Monday, September 28, 2009

I moved...

...and I forgot one of the first rules in moving: Leave a forwarding address.

Join me at my new pad and be sure to change any bookmarks you have.

Thursday, September 3, 2009

August Hamilton County Market Statistics

All of Hamilton County
All active, residential listings as of 9/2/09: 2,803
Pending or contingent listings (under contract) as of 9/2/09: 418
Residential listings closed (sold) during August 2009: 295
Number of months to sell current actives at August's sales pace: 9.5

Hamilton County, under $100,000
Active, residential listings: 582
Pendng or contingent listings: 104
Residential listings closed during August 2009: 91
Number of months to sell current actives at August's sales pace: 6.4

Hamilton County, $100,000-200,000
Active, residential listings: 1,041
Pendng or contingent listings: 208
Residential listings closed during August 2009: 130
Number of months to sell current actives at August's sales pace: 8.0

Hamilton County, $200,000-400,000
Active, residential listings: 785
Pending or contingent listings: 90
Residential listings closed during August 2009: 55
Number of months to sell current actives at August's sales pace: 14.3

Hamilton County, over $400,000
Active, residential listings: 396
Pending or contingent listings: 15
Residential listings closed during August 2009: 19
Number of months to sell current actives at August's sales pace: 20.8

Wednesday, August 26, 2009

How to buy a house in 25 easy steps - Part the last


You've picked out your title company, insurance company and you've stayed on top of the process. Now what?

21. Schedule your closing. Eeeek, we're getting close now (no pun intended). Your contract will specify a closing date. If you don't close by that date, technically the contract is void. Nobody wants that (usually). Try to get your closing scheduled for at least 2-3 days before then. If anything unforeseen comes up, you'll hopefully have time to get it resolved before you have a stroke.

22. Decide whether you want title insurance. I mentioned before that your lender will require a mortgage holder's policy. That benefits them alone. If you want any assurance that no one is going to come back and say that they inherited your house 30 years ago and never sold it to those crazy people that moved in later (you know, the ones you bought it from), you are going to want an owner's title policy. The first policy is the one that costs the most, the second one (yours) is available for a fairly nominal cost. Do yourself a favor and buy title insurance.

23. Review the settlement statement, also known as the HUD-1. This is a standard government issued form, so no matter where you live, it will look the same. Go over it with your Realtor to make sure that anything the seller agreed to pay is being charged to them and that your earnest money has been correctly credited. Also make sure that your lender closing costs are the same as what you agreed to when you first applied for the loan. If there are any changes needed be sure to contact your lender and the title company to get things corrected. Lastly, look at the last line on the left hand side of the first page. It will tell you the cash due at closing down to the penny. You will need certified funds in that exact amount made out to the title company. In some cases, the lender or seller may require you to wire the funds that day.

24. Do your final walk through. You'll go back to the house with your Realtor 1-2 days before closing. The purpose of this visit is just to make sure that nothing significant has changed with the condition of the property since you made the offer. You know, like trees falling through the roof, chandeliers taken down, holes in walls, things like that.

25. Show up for the closing, cashier's check and driver's license in hand, ready to sign away your first born. You may want to do a trial run by signing your name just as it appears on the contract about 422 times, just for practice. And don't pass out when you see the sheet that shows the total amount you are going to pay over the course of the next 30 years. Fair warning - it isn't pretty.

Congratulations! You are now the proud owner of your very own home. No one can tell you that you can't paint it purple*, no one is going to raise your rent every year**, no one can tell you that you aren't a grown up now***. You've done it!

*Unless your homeowner's association or local historical district says so
**Unless you got an adjustable rate mortgage - don't do it
***Except your mom

Shout out to Julie - thanks for lending me the picture of your house. I won’t tell people that I made it look even purpler if you won’t.

Tuesday, August 25, 2009

How to buy a house in 25 easy steps - Part IV

You have a binding agreement, you've done your inspections and either re-negotiated the contract or decided to live with the house, warts and all. What's next on the agenda?

16. Pay for your appraisal. Your lender or another third party will order an appraisal from a licensed appraiser. Both the appraisal and the home inspection will usually need to be paid for up-front by you. The appraisal is a double check for your lender. They don't want to lend more money on a house than the house is worth. The appraiser comes in and puts in his two cents about whether or not s/he thinks the house looks good enough for the money you (or actually the bank) is putting into it. In some places, you'll also have a survey done, again, something you would pay for up front. In practice, this is not required and is rarely done in Chattanooga unless there is some type of property line dispute.

17. Honestly, there isn't much for you to do at this point. You'll need to start shopping for home owner's insurance - also called hazard insurance. Check with the company that has your auto and/or renter's insurance, you can often get discounts for having several policies together. Once you have decided on a policy, submit the agent's contact info to your lender. At least around here, you won't pay for the policy yourself right now.

