As the chair of Leadership Sandy Springs’ 2008 Volunteer For A Better Sandy Springs and the president-elect of the Sandy Spring’s Kiwanis, I have been working to have the Ronald McDonald House in Sandy Springs and the Sandy Springs Kiwanis begin a future relationship.  Hopefully, the Kiwanis will make a positive impact on the Ronald McDonald House and vice-versa.

The Ronald McDonald House, located at 5420 Peachtree Dunwoody Road, is a fantastic organization that the community can be proud.  The home is a place for families to stay while their children receive specialized medical care which can last many months.  For these folks, this special place is a godsend.  Just walking through the home reminds us that this place is a truly special home.  The house manager, Cari Olson, does a fantastic job with the facility.  The house relies primarily on donations from national and local businesses, and individuals. Many local volunteers serve the facility as well.

I would highly recommend my readers to visit the Ronald McDonald House website for more information (www.armh.com) and find a way to help.  Also, if you ware interested in getting involved with serving the community, the Kiwanis is a great place to start.  For more information about the Sandy Springs Kiwanis, please contact me or visit our website at www.kcss-ripples.org.  We meet the first and third Thursdays of each month at Aldo’s between 11:45AM to 1:00 PM.  Join us as my guest to start your journey into community service.

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Parents giving their children money for a down payment on their first home is certainlynot a new idea. We see a variety of choices being made in the marketplace. Some elect to co-sign on the mortgage with the children. It doesn’t cost Mom and Dad any money, but it may help the children qualify for a loan. Others either give or lend money for the down payment. A few even decide to put enough money to “buy down” the mortgage interest rate, allowing for the rate to be lower in the first few years, making it easier to qualify for the loan by lowering the monthly payment. The concept of equity sharing, although used by builders and real estate investors, may also be one of the best methods for helping the kids buy a house. Shared equity allows the children to feel less indebted than with an outright loan, and at the same time gives parents an added tax advantage. An equity sharing arrangement might work like this: The young homebuyers purchase a home jointly with their parents, they split  the down payment and ownership costs including monthly payments, and the children rent the parent’s share of the home. The benefits to the young homebuyers include affording a larger home for less money, having lower down payment and ownership costs, ease of qualifying for the loan, and the beginning of building an investment portfolio. The benefits to the parents include helping the children to afford a home, receipt of rental income, financial and tax benefits, increasing their investment portfolio, and having a reliable tenant. When the home is sold, perhaps after a specified period of time, the parents get back their initial investment, and the additional proceeds are shared in proportion to each one’s investment. While shared equity can be arranged between perfect strangers, the beauty of this agreement is seeing a family investing wisely together, with both parents and their children gaining benefits they may not otherwise obtain alone. Both parties should exercise due diligence by receiving counsel from experts in the areas of accounting, financial planning, and legal.  

Many national studies have shown that folks who are trying to make money flipping homes do not fare very well.  An acquaintance of mine recently felt they did not need my services while attempting to flip a house for a quick sale.  Sadly, the tale did not end well.  The person overpaid for the home and failed to get a good inspection.  Before any cosmetic work, the person had to drop over $20,000 on serious foundation issues.  Between them overpaying for the home, the unexpected repairs, and the cosmetics repairs, there was no way they could make any money on a flip.  Sadly, they even ran into problems with  trying to get the home HUD certified for Section 8 Housing.  From the purchase to repairs to figuring they were way over their head, it took them around 12 months to finally get a renter. The rent doesnot even cover their mortgage.  Don’t let this happen to you. Think hard about flipping a home and call me if you need help. The below video is an amusing look at flipping properties.  Enjoy. 

Click Here if you can view the video.

Do you have any tales of flipping a home?

