As a long-term investment, Huntsville homeownership is still one of the best investments for individual households.
Everywhere you look, headlines say the housing market is in a free-fall, foreclosures are rising at an alarming rate, and mortgage money is so tight that buyers can’t get a home loan at any price.
In today’s economy, is buying a home and investing in Huntsville real estate a good idea? As a long-term investment, homeownership is still one of the best investments you can make. And the operative word here is “long-term.”
Why is Huntsville real estate a good investment, you ask. The housing market, like all markets, is cyclical and will inevitably have ups and downs. But, homeownership has a track record that is virtually unmatched by any other investment of stocks, bonds or mutual funds.
Despite the current unrest in the mortgage industry, if you have good credit, a job and steady income, you will find there is still plenty of mortgage money to be had at decent interest rates. For well-qualified buyers, rates close to historical lows and the new Housing Recovery Act is offering first-time home buyers a $7,500 tax credit.
Not so long ago helping the environment meant recycling plastic and newspapers, but today it has evolved into “green” thinking and extends to our homes and our living environments.
According to a recent NAR survey, nine out of 10 Realtors® said their clients are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now.
Results of a Harris Interactive poll by Move, Inc. show potential home buyers consider “green” building features more important than luxury amenities. Almost half of the adults surveyed (49 percent) said features such as solar panels or energy-saving appliances were “important,” compared to just 31 percent who rated luxury amenities important.
Ninety-three percent of all home buyers are not willing to pay more for green or energy efficient features when building a home, according to a recent independent study commissioned by The New York Times Customer Insight Group.
However, a recent survey from Green Builder Media reports U.S. home buyers are willing to pay a premium for more environmentally friendly, green-built homes.
More than half of home builders surveyed (250 residential builders across the U.S.) said that buyers are willing to pay a premium of between 11-25 percent for green-built homes. The same builders report that the average green home buyer is between the ages of 35-50 with a college degree and fair understanding of green products.
Despite the conflicting statistics, the U.S. Green Building Council believes thinking “green” is an industry trend, rather than a passing fad; not only does it save on energy costs, it is better for our overall health and the environment as a whole.
Existing-home sales rose from the first quarter in 13 states, largely from buyers responding to discounted home prices, according to the latest quarterly survey by the National Association of Realtors®. Nearly one-quarter of metropolitan areas showed rising home prices in the second quarter from a year ago, with greatly mixed conditions continuing around the country.
NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said foreclosures are distorting the price data. “In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values,” Gaylord said. “Many buyers with long-term expectations are getting exceptional value in the current market. Once the inventory is drawn down, price pressure will return because the costs of construction are rising – today’s buyers are very well positioned to build wealth over time.” National Association of Realtors®.
Let’s take a look at the sales statistics for July 2008 to see how the Huntsville AL real estate market looks:
Huntsville/Madison County Real Estate Sales Statistics
Huntsville and Madison County saw a 20% decline in home sales this July, when compared against July 2007. The average list and sale price has seen an increase of 6% over last year. Likewise, the sales price to list price ratio remained almost the same. The average price per square foot increased saw a 4% increase. Homes remained on the market an average of 17 days longer than last year.
Date
Sold
Listings
Average
List Price
Average
Sale Price
Percent
SP/LP
Average
DOM
Average
Price
SqFt
July 2008
509
$221,622
$217,512
98.15%
88
$93
July 2007
641
$208,495
$204,821
98.24%
71
$89
Even though the statistics show a drop in the total number of sales, it is important to remember we are comparing to record year in 2007. The current market is good, just not as good as in years past. I fully expect the Huntsville market to rebound early next year. It is an excellent time to buy now as we are seeing larger amounts of negotiating room on the existing inventory. Interest rates are very low making it an excellent time to buy.
There are lots of good things happening in Huntsville and Madison County. I encourage you to take advantage the opportunities. Please call or email anytime with any questions, 256-508-0211.
Huntsville Real Estate for Sale
2943 Willowick Trail, Hampton Cove AL 35763
The American Dream starts with homeownership. Come see this 3 bedroom, 2.5 bath home in the Sussex Quarter neighborhood of Hampton Cove, AL. Great features include a master suite with separate shower, dual sinks, whirlpool tub and double sided fireplace that can be enjoyed from the bedroom or bath. the absolutely ideal place to unwind after a long day!