18. Pick out a title company. These are the people who will handle the actual closing paperwork. They will also check out the title to the property and make sure there are no liens or back taxes owed. The title company will also provide a title insurance policy which protects the mortgage holder in the event that a previously unknown lien comes to light later on. For many foreclosures, the choice of title company may be somewhat out of your hands. Most will have already had the preliminary title work done and paid for by the seller. There isn't usually a good reason to have it done again so you might as well use what someone else has already paid for.

19. Start putting all that new furniture you're going to need on your credit card Avoid making any large purchases during this time. You have a pre-approval but right now your loan is going through the underwriting process which means that all of your financial actions are being scrutinized by either a computer or a human number cruncher. Either way, you are going to want to look like a good credit risk.

20. Check in with your Realtor and lender every 3-5 days just to make sure everything is on track. You'll have anywhere from 2-6 weeks of dead time between your contingency removals and closing. You don't want to get within a couple of days of your contract closing deadline only to find out that someone has been waiting for 3 weeks to hear back from you on something that can't be taken care of in time. Say things like "Just wanted to make sure the title work has been ordered" or "Have we heard back from underwriting yet?" Makes you sounds like a person who is really on top of things and who will not be trifled with.

Current Interest Rates: August 25, 2009

CONVENTIONAL

30 yr fixed – 5.00% APR5.135% 360 P&I Payments @ $1073.64

15 yr fixed – 4.50% APR4.727% 180 P&I Payments @ $1529.99

- based on $200,000 loan and excellent credit

GOVERNMENT

30 yr FHA/VA fixed – 5.125% APR 5.967% 360 P&I Payments @ $1088.97

- based on $200,000 sales price

THDA

Great Rate – 5.20% APR – 5.762% 360 P&I Payments @ $540.63

Great Advantage – 5.50% APR– 6.075% 360 P&I Payments @ $556.13

Great Start –5.80% APR – 6.390% 360P&I Payments @ $574.71

-based on $100,000 sales price


Rates courtesy of Sarah Suits, for more information & details call or email:

Sarah_Suits@UCBI.com 423-339-5463

Saturday, August 8, 2009

How to buy a house in 25 easy steps - Part III

OK, so you've found the house of your dreams, you're pre-approved for a mortgage, you have a good Realtor (like me!) on your side. What's next? 11. Writing the offer. This step really deserves its own post (which it will get one day).

12. Write a check for earnest money. Earnest money is really just a deposit which lets the seller know you are "earnest" about going through with the deal if you eventually come to an agreement. Earnest money can vary from $0 up to 10% of the purchase price or more. For Chattanooga real estate, $500-1000 is typical although cash buyers are often asked for 10% as a sign that they actually have the cash. The amount of the earnest money and who holds it is a part of the offer and is a negotiable point. If you back out of the contract without exercising one of your contingencies, the earnest money goes to the seller. If you get to closing, the earnest money is credited toward the cash you need to bring to close.

12. Negotiating. You think they should leave the pool table, they think you should pay $20,000 more. That's where negotiating comes in. Decide what you are willing to give in on and what you aren't. Counter offers can go back and forth almost indefinitely. Once one of the parties agrees to the last offer/counter offer, the receiving party is notified. The date of that notification is the "binding agreement date" or BAD (how's that for a great acronym?).

13. Congratulations! You have a binding agreement! Now comes the fun part. Your contract will call for certain things to be done within a certain number of days of the BAD. First things, your earnest money will be deposited into the broker's escrow account if it hasn't already but that will go on without your involvement.

14. Next, you will need to make formal application with your lender if you haven't already. You may only have a preliminary approval which requires you to submit additional paperwork or information. If that's the case, get that stuff turned in ASAP. If you miss any of the deadlines in your contract, the seller could choose to terminate it based on a timeline default.

15. Arrange for a home inspection. This isn't a requirement but I always strongly recommend it. Almost all houses will have something wrong with them, even newly built ones, so don't freak out just because your inspector finds a long list of things s/he thinks should be corrected. Take a look at the list and decide which items are total deal breakers, which ones you'd like the seller to repair & which ones you are willing to live with - it's almost entirely up to you. Your contract might specify a pre-agreed repair allowance. The seller has agreed up-front to do a certain dollar amount in repairs. If this is the case, there is no reason NOT to ask for repairs that will cost up to that amount. If you don't have anything in the contract for this, which is usually the case in foreclosures and other distressed sales, you will need to decide whether you want to re-negotiate or walk away from the deal.

How to buy a house in 25 easy steps - Part II

Click here for part I of this series

Done with steps 1-5? Are you ready to actually start looking for your new home?
Nope, not yet, false alarm.