Below is a picture of my first airplane.  I get asked about my airplane a lot so I thought I would share this info with you. I bought this bird from a cropduster pilot in Selma, Alabama. He had fixed up the plane and did a lot of work on it.  I fell in love with it when I first saw it sitting in the sun at the Wetumpka, Alabama Airport (08A).  The airplane was a 1941 Luscombe 8C.  It was converted to an 8E some time ago. Because it is an 8C model it is fairly rare for Luscombes. This plane had a lot of history.  It was built and flown before Pearl Harbor.  The plane came off the assembly line around June 1941.  It was used to train WWII pilots and also spent some time of floats.  The floats were being tested to be sold to the US Navy.

 I learned how to fly taildraggers in this thing and it made me a much better and safer pilot.  The Luscombe has a nasty reputation for being difficult to handle on the ground. If you practice with it, there should be no problems.  I specifically remember flying on summer evenings before sunset at around 1500 ft with the windows open and elbow hanging out enjoying the beautiful scenery go by. 

It was fast for its class of airplane.  I often enjoyed flying circles around my friends with C150s, Ercoupes, and C120s.  Particulary, I enjoyed the interest that the plane generated when I flew into different airports around the Southeast.

I eventually sold the plane to a fellow in the Chicago area.  I found this picture of the plane on the internet and it has given me a lot of positive memories of flying my own airplane.

Share your experiences with small airplanes…

I cut my teeth in the real estate industry by selling land. I went door to door and spoke with land owners to see if they wanted to sell.  This led me to many listings and some very valuable experience within real estate.  There are not many residential Realtors who know or can specialize in raw land sales.  If you are thinking about buying or possibly selling any land that you have, please call me and I can help you out.

This weeks video blog is the first installment in a periodic series about land - entitled Land 101.  I will explore various aspects that are important to know if one is going to invest in land.  The first episode is about the concept of “Highest and Best Use”.  Oftentimes, it has a great impact on the value of land - either positively or negatively. If you are not able to view the video your firewall may be blocking you.  I have included a link below the video box which will take you directly to the video.

Click her to view video if unable to see blox above.

Let me know if I can help you in any way.

Folks who have gone through a real estate transaction have had experience with the appraisal. There is a lot of myths that are floating around surrounding appraisals.  Unfortunately, many of them come from Realtors themselves.  Here is a list of things I have heard about appraisals over the course of my nine  year real estate career. 

Folklore: The appraised value of a property will vary, depending upon whether the appraisal is conducted for the buyer or the seller.
Reality: The appraiser has no vested interest in the outcome of the appraisal and should render services with independence, objectivity and impartiality - no matter for whom the appraisal is conducted.

Folklore: Market value should approximate replacement cost.
Reality: Market value is based on what a willing buyer likely would pay a willing seller for a particular property, with neither being under pressure to buy or sell. Replacement cost is the dollar amount required to reconstruct a property in-kind.

Folklore: Appraisers use a formula, such as a specific price per square foot, to figure out the value of a home.
Reality: Appraisers make a detailed analysis of all factors pertaining to the value of a home including its location, condition, size, proximity to facilities and recent sale prices of comparable properties.

Folklore: In a robust economy - when the sales prices of homes in a given area are reported to be rising by a particular percentage - the value of individual properties in the area can be expected to appreciate by that same percentage.
Reality: Value appreciation of a specific property must be determined on an individualized basis, factoring in data on comparable properties and other relevant considerations. While some parts of Atlanta have experienced tremendous growth some areas have actually fallen in value!  The only way to know for sure is to get an appraisal!

Folklore: You generally can tell what a property is worth simply by looking at the outside.
Reality: Property value is determined by a number of factors, including location, condition, improvements, amenities, and market trends.  Interior condition can have a significant effect on value!

Folklore: Because consumers pay for appraisals when applying for loans to purchase or refinance real estate, they own their appraisal.
Reality: The appraisal, if used used in a federally related transaction is, in fact, legally owned by the lender - unless the lender “releases its interest” in the document. However, consumers must be given a copy of the appraisal report, upon written request to the LENDER, under the Equal Credit Opportunity Act.  The Appraiser in NOT allowed to provide the property owner a copy of the appraisal without the Lenders written permission.