The captivating dining room will impress your next dinner guests with its 12′ ceiling and palladium window. The engaging great room is a delight with its casual elegance. The angled gas fireplace can be enjoyed from anywhere in the room. The high ceilings and abundance of windows make it a place the family will love to gather. The open and spacious kitchen is open to the great room and is perfect for entertaining. The family chef will never be isolated in a room all alone.
A spacious yard at the end of a quiet cul-de-sac is fenced and offers lovely mountain views. This home is a dream come true for the next lucky owner!
For more information about 2843 Willowick Trail or other Huntsville real estate, visit MoveToHuntsville.com or give us a call at 256-508-0211.
Does your Huntsville home have a façade only a homeowner could love? Selling a home can be an emotional experience, and people can lack objectivity when it comes to their own abode. Presenting a home in its best light is always important, but it’s imperative in our current competitive real estate market.
Professional advice and assistance can make the difference between “Wow!” and “Whaaa?” – a recent industry study found that staged homes sold for 6.9 percent more than homes that were not staged. Another study compared listing times before and after staging. Homes that had first been offered for sale without staging were on the market an average of 4.5 months; the same homes sold within a week, on average, after being staged.
Below are 7 tips to ‘setting the stage’ and making your home more appealing to buyers:
1. Thoroughly clean from top to bottom, especially kitchens and baths.
A dirty house an immediate buyer turn-off. The two most important areas are the kitchen and the bathrooms. If you have not deep cleaned all counter and tile surfaces to a spotless condition, you stand the chance of having the buyers walk right back out the door.
2. De-clutter the entire house.
Clutter makes it extremely hard for the buyers to visualize moving into your home. The disorganization affects the buyer’s ability to focus on your home and they will most likely overlook your key selling features. In addition, clutter has the affect of making your home appear smaller than it is as the “open” feeling is gone.
3. Remove the personal memorabilia.
People are generally curious and when you want them to notice the beautiful entryway they may be focused on all the family pictures on the piano or all the “stuff” stuck to the front of your refrigerator. Your objective is to change the view of your home from “lived in” to “ready to move in.”
4. Neutralize inside and out.
best way to present a home is for the wall colors to be painted a neutral color. This goes for the outside as well – a loud or non-neutral color may just keep the buyers from even stopping to see the inside.
5. Let the sun shine in with spotless windows.
Nothing is more distracting to a buyer than to be looking at a view through a dirty window. What you don’t see is often more important that what you do see.
6. Make your pets go away.
While your pets are a loving member of your family, for the buyers their presence, food and boxes are generally a turn-off. Every trace of their presence should be removed so, once again, the buyers are not distracted from the prime objective – viewing your home in the best possible light.
7. Add curb appeal.
A healthy, neat, trimmed and well maintained yard and flower beds are the keys to getting the buyers up to the front door. A well-maintained exterior translates to a well maintained home in the mind of the buyer.
Need help setting the stage and showing off your Huntsville home in its best light? Give us a call, we are glad to help.
Huntsville Second-home Sellers Pay For Tax Credits
You have probably heard, President Bush recently signed into law the Housing Rescue and Foreclosure Prevention Act. This is the most comprehensive housing bill to be enacted in over a decade. The bill is designed to help more buyers of Huntsville real estate realize their dreams, as well as, boast the struggling housing and mortgage markets.
One of the biggest benefits, and probably one of the most talked about provisions in this legislation, is the $7,500 tax credit to first time home buyers. Tax breaks are all well and good, but they have to be paid for somehow. While first time home buyers are getting a break, second home sellers will be paying for the $15.1 million dollars in tax cuts.
Up until the new legislation went into effect last week, homeowners could exclude up to $250,000 taxable profit on the sale of their home if they’re single taxpayers and $500,000 if married filing joint returns. The catch being, they had to live the in house as their primary residence for two of the five years before it is sold.
Many second home owners took advantage of this by moving into a property that was once a rental or vacation home, live there for two years prior to selling and benefiting from the tax-free profit.
With the new legislation, owners selling on or after January 1, 2009 will have to factor out the period when the property was still a rental or vacation home and pay taxes on that portion of the profit.