6. Start thinking about what type of loan programs you might qualify for. Are you a veteran? First time home buyer? Are you flat busted broke or have you been saving since elementary school? All of these things can influence your next step...

7. Find a lender. Your Realtor can give you some possible connections. Is it necessary to use someone your Realtor refers? Absolutely not, but even if your Realtor pushes you in a certain direction don't assume that there is some nefarious goings on with two people conspiring to drain you of your cash. The reality is that your Realtor and lender are going to have to work closely together and if they already have a good working relationship your purchase may very well go more smoothly and quickly. In addition, your Realtor might be able to steer you toward a lender who has the type of loan program that is best for you (or someone who has the best variety of programs out there).


8. Work with your lender to determine what your budget will be. Now is where we start thinking about the actual dollar amount of your purchase. Be sure to keep in mind how much you are comfortable spending each month, not the maximum for which you qualify. Your loan originator will give you a pre-approval letter that will likely be required when you eventually submit any offers.

9. You have a lender and pre-approval, you have a budget, you have a Realtor, are you ready to look? At long last, yes. If you want to search on your own you can do so but if you come up with too many possibilities a good Realtor (like me!) can do more detailed searches to narrow down your choices and keep things from becoming overwhelming. Try not to be too specific, many buyers find that the home they eventually fall in love with doesn't have everything they originally said they wanted.

10. OK, you've found the house of your dreams - or at least the house at the beginning of your dreams. Now what? It's time to make an offer. The thing that strikes fear in the hearts of prospective home buyers the world over. It's that little piece of paper (or 40) that binds you to the biggest purchase you'll probably ever make. Makes you a little nauseous huh?

Next up, what happens after the offer...

Friday, August 7, 2009

How to buy a Chattanooga house in 25 easy steps - Part I

I work with first time home buyers quite often and most are intimidated (to say the least) by the home buying process. Here's a little secret: it's really not that hard. Do your homework beforehand, choose a Realtor (like me!) and a lender you can trust and then, barring something strange happening, you'll likely go from renter to homeowner with as little stress as possible.

This is part I of my series on how to do just that: Chattanooga Real Estate 101

1. Unless you have the purchase price of a house hidden in your mattress, you are going to need to get your credit in order. Click here for more information about how to do this. Start on this at least 3-4 months before you are going to be looking to buy. You often will find errors on your credit report that can take a while to be corrected. You don't want to be scrambling to fix these things while a mortgage broker is staring you in the eye.

2. Make a list of "must-haves," "like-to-haves," & "must-not-haves."
Do you have a Great Dane, an Irish Wolfhound, a Husky and a Chocolate Lab? You're probably going to have to have a fenced yard. If, however, Fido is a Pomeranian, that fenced yard might be nice to have but not essential.

3. Think about what areas you might like to live in. Interested in a historic home? Check out some of my blog posts about Chattanooga's historic neighborhoods. Consider where you work, where your kids go to school (or where you'd like them to), what amenities you want close by, what kind of vibe you'd like your new neighborhood to have, etc. Your must-haves & must-not-haves will factor into this. If your main concern is wooded privacy and room to spread out you probably shouldn't be looking in Highland Park. If, on the other hand, you want to be in the middle of Chattanooga's nightlife, a Market Street condo might be the way to go.If you don't know anything about Chattanooga or its real estate market, a good Realtor (like me!) can help you narrow down your search.


4. Think about what your budget should be. In this case, think of it in terms of a monthly payment, not a purchase amount (we'll get to that part later). Don't try to decide the most you want to pay, decide what you are comfortable paying each month. Are you going to be cooking steaks in your new kitchen or throwing ramen noodles in the microwave? You also need to realize that the monthly payment on the loan isn't going to be your only expense. There will also be property taxes, home owner's insurance (sometimes called hazard insurance), mortgage insurance if you aren't putting down a 20% down payment, not to mention potential repairs. Budget tip: Looking outside the city limits can sometimes stretch your dollars because you won't be paying city property taxes.

5. See, this isn't that hard so far! Your next step is to find a Realtor - luckily, if you're in the metro Chattanooga/NW Georgia area you can go ahead and check this one off your list by going here. If you live in Kalamazoo, you've got some looking to do. What should you be looking for? Number one: someone who answers the phone. I know it sounds simple but you would be surprised how hard it can be to get someone to return a call. Number two: someone who knows the area. Number three: someone who isn't the name on the sign sitting in the yard of a house you think you might like. Chances are, unless it is a limited service listing like some of mine, that person is working for the seller. It usually doesn't cost you anything more to have your own agent looking out for your best interests so why not make sure you have your own representation?

Stay tuned for Part II of Chattanooga Real Estate 101...