Folklore: Consumers need not be concerned with what is in the appraisal document so long as it satisfies the needs of their lending institution.
Reality: Only if consumers read a copy of their appraisal can they double-check its accuracy and question the result. Also, it makes a valuable record for future reference, containing useful and often-revealing information - including the legal and physical description of the property, square footage measurements, list of comparable properties in the neighborhood, neighborhood description and a narrative of current real-estate activity and/or market trends in the vicinity.

Folklore: Appraisers are hired only to estimate real estate property values in property sales involving mortgage-lending transactions.
Reality: Depending upon their qualifications and designations, appraisers can and do provide a variety of services, including advice for estate planning, dispute resolution, zoning and tax assessment review and cost/benefit analysis.

Folklore: An Appraisal is the same as a home inspection.
Reality: An Appraisal does not serve the same purpose as an inspection. The Appraiser forms an opinion of value in the Appraisal process and resulting report. A home inspector determines the condition of the home and its major components and reports these findings.

 Please call on me if you have any questions about your appraisal.

As a real estate professional, I have to assume a lot of responsibilities to get the job done when trying to close on a home.  Every so often, while I am PILOTING THE PERFECT MOVE for my clients, I have to roll up my sleaves and remove some really pesky ghosts from a home.  They can really “spook” the buyer.  Sometimes they are real deal killers (worse than mother-in-laws!).  Here are some tried and true ways to get rid of those ghost.

DO:The easiest way to get rid of a ghost is to simply ask it to leave.   Use a firm voice and tell the ghost exactly what you want and why.  You might say something like this: “This is my house and it bothers me when you are around all the time.  Would you please leave?”   Remember, the physical world is your domain and ghosts rarely have any power in the physical world.  

DO: Ghosts don’t always know that they are dead.  You may have to explain to them that they are dead, that they no longer belong in the physical world and will be better off if they move toward the light.   Sometimes you may have to ask what the spirit wants.  This is often the case with someone who has recently passed over who may be attempting to communicate to you about something.  Afterwards, they are happy to leave.   Use your imagination to “see” loved ones, angels, or guides coming to
take them to the light.  

DO NOT:When telling the ghost to “go away”, do not yell or sound angry.  Do not give the spirit recognition by talking about it in your home, or maybe avoid talking about it all together.  This provides the spirit with energy, making it more powerful.   Try not to show fear.  It is your home and the spirit can generally do you no harm.  Fear can also provide the spirit with energy.     

nd foot

Just like me, you probably take your garage door for granted.  Well, think about these thoughts when you think about your garage door…

Since we are celebrating MLK’s birthday, I thought it would be interesting to share some information about the Atlanta home where he was born.

Just past noon on January 15, 1929, a son was born to the Reverend and Mrs. Martin Luther King, Sr., in an upstairs bedroom of 501 Auburn Avenue, in Atlanta, Georgia.  It was in these surroundings of home, church (Ebenezer Baptist Church), and neighborhood (Sweet Auburn) that “M.L.” experienced family and Christian love, segregation in the days of “Jim Crow” laws, diligence and tolerance.

Even though the pictures do not work on this link.  The page gives you nice view of the floor plan of the home.  You can click on each room and find out a little about Dr. MLK’s life.  Click Here for the post.

Tell us what MLK day means to you.

1.

value: $7,000

complete with storm windows and air-conditioning…

2.

value: unknown

for the oriental dog…

3.

value: $15-20,000

this house comes with a cat-butler…

4.

value: $6-10,000

check out the porch…

5.

value: $8,000

how many windows? no wonder he looks smug…

6.

value: $8,000

an ideal house to retire in…

7.

value: $10,500

river view, flatscreen tv, air-conditioning…

8.

value: $50,000

the dogvilla…

9.

value: $1500

for the dog on the move…

10.

value: $500

the minimalist doghouse…

Can you share any funky dog houses with us?

Have you ever wanted to live in an airplane? Not!  Well, I am airplane nut and would love to live in an airplane.  I would also love to live in an Airpark (a community that has a runway and you can taxi your plane to your house).  The wife has vetoed any decisions to do that.