Jim and Joan are in their 50s and next January buy a vacation home for $200,000. Ten years later, they retire, sell their old principal residence and make the vacation home their new principal residence. Fifteen years after that, Jim and Joan, now in their 80s, move to an assisted-living community and sell the vacation-turned-primary-residence for $700,000. That nets them a gain of $500,000.
Under pre-housing bill statute, Jim and Joan wouldn’t face any tax on the entire $500,000 gain. The new law, however, means that Jim and Joan can exclude only 15/25, or 60 percent, of the gain. That would give them $300,000 of nontaxable property sale profit and $200,000 upon which they would owe long-term gain taxes.
As you can see, the new legislation significantly affects second home owners and their retirement strategies. The second home market has remained strong in the last few years, but this may change dramatically in the near future….something congress may not have intended.
If you own Huntsville real estate and are in the middle of converting your second home to your main residence, you could be out of luck. If you don’t have enough time left in 2008 to meet the two year lived-in rule and sell the property, when you do sell next year, you will pay.
If you need to sell your second home before January 1, 2009, give us a call at 256-508-0211. We will help you get the highest price for your Huntsville real estate before the end of the year!
With the housing market in a decline, and foreclosures on the rise, many people have the idea that buying a foreclosure could be the deal of a lifetime.While it’s possible to find a house in foreclosure for less than market value, making this kind of purchase is not a good idea for the real estate novice.Huntsville, Alabama real estate agent Mike Manosky offers professional advice to consider so that supposed “unbeatable deals” don’t turn into quick and painful losses.
Preparing A Bid
Check with a local real estate agent before making a bid.The mortgage company wants to cover the balance on the loan plus any expenses they might have.If the home in question was overfinanced, however, or the market has dropped in that area, this foreclosure property might not be a bargain.
Foreclosures are usually sold “as is.”Inspecting the property before making an offer is a vital step.If it isn’t possible to do an inspection first, include a provision in the contract that allows for an inspection right away.
Calculate the Cost
List the needed repairs and their costs.If the seller isn’t willing to pay for the repairs, have a contractor provide an estimate and timeframe. If a contractor isn’t immediately available or if repairs will take an extended amount of time, a loss could occur.
Flipping Property
For those planning to buy a home at a low price, make the necessary repairs, then quickly sell it at a profit, remember this is often easier said than done.Before jumping into this commitment:
1. Know the Market.Don’t put more cash into a home than is feasible to get back.Contact an agent that’s familiar with the local real estate market for help.
2. Have a Reliable Contractor.Every month the house isn’t occupied adds another out-of-pocket expense for the flipper.Can a three or four month delay to complete repairs be tolerated financially?
3. Consider Commissions & Fees. The seller typically pays for commissions so those should be built into any offer.Also, sellers don’t normally get their original asking price.Leave some room for negotiating.
Buying a foreclosure isn’t for everyone.Those who don’t know what they’re doing can quickly lose money.Before taking on this task, talk with a qualified agent familiar with the market.
For additional information or media interviews, please contact Mike Manosky at (256) 508-0211 or via email at Mike@MoveToHuntsville.com.
Skeptics thought the Internet would be the extinction of the real estate agent. Let’s face it, all the information in the world about how to buy and sell a house is at your finger tips. So why hire a real estate professional to represent you in the purchase or sale of your Huntsville home, when you can save the big fat commission they charge and do it yourself. If you have asked yourself this question, you are not alone. Here are the Top 10 Reasons To Hire A Huntsville Real Estate Professional, compliments of About.com:
1. Education & Experience
Most people buy or sell homes 2-3 times in their lives. Many Huntsville real estate professionals are involved in buying and selling real estate 2-3 times a month. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. You don’t need to know all there is to know about buying or selling real estate, you just need to hire the people that do. Hire someone with more experience and education than you that can help you get the best possible deal and save you precious time and money.
2. Agents are Buffers
If you are a buyer, agents will insulate you from builder representatives and listing agents, who can be piranhas when going after a sale. And if you are a seller, your agent will weed through the ‘lookie loos’ and bring you only well-qualified buyers. Real estate professionals save you time…and as they say, ‘time is money.’
3. Neighborhood Knowledge
Your neighbor may know that the people who sold the house down the street were asking $350,000, but your Huntsville real estate agent will know that the house actually sold for $295,000 and paid $5,000 of the buyer’s closing costs after being on the market 45 days.