Wednesday, July 22, 2009

Focus on Highland Park/Ridgedale: Chattanooga's Historic Neighborhoods


Bounded by Holtzclaw and Willow, McCallie and Main, Highland Park surrounds Tennessee Temple University. Several Temple Alumni and home restorers have been fixing up these houses over the late 1990's and early 2000's. The bulk of the homes on Chamberlain and Duncan have been renovated, nearly as many on Bailey and Union have been restored. These homes command a premium price, particularly those with original historic details. The Highland Park Neighborhood Association sponsors a tour of homes each year. The neighborhoods of Highland Park, Ridgedale, Oak Grove, Orchard Knob & Bushtown are often collectively referred to by Chattanoogans as Highland Park.

Bordered by Willow, Missionary Ridge, McCallie & Main, Ridgedale was originally conceived as an addition to Highland Park but it has now evolved into its own individual neighborhood complete with its own nighborhood association. The residential area between Dodds Avenue, Missionary Ridge, Main & 23rd Streets are also part of Ridgedale.

Tentative plans for a new park at the border between Highland Park & Ridgedale neighborhoods are currently being considered.

Although the Victorian was the most popular design for much of Highland Park's building period, the Four Square and Bungalow designs are the hallmarks of the Highland Park neighborhood. Many homes share a Craftsman or what I call a "transitional Craftsman" style, meaning that there are Craftsman elements without necessarily having all the elements of a true Craftsman home.

The heyday of this area was between its original development in the late 1800's, early 1900's and the 1950's. Urban blight and the demographic move to the suburbs claimed the Highland Park area as a victim. Crime increased and many of the once proud homes were subdivided into multi-family rentals. In the early 1990's, as many Chattanoogans started to become aware of Chattanooga's rich architectural history, several Highland Park residents - most notably Ginnie Tatum - decided to take back their neighborhood and formed a neighborhood watch from which the Highland Park Neighborhood Association was born.

Ginnie Tatum recently passed away and while she may be gone, the work she began is certainly continuing with the addition of more and more renovated historical gems and a thriving neighborhood.


Hamilton County Market Statistics

All of Hamilton County
All active, residential listings as of 7/20/09: 2,838
Pending or contingent listings (under contract) as of 7/20/09: 725
Residential listings closed (sold) during June 2009: 333
Number of months to sell current actives at June's sales pace: 8.5

Hamilton County, under $100,000
Active, residential listings: 620
Pendng or contingent listings: 139
Residential listings closed during June 2009: 85
Number of months to sell current actives at June's sales pace: 7.3

Hamilton County, $100,000-200,000
Active, residential listings: 1,050
Pendng or contingent listings: 195
Residential listings closed during June 2009: 140
Number of months to sell current actives at June's sales pace: 7.5

Hamilton County, $200,000-400,000
Active, residential listings: 769
Pending or contingent listings: 103
Residential listings closed during June 2009: 89
Number of months to sell current actives at June's sales pace: 8.6

Hamilton County, over $400,000
Active, residential listings: 399
Pending or contingent listings: 18
Residential listings closed during June 2009: 19
Number of months to sell current actives at June's sales pace: 21

Tuesday, June 9, 2009

ArtsMove Chattanooga




For artists considering a change of scenery, take a look at Chattanooga.

ArtsMove is a newly expanded program which provides assistance to artists moving to the Chattanooga urban area from at least 50 miles away.

Click here for more information.

Chattanooga was recently named #2 art destination among mid sized cities by AmericanStyle magazine and the city is committed to encouraging local art and artists

Monday, May 18, 2009

Interest Rates for May 18, 2009

CONVENTIONAL

30 yr fixed – 4.5% APR 4.629% 360 P&I Payments @ $1013.37

15 yr fixed – 4.25% APR 4.474% 180 P&I Payments @ $1504.56

- based on $200,000 loan and excellent credit

GOVERNMENT

30 yr FHA/VA fixed – 4.625% APR 5.242 360 P&I Payments @ $1007.17

- based on $200,000 sales price

THDA

Great Rate – 5.55% APR – 6.131% 360 P&I Payments @ $562.11

Great Advantage – 5.85% APR – 6.446% 360 P&I Payments @ $580.56

Great Start –6.15% APR – 6.760% 360P&I Payments @ $599.54

-based on $100,000 sales price


Rates courtesy of Sarah Suits, for more information & details call or email:

Sarah_Suits@UCBI.com 423-339-5463

Flat Fee or Limited Service Listings

With the downturn in the economy in general and housing in particular, many sellers are understandably looking for creative ways to maximize the cash they will net from the sale of their home. Many find themselves considering a "For Sale by Owner," or FSBO. The problem with this approach is that the vast majority of buyers search online or through buyer's agents when looking for a new home. While there are many services that will publish FSBO's to a website, the fragmentation of the different sites means that your potential buyer is trying to find a needle in the proverbial haystack. Buyer's agents, when looking for homes for their clients, rarely search FSBO's unless they have personally seen a home that meets that client's needs. Smart sellers realize that the fastest and easiest way to sell their home (often for the highest price) means a listing on the local multiple listing service (MLS) and the assistance of a buyer's agent.