For around $300,000, you can purchase an old Boeing 727 airliner (of course not flyable). Once the company delivers the airplane to you, you can create the interior living space any way you like.  

Here are some pictures so that you can imagine what it looks like:

For more information, please visit www.airplanehomes.com.

Could you live in such a thing?

Realtor’s like to make lists about what a buyer needs to do to sell a home.  I figure I will give you a list of things that you can do to not sell your home. Here’s a cynical list to be followed only by those intent on not selling their house. These are situations that I have encountered during my real estate career.

10. Stage it like you are big Civil War fan and have rebel flags and Confederate memorabilia all over the place.

9. Refuse to have open houses.  I mean, hey, weekends are for watching sports games and sleeping.  Let the prospective home buyers find a time that’s not inconvenient for me.

8. Don’t let agent list home on FMLS and MLS.  Don’t tell anyone I am selling my house! 

7. Refuse to have your agent put a lockbox on the property.

6. Insist on keeping your four cats each with their own litter boxes in a small two bedroom condo.  (This one smelled real nice!)

5. Don’t want a for sale sign.  Don’t want passers-by to know home is for sale.

4. Hire your cousin who is not a full time agent who travels for work to sell your home. After all, it’s more important to hire somebody you have a connection with than a real local professional who will be available for you almost all the time.

3. Insist on the buyer to pay for your commission when you are the listing agent.

2. Paint the house in a bright blue color and have it clash with all the homes on the street.

1. Overprice the home because my home is much better than anything else in the subdivision.

I was at the Sandy Springs Chamber of Commerce After Hours Networking Event the other day at the Tasting Room  and someone asked me the question “What is going on with the Mortage Industry?”  They said they had heard that the mortgage guidelines were changing.  Now, what does that mean?  It means that changes in the mortgage industry can impact one’s  ability to buy, sell, and refinance a home.  The following video offers a nice description of what is actually going on.

 Click here for the video

 If you have any questions, please let me know.

Living in Atlanta is the place to be if you want an ugly home.  I can even help you out in finding one if you want to buy.  The rates are good and the inventory is prime.  According to HomeVestors, the top ten Amercan cities for ugly homes is as follows:

1.  Houston, Texas

2.  Atlanta, Georgia

3.  Dallas, Texas

4.  St. Louis, Mo.

5.  Phoenix, Arizona

6.  Fort Worth, Texas

7.  San Antonio, Texas

8.  Minneapolis, Minnesota

9.  Chicago, Illinois

10.  Milwasukee, Wisconsin

Can you add any other cities to this list?

Don’t Miss An Opportunity to Buy:

Mortgage applications up 28%

Mortgage Bankers Association says the number of people filing applications rose sharply last week; seasonal volatility and falling interest rates both factors.

WASHINGTON (AP) — Mortgage application volume skyrocketed for the second consecutive week, rising 28.4 percent during the week ending Jan. 11, according to the Mortgage Bankers Association’s weekly application survey.

The MBA’s application index rose to 906.4 from 706 the previous week, which was shortened due to the New Year’s holiday. Mortgage volume slows during the winter, which can lead to greater volatility. Application volume jumped 39 percent during the same week a year ago.

Refinance volume rose 43.4 percent, while purchase volume jumped 11.4 percent. Refinance volume accounted for 62.7 percent of total application volume, compared with 57.7 percent the previous week.

The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.

An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 906.4 means mortgage application activity is 9.064 times higher than it was when the MBA began tracking the data.

The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50 percent of all residential retail mortgage originations each week.

Applications rose as interest rates continued to fall. The average interest rate for traditional, 30-year fixed-rate mortgages fell to 5.62 percent from 5.73 percent. The average interest rate for 15-year fixed-rate mortgages — which are typically used to refinance loans — fell to 5.07 percent from 5.21 percent.

