sense of style? Everyone has a different way of looking at the world and at themselves. I like diversity, but in real estate relationships I prefer a good match. If you are thinking about hiring an agent who's sense of style doesn't suit you, you might find that he doesn't show you houses that suit you either. Or if you're selling your home, the suggestions that she makes to get your home ready to sell might be intolerable. On the other hand, if you know that you have bad taste (you know who you are) try to find an agent who's taste you respect.

Where should I buy ink cartridges?

Cartridge World. There's one at the Emory Commons shopping center. It's a good place to buy your ink cartridges for two reasons.

1. It's cheaper. The first time you buy an ink cartridge from them you'll pay pretty much what you would pay at Office Depot or Target. But when you bring that cartridge back and they refill it for you (takes less than 3 minutes) it's about half that price.

2. It's recycling. Most ink cartridges now have a computer chip on them that helps your computer keep up with how much ink you have left. That's how it knows when to send you incessant messages to refill soon...but I digress... anyway, those chips don't need to go in the garbage or the landfill because they contain toxins that don't need to make their way into the earth. So, not only does it keep the cartridge itself from taking up space in the landfill, it help prevent contamination as well.

Good work, Cartridge World!

How should I behave in a crosswalk?

Here's a free tip - when driving through downtown Decatur, particular by Starbucks, you should stop for pedestrians in the crosswalk. The Decatur police are getting serious about it, so watch yourself. They'll also pull you over for not wearing a seatbelt. And by "pull you over" I mean that they will blow their very loud wistle at you, and everyone will stare. I'm a habitual seatbelt wear-er, and I am often a pedestrian so I like to stop for them as well. But, the rest of you folks should watch it.

And, while I'm on the subject of pedestrians. Please cross at crosswalks. And, if you're at an intersection with a light, please don't go when the people in the turn lane get their green arrow. You'll get your turn in about 3o seconds, but by then it will be too late for the people in the turn lane to go. I'm talking to those of you who are crossing between Atlanta Bread Company and Rue De Leon at Church Street. Yes. You. Wait for the little walking man, please.

What's up?

I've been busy on a couple of fronts. There have been three contract negotiations going on. I went to Birmingham for one night for a concert at BSC. Working on business plans. Pitching in a little as Aunt Janice. And then, of course, there is still laundry to do. So, nothing so exciting that I have a good excuse for not blogging, but that's about it.

I do have to brag on Andy Yates. My tech support is amazing. Check out the website he created for a new listing: www.janiceyates.com/treehouse

He's amazing. Granted, it's an amazing house so that helps. But, I'm a lucky gal.

Here's a funny story...to me. After I do an open house or a caravan I try to get by my brother's house to give my nephew the balloons. He's always happy about that. The last time I did it was the Sunday of the Inman Park Festival and it also happened to be raining. Sully, who is 3, wanted the balloons, but he didn't want to put on his shoes or his raincoat, so I picked him up and we ran in the sprinkling rain out to the car to get the balloons.

So on Wednesday I went by to help out because my brother had to work late. After I'd been there for about 10 minutes Sully said, "Did you bring any balloons?"
I replied, "No, buddy, I'm sorry. I only have balloons on Sundays, and sometimes on Tuesdays."
he continued, "And when it's raining."

How cute is that?

What's New?

I need to give out some High-Five's.

High-Five to Andy Yates for tech support and inspiration this week.

High-Five to Macy's at Northlake Mall. Is it new lighting? Did they rearrange? What is it? I don't know, but it looks 10 times better and I can stand to be in there again.

High-Five to Sullivan for offering to help with my open house.

High-Five to Inman Park for putting on a kickin festival, and helping me have terrific traffic at my open house.

High-Five to Milton Watts for always having a hammer in the trunk of his car.

High-Five to www.expresscopy.com for turning around my flyers and having them at my door in less than 48 hours.

Why would I want to look at my house from outer space?

Have you seen Google Earth? It's a free program that you install on your computer. It takes about 10 minutes and you don't even have to re-start it afterwards. Once it's installed you can enter an address and then see satellite pictures of that location. You can get pretty close, for example, when I google-earthed my house I could tell which of our cars was parked in the driveway. Of course, we don't have any trees over our driveway, which helps me get a good view.

So, why would your real estate agent suggest that you install such a program? Because sometimes even when you drive through a neighborhood you can't see everything. I worked with a couple who wanted to buy in the Thomas Jackson school district in Atlanta. We thought we'd found the perfect house for them. They went home and google-earthed the property and discovered that they were less than a block from a water treatment facility. When we started asking the neighbors we discovered that the facility is quiet, but often creates a mildly foul odor in the neighborhood. It's still a terrific house, and lots of people wouldn't care about that occasional smell. But these folks did, so I was very glad to have that information.

So, before you buy, take a look from the sky.

There's a link to google earth in the top left of your screen.

Where should I get a loan?

I am getting a lot of loan questions lately, so I thought I'd spend a few minutes on the frequently asked questions around mortgages and mortgage professionals.

1. Does it matter who I work with as long as I get the best rate?
Yes. I want you to get the best possible rate too, but more than that I want you to be able to close on your house. If you can't close because your mortgage guy dropped the ball, it doesn't matter how good of a rate he quoted you. If you can find someone who offers a guarantee about your closing date and good faith estimate, that's a good sign that they won't drop the ball.

2. I like my bank/credit union, can't I just use them?
You certainly can. Include them in the short list of people you call to compare rates. In my experience, banks and credit unions are your best choice for short term loans for cars, home improvement projects, etc. Mortgage bankers do better with the long-term loans.

3. I don't want to compare rates, just tell me who to use.
I like Fairfield Mortgage, and James Williamson and Robbie Crozier in particular. They have a $1000 guarantee about closing costs and closing dates. They are always up to speed on the market, what new loans programs are out there, and what the current rates are. They always take time to answer my questions. Plus, I have a good relationship with them, so if we hit a snag with your closing I know how to get in touch with them quickly and easily.

4. I got qualified online. Can we go look at houses now?
No. This answer has three parts.
A. Unless this online service checked your credit, and considered loan programs specific to your situation and location, you are going to need to talk to a lender. You're so close! Just take 10 minutes and call a lender, then give them my phone number and have them call me. It's that easy!
B. Why are we such sticklers for this? As a Realtor, I have made a commitment to be fair and honest. If there isn't a real chance that you can buy a particular house, I can't show it to you. Think about it from the seller's perspective... you get a call from an agent, saying that she wants to show your house on Saturday morning at 10 am. So you spend Friday night getting it clean, you make arrangements for the neighbor to walk the dog, and you take your kids to McDonald's for breakfast so that the house will be empty. Then when your Realtor calls the other agent to ask how the buyers liked the house, the other agent says, "Well they can't actually afford to buy it, but they wanted to look around a little." As the seller, how would you feel about making all of that effort, with no chance of it selling you home? I have an obligation to the home-owner to make sure that you can buy her house, before I take you into it.
C. You are going to have to submit either a proof of funds exhibit or a pre-qualification letter with an offer, so you might as well go ahead and talk to someone now. If you submit an offer with an on-line qualification, they will laugh at you, and me. And I don't like to be laughed at.

If you have a mortgage question I didn't answer, send it my way. If I can't answer it, I'll ask James and Robbie.