How can an experienced seller capitalize on their own expertise? One way is through so called "flat fee," "limited service," or discount listings. The most accurate of these terms is "limited service." You truly get what you pay for and the services provided by the typical listing broker certainly has its place. However, for the homeowner or investor who has experience with the selling process and doesn't necessarily need those services, paying a flat fee instead of a seller's agent commission in order to have their home placed in the local MLS may be the best and most cost effective option.

Even though we are a locally owned Chattanooga/NW Georgia area full service real estate brokerage, we recognize that some sellers want more options than all or nothing. Click here for more information including pricing and services offered. Click here to find out why a discount listing through Julia Odom & Southern Style Realty is preferable to choosing an out of town internet based company.

Wednesday, May 13, 2009

Sweet Diversity


May 14th, 5.30pm
South Chattanooga Recreation Center
1151 W. 40th St in Alton Park/St. Elmo.


Join me and the residents of District Seven for a sugar rush the likes of which have not been seen in Alton Park for lo these many years.

Hosted by the Chattanooga City Office of Multi-Cultural Affairs and Councilman Manny Rico, Sweet Diversity gives the residents of District Seven (Ridgedale, Alton Park & St. Elmo) a chance to show off their cultural heritage and culinary skills.

Sweet Diversity is free and open to the public. Individuals, neighborhood associations and community groups are welcome to take part in the festivities. Participants bring desserts, distribute recipes, and display information about their cultural & ethnic background.

(Pictured: My soon to be famous pecan tartlets)


Tuesday, May 12, 2009

Hamilton County Market Statistics

All of Hamilton County
All active, residential listings as of 5/11/09: 2,663

Pending or contingent listings (under contract) as of 5/11/09: 486
Residential listings closed (sold) during April 2009: 226
Number of months to sell current actives at April's sales pace: 11.8 months

Hamilton County, under $100,000
Active, residential listings: 532
Pendng or contingent listings: 122
Residential listings closed during April 2009: 69
Number of months to sell current actives at April's sales pace: 7.7 months

Hamilton County, $100,000-200,000
Active, residential listings: 991
Pendng or contingent listings: 211
Residential listings closed during April 2009: 107
Number of months to sell current actives at April's sales pace: 9.3 months

Hamilton County, $200,000-400,000
Active, residential listings: 749
Pending or contingent listings: 136
Residential listings closed during April 2009: 45
Number of months to sell current actives at April's sales pace: 16.6 months

Hamilton County, over $400,000
Active, residential listings: 396
Pending or contingent listings: 20
Residential listings closed during April 2009: 5
Number of months to sell current actives at April's sales pace: 79.2 months

Sunday, May 10, 2009

Is Now a Good Time to Sell?

I came across this article recently and found that it articulates very well the advice I've been giving my clients lately. Particularly this statement:

"It's a good time to sell if you're looking to upgrade your house," says Timothy J. Cabrera, president of Atlanta Interest Mortgage & Financial Group, "because there are so many opportunities to buy a larger home, and the financing rates are so favorable, and so we don't know how long they're going to stay at this level."

One of the things I've found recently is that entry level homes, many of which are competing with foreclosures and distressed homeowner's for buyers, may have lost some value, but very little in comparison with larger and higher end houses. The reason, in my opinion, is that many 2nd & 3rd level homeowners are sitting on the sidelines believing that they should wait to sell even if they want to trade up. This is creating a bottleneck of demand that is depressing the upper levels of the housing market far more than entry levels. For many of these homeowners, they might be better off selling their entry level home now at a slightly lower price than they would like while benefiting from ridiculously low interest rates and 2nd tier home prices which have fallen further than what they would discount their current home.

Here are some numbers that approximate the Chattanooga real estate market:

You purchased your home in 1999 for $90,000 at 7% interest with 100% financing. Your monthly payment is currently $600 (principal & interest only*). We determine that your home might have sold for a net price of $120,000 at the peak of the market but you decide to accept an offer of $108,000. You take the $18,000+ and use it to purchase a home that would have sold for $195,000 at the housing peak but which you are able to purchase for $160,000. Because you are able to get financing at 4.75% your new monthly payment is only $740 on a principal amount of $142,000 ($160,000 less the $18,000+ down payment you have from the sale of your previous home). You have "lost" $12,000 in appreciation on your first home ($120,000-108,000) but you've also "gained" $35,000 on the purchase of your second home ($195,000-160,000) while, at the same time, lowering your interest rate significantly.