Rates for one-year adjustable-rate mortgages fell to 5.77 percent from 6.04 percent

December 12, 2007 (Sandy Springs, Ga.) - The Sandy Springs Business Association announced today that it will be operating under the name Sandy Springs / Perimeter Chamber of Commerce starting January 1, 2008. “We are very excited about forming the new Chamber,” says Wanda Buckley, who will serve as Chairperson for the Chamber.

This article appeared recently in my alma mater’s Alumni E-Magazine, The University of Michigan’s Michigan Today. The article discusses a study which shows what parents are looking for in a teacher. You will be surprised. 

December 3, 2007

Parents prefer teachers who make their children happy even more than those who emphasize academic achievement, a new University of Michigan study shows.

When requesting a teacher for their elementary school children, parents are more likely to choose teachers who receive high student satisfaction ratings than teachers with strong achievement ratings, said Brian Jacob, the study’s co-author and director of the Center on Local, State and Urban Policy at the U-M Gerald R. Ford School of Public Policy.

These findings, however, mask striking differences across schools. Families in higher poverty schools strongly value student achievement and appear indifferent to the principal’s report of a teacher’s ability to promote student satisfaction. The results are reversed for families in wealthier schools.

The findings appear in the new issue of the Quarterly Journal of Economics.

“The value of this study is that it helps education practitioners and policymakers better understand how factors such as family poverty can influence what parents are looking for in a school,” Jacob said. “While all parents presumably want what is best for their children, this can mean very different things depending on the school and neighborhood context.”

Lars Lefgren, an economist at Brigham Young University, co-authored the study.

The study is the first known review of its kind to examine parents’ preferences using information on parent requests for specific teachers within a school. The sample included more than 300 kindergarten through sixth grade teachers in a mid-sized school district in western United States. This district did not have a formal procedure for parent requests, but parents could submit requests to principals before class assignments were made.

Within a school, there were no differences between more and less advantaged parents who requested a teacher in terms of the value the parents placed on student satisfaction versus student achievement.

The findings were consistent with a model in which high- and low-income parents have similar preferences for student outcomes, but face constraints that are correlated with school demographics. Academic resources are typically more limited in higher-poverty schools—for example, such schools generally have more disruptive peers, lower academic expectations, fewer financial resources and less experience teachers. Parents in these schools may seek teachers skilled at improving achievement even if it means sacrificing student satisfaction, the researchers said. In higher-income schools, where academic resources are more abundant, a teacher’s focus on academic achievement may be less valuable than his or her ability to help students enjoy school and learning.

The study also found that parents of low-income, minority and low-achieving children are less likely to make requests for specific teachers than other parents.

“Programs that increase the focus on basic skills or classroom management at the expense of student enjoyment or other academic outputs not measured on standardized tests are more likely to be unpopular in higher-income schools,” said Jacob, who is the Walter H. Annenberg Professor of Education Policy and Professor of Economics at the Ford School.

A roof, just like one’s skin, is very important.  You have to maintain it or there can be some dire consequences to your home’s health.  Sometimes we are face with the decision as to whether to replace the roof or just repair it.  The video looks at the issue and helps you determine how to visually examine your roof.

 If for some reason you are unable to view the video, please click on here.

Please share your thoughts.

The other day I was talking with a prospective client and they had reservations about Realtors.  They simply thought that many of them lacked the professional skills that one would find in the business world.  Sadly, in my mind, I had to agree.  Many of my peers just do not get it when it comes to treating their practice as a business.  In as much as I feel sorry for these souls, I feel sorry their clients who choose them and do not realize what type of service they are getting.  I have been on the other side of negotiations and have watched other agents sell out their clients or drop the ball on doing what is right for their clients.   On the other hand, there are many fantastic agents out there.  It is just too bad that some bad apples tarnish the reputation of the others. My goal is to turn my clients into raving fans and PILOT THE PERFECT MOVE.

 Enjoy this video of a spoof on the day in the life of a Realtor.  If you run across someone like this, run and call me ASAP. 

CLICK HERE FOR VIDEO

Let me know what you think.