4. Price Guidance
Your real estate agent is able to guide you through the decision making process to help you make the right choice for yourself and your family. Whether a buyer or seller, agents are able to provide you with the data you need to choose a correct price and then put together a negotiating strategy based on market supply, demand and conditions.
5. Market Conditions Information
Real estate professionals can also provide you with market data such as price per square foot, median and average sales prices, days on market and list/sell ratios that will have a bearing on your buying and selling decisions.
6. Professional Networking
The network of other professionals known by real estate agents, many of whom provide services that you will need to buy or sell, can be invaluable. Isn’t it better to have a service provider, who is known for quality and professionalism, recommended to you than having to pick someone out of the yellow pages?
7. Negotiation Skills & Confidentiality
Top producing real estate agents are skilled negotiators, not just messengers delivering paperwork to a buyer or seller, who are able to remove themselves from the emotion of the situation…and be assured, buying and selling a home is emotional! They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential from competing interests.
8. Handling Volumes of Paperwork
Purchase Agreements in the 21st Century are 10 pages or more and include state and federally mandated disclosures which can be overwhelming and confusing to the inexperienced. One omission or mistake could land you in court or cost you thousands of dollars.
9. Answer Questions After Closing
Issues have a habit of cropping up after closing…things such as taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices. Your real estate professional is there to answer questions, provide documentation and help clear up questions. You won’t be left out in the cold to handle issues by yourself.
10. Develop Relationships for Future Business
Referrals are the basis of am agent’s success. Your real estate professional will provide you with ongoing market updates, news and information. Keeping you informed and staying in touch will help insure your repeat and referral business.
Bottom line, Huntsville real estate agents are highly skilled, knowledgeable professionals. They will help you sift through the mountains of information you find on the Internet and make sense of it in order for you to make good buying and selling decisions.
Learn more about Huntsville real estate at MoveToHuntsville.com or give us a call for more personal service, 256-508-0211
President Bush signed into law this week The Housing and Economic Recovery Act. This is the most sweeping change to housing reform since the New Deal of 1934. It is designed to assist more Americans invest in home ownership and shore up the faltering housing and mortgage markets. Like any legislation, it comes with the good and the bad. I encourage you to write your Congressmen to see if we can get legislation to revoke some of the bad. For example, effective October 1, 2008, FHA will increase the minimum required down payment from 3% to 3.5% for Huntsvillehome buyers. The legislation also calls for the elimination of seller down-payment assistance programs such as AmeriDream and Nehemiah by October 1, 2008.
As of July 14, 2008, upfront MIP premiums became risk-based on credit scores and the annual premium increased across the board. Instead of the original plan of making FHA loans more affordable for potential Huntsville home buyers; the new legislation is doing the exact opposite and makes it more expensive.
Details of the Housing and Economic Recovery Act:
Here are some key provisions of the Housing and Economic Recovery Act that most affect Huntsville home buyers:
GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008). View 2009 FHA and GSE loan limit estimates (PDF)
Everywhere you look, headlines say the housing market is in a free-fall, foreclosures are rising at an alarming rate, and mortgage money is so tight that buyers can’t get a home loan at any price. 
According to a recent NAR survey, nine out of 10 Realtors® said their clients are interested in energy efficient features of green homes and the potential cost savings of such features. An overwhelming 90 percent agreed there will be even more interest in green building practices a year from now. 
Professional advice and assistance can make the difference between “Wow!” and 
You have probably heard, President Bush recently signed into law the Housing Rescue and Foreclosure Prevention Act. This is the most comprehensive housing bill to be enacted in over a decade. The bill is designed to help more buyers of Huntsville real estate realize their dreams, as well as, boast the struggling housing and mortgage markets.
Preparing A Bid
Skeptics thought the Internet would be the extinction of the real estate agent. Let’s face it, all the information in the world about how to buy and sell a house is at your finger tips. So why hire a real estate professional to represent you in the purchase or sale of your Huntsville home, when you can save the big fat commission they charge and do it yourself. If you have asked yourself this question, you are not alone. Here are the Top 10 Reasons To Hire A Huntsville Real Estate Professional, compliments of 
As of July 14, 2008, upfront MIP premiums became risk-based on credit scores and the annual premium increased across the board. Instead of the original plan of making FHA loans more affordable for potential Huntsville home buyers; the new legislation is doing the exact opposite and makes it more expensive.