This is a purely hypothetical example but it demonstrates the benefits that you may find if you are looking for a larger or upgraded home.

Another point made in the article is this:

"If you do decide to invest money in your house, do it for yourself. Don't spend a fortune only for the future homeowner, since spending $30,000 on improving your kitchen and assuming that will add $30,000 to the purchase price is, of course, a gamble."

Now is not the time to be making costly upgrades to kitchens & baths in the hope that it will increase the value of your home. The corollary of this statement is that, if you decide that you want to sell, DO spend small sums on upgrades and repairs that will make your home stand out among foreclosures and distressed homes which are often dated or in need of TLC. Repainting older cabinets, replacing hardware and worn laminate counter tops can be done inexpensively and will pay off with a quicker sale, if not necessarily a significantly higher sales price.

Contact me for more information about the Chattanooga real estate market or what you can do to get your home ready for selling.

*Sample payments above assume 30 yr fixed rate mortgage. APR will vary depending on individual lender fees.

Wednesday, May 6, 2009

Focus on Ferger Place: Chattanooga's Historic Neighborhoods

You may have already read my overview post on Chattanooga's historic neighborhoods. Now I'd like to take the time to look at a few neighborhoods in depth, beginning with Ferger Place.



Ferger Place is made up of only two main streets: Morningside Drive & Eveningside Drive and has been listed on the National Register of Historic Places since 1980. Ferger Place was one of the earliest examples of urban planning, even though, at the time it was built, the neighborhood was relatively rural.



Ferger Place was originally designed by Ferger Brothers Real Estate and most of the structures are good examples of bungalow or Craftsman style architecture. The term "bungalow" can be misconstrued to mean that the homes are smaller than average. Nothing could be further from the truth with regard to Ferger Place. Most Ferger Place homes are in the 2000-3000 square foot range. Certainly not a small home even in today's term and definitely grand for the period.


The small, pleasant neighborhood was in a relatively rural area upon being developed as the city’s first “restricted private park.” Surrounded by numerous farms, the entrance columns were erected with gates in order to keep farm animals from wandering into the area, making it one of Chattanooga's first gated communities. When entering Ferger Place today, one is still required to pass through the same stone, shingled-top entrance posts, just as people did back in 1910.


This community has, unfortunately, not been untouched by decay and many of the homes fell into disrepair over the course of the neighborhood's 100 years. Today, many of the structures have been lovingly restored to their former glory while understanding the needs of today's families. Click here for a list of properties currently available within Ferger Place.


Some information taken from Ferger Design.



Tuesday, May 5, 2009

Interest Rates for May 5, 2009

United Community Bank


CONVENTIONAL

30 yr fixed – 4.625% APR 4.755% 360 P&I Payments @ $1028.28

15 yr fixed – 4.25% APR 4.474% 180 P&I Payments @ $1504.56

- based on $200,000 loan and excellent credit

GOVERNMENT

30 yr FHA/VA fixed – 4.75% APR 5.370 360 P&I Payments @ $1021.88

- based on $200,000 sales price

THDA

Great Rate – 5.55% APR – 6.131% 360 P&I Payments @ $562.11

Great Advantage – 5.85% APR – 6.446% 360 P&I Payments @ $580.56

Great Start –6.15% APR – 6.760% 360P&I Payments @ $599.54

-based on $100,000 sales price


Rates courtesy of Sarah Suits, for more information & details call or email:

Sarah_Suits@UCBI.com 423-339-5463

Sunday, May 3, 2009

Historic Chattanooga Neighborhoods

There are numerous historic neighborhoods in Chattanooga if you like the character and soul of an older home.

The following is a brief introduction to some of the communities close to downtown and their progress in restoration:

Ft. Wood:
This is the community around the UTC area in Chattanooga. Most of the houses here have already been restored, and command top dollar. Several of these are being used as fraternity houses. There are also a couple of bed and breakfasts in this area. Click here for more information about Fort Wood.

Southside:
This area is the south part of downtown including Main Street and the area surrounding the Chattanooga Choo Choo and runs south down Broad St. Lots of interest and development has been initiated in the area recently and a new magnet school has spurred growth (the individual neighborhoods that make up the Southside area include Jefferson Heights, Cowart Place, & Ft. Negley)

St. Elmo: This neighborhood is located at the foot of Lookout Mtn, TN. Lots of larger 2-story homes and larger lots. Conveniently near Ruby Falls, the Incline and Rock City. There is a small group of shops and eateries including locally owned Umbra Essence Candles & Mojo Burrito at the entrance to the residential area. St. Elmo is one of several designated Historic Districts in Chattanooga with strict review guidelines for any exterior renovations.


North Shore
:
Just over the river from downtown, this community includes the homes north of Frazier Avenue, and between Barton Ave and North Market Street all the way up to Mississippi Ave, have a numerous bungalows and a few Victorians on rolling hills and twisty roads which lend charm and a few good views. Frazier Avenue and River Street have numerous shops and restaurants, although a few of the businesses have recently moved to larger quarters on nearby Manufacturer's Road. North Chattanooga, as this area is known, is one of the most sought after areas by urban hipsters and families alike. As such, property values are higher here than in almost any other area of the city.

Highland Park: Bounded by Holtzclaw and Willow, McCallie and Main, this neighborhood surrounds Tennessee Temple University. Several Alumni and home restorers have been fixing up these houses over the late 1990's and early 2000's. The bulk of the homes on Chamberlain and Duncan have been renovated, nearly as many on Bailey and Union have been restored. These homes command a premium price, particularly those with original historic details. The Highland Park Neighborhood Association sponsors a tour of homes each year. The neighborhoods of Highland Park, Ridgedale, Oak Grove, Orchard Knob & Bushtown are often collectively referred to by Chattanoogans as Highland Park.

Glenwood: Located north of McCallie Avenue and running North on Dodds Avenue towards Memorial Hospital, it features large stately Dutch Colonial homes, surrounded by bungalows, with smaller Craftman cottages dotted throughout the neighborhood. Many of the homes have been restored, and they have an active community association which sponsors an annual jazz festival. The local Greek Orthodox church also puts on a Greek festival every year.

Ferger Place: A very small "U" shaped neighborhood with very large well maintained homes that go for top price. It's just across Main Street from Highland Park. Ferger Place is another Chattanooga neighborhood listed on the National Register of Historic Sites.

Missionary Ridge: Numerous stately homes line Missionary Ridge. South Crest & North Crest run the length of this community and afford a very scenic drive. They have a very active neighborhood association. One thing that stands out to visitors is the presence of both cannon and plaques marking various significant Civil War sites. The Battle of Missionary Ridge was one of the most important battles of the Civil War and the history of "The Ridge" is always visible.

Ridgedale: Located 3 miles from downtown, this is a community of homes filled with late Victorian, early Craftsman cottages and bungalows. It is located between Highland Park and Missionary Ridge and to the south of Glenwood. Homes are just beginning to be restored over the past few years. Bargain hunters seeking a deal have been snapping up homes along Bailey Avenue and the first few blocks bordering the Highland Park community. Back in the 20's and 30's the portion of Dodds avenue running through Ridgedale was lined with stores and it was the shopping district before the advent of malls and urban sprawl. Some prominent Dodds Avenue businesses now include: The Barking Legs Theater, the longtime business of the Associated Fabric Shops, & Cafe Lamont. The McCallie School for Boys is also a prominent landmark within Ridgedale.

Oak Grove: This community lies between 23rd St and Main Street, and between Dodds and Ferger Place. The northwest corner of the neighborhood that borders Main Street has a small Mexican restaurant & grocery, Tienda Jalisco that is frequented by local residents. This area hopes to benefit from the revitalization of Main Street and perhaps get overflow growth from Highland Park.

The City of Chattanooga has a complete listing of all neighborhood associations throughout the city.

Saturday, May 2, 2009

Current Interest Rates

Rates as of April 28, 2009

United Community Bank

CONVENTIONAL

30 yr fixed – 4.375% APR 4.503% 360 P&I Payments @ $998.57

15 yr fixed – 4.25% APR 4.474% 180 P&I Payments @ $1504.56

- based on $200,000 loan and excellent credit

GOVERNMENT

30 yr FHA/VA fixed – 4.75% APR 5.370 360 P&I Payments @ $1021.88

- based on $200,000 sales price

THDA

Great Rate – 5.55% APR – 6.131% 360 P&I Payments @ $562.11

Great Advantage – 5.85% APR – 6.446% 360 P&I Payments @ $580.56

Great Start –6.15% APR – 6.760% 360P&I Payments @ $599.54

-based on $100,000 sales price


Rates courtesy of Sarah Suits, for more information & details call or email:

Sarah_Suits@UCBI.com 423-339-5463


Friday, May 1, 2009

Chattanooga Outdoors

From hang gliding to hiking, rock climbing to river running, Chattanooga has everything an outdoor enthusiast or extreme sports lover could want. A perennial favorite of Outside Magazine, Chattanooga has a lot to offer the outdoorsman (or outdoorswoman as the case often is).

White water rafting/kayaking
There are lots of options for Chattanoogans but the A1, end all, be all is the Ocoee River. Home of the 1996 Olympic white water events, the Ocoee has long been a favorite among Hamilton County residents. It also draws day visitors from North Carolina, South Carolina & Georgia. It's just that good. Camping facilities and gorgeous hiking trails along with the tamer Hiwassee River (inner-tubing can sometimes be as fun as surfing the whitewater) are nearby for the waterlogged.

Hang gliding
Lookout Mountain is the premier place in the South East for gliding effortlessly over a valley floor. Lookout Mountain Hang Gliding is that place. For the less experienced, tandem flights are available. If you're afraid of heights, DON'T LOOK DOWN. On the other hand, if you want an experience you will never forget, suit up and run off the edge of a mountain.

Rock Climbing
With the varying stone makeup of the surrounding mountains, Chattanooga has become a mecca for climbers with some calling Lookout Mountain's Sunset Rock the birthplace of sandstone climbing in the South. There is no doubt that Chattanooga boasts some of the best climbing in the region with a number of indoor climbing gyms to get your fix even when the weather doesn't cooperate.


Chattanooga Images

Click here for a great slideshow of iconic and modern Chattanooga images by Robert Lz including Moccasin Bend, the Tennessee River Gorge, Point Park, Lookout Mountain, the Hunter Museum, the Tennessee Aquarium, the Walnut Street & Market Street Bridges, the National Cemetery, Ross' Landing, the Tivoli Theatre, the Pickle Barrel, downtown brickwork sculptures, the Southern Railway Building, the South Side, the North Shore, Coolidge Park, the Southern Belle riverboat and, of course, the Chattanooga Choo Choo.

First Time Home Buyer Alert!

THDA, Tennessee Housing Development Agency, has introduced their anticipated second mortgage program. The program is designed to be used in conjunction with the stimulus tax credit for first time home buyers. The purpose is to assist potential home owners by providing a no interest loan which will enable many first time home buyers to purchase a home with little or no cash out of pocket. THDA recommends that borrowers use their tax credit to pay the loan off, when the credit refund is received.

Some details:

The THDA second mortgage is for the down payment. It is only available with an FHA loan closed with the THDA Great Rate or THDA Great Advantage programs.

The minimum credit score is 620.

THDA's maximum income & purchase price limits apply.

The program is offered to first time home buyers.

If the borrower decides not to repay the second mortgage with their tax refund, payments can be made. The loan is interest free until June 1, 2010. At that time the loan will convert to a 10 year term with an interest rate 1% above the first mortgage rate.

For the THDA Great Rate program, the current interest rate is 5.55%.

For the THDA Great Advantage program, the current interest rate is 5.85%.

The second mortgage can be used for downpayment or for closing cost, but is in the amount of the 3.5% FHA minimum down payment. The second mortgage can be used with other sources of closing funds that are acceptable to FHA: gift funds, seller paid costs, and of course the 2% grant from the THDA Great Advantage program.

More details on THDA programs are posted here.

If you have any questions about eligibility for this program, please contact me for more information.

Reprinted with permission from Richard Smith, American Acceptance Mortgage, Inc Chattanooga, TN (888) 474-9920 x 15

Richard's blog

Buying a HUD Home in TN

Buying a HUD house, i.e. a home owned by the Department of Housing and Urban Development, is generally the same as buying any other home with a few key differences.



1. HUD homes are listed for a set amount of time, usually around 10 days, before any offers will be considered. At the expiration of this bid period, all offers received from owner occupants will be considered. If an acceptable offer has been received, the winner bidder will be notified and the home is then under contract assuming that all original paperwork is received by HUD within 48 hours of notification. If no acceptable offers are received, new bids will then be reviewed on a daily basis going forward. Any offers received before midnight of a particular day are considered to have been received at the same time. Non-owner occupant offers are not considered during the initial bid period. It is a federal crime to represent yourself as an owner occupant if you do not intend to occupy the home for a period of at least two years.


2. HUD allows 3% of the purchase price to be used for closing costs. This amount is already built into the price of the home and an offer for the full asking price which requests this 3% is still considered by HUD to be a full price offer.


3. HUD uses a numeric formula to determine whether or not to accept an offer. So called "low ball" offers will never be accepted. Contact me for more information on what types of offers will usually qualify as a winning bid. HUD reduces the price of its listings on a regular basis. The amount of these price reductions is, in almost all cases, 10% of whatever the original asking price was.


4. HUD homes are usually listed as being "insured," "insured with escrow for required FHA repairs," or occasionally "uninsured." What this means to the buyer is that, if you are using FHA financing, a home "insured" will not require any repairs. "Insured with escrow" will require some repairs as part of the conditions of sale. With non-HUD houses, these repairs would have to be completed prior to the closing of the sale. With HUD homes, the repair allowance amount, shown in the listing, is added to the amount of your loan and amortized into your monthly payment. After the closing of the sale, you will be required to complete these repairs and pay for them out of your pocket within a specified period of time - usually 90 days, although extensions are usually possible. Once the repairs are completed, the FHA appraiser will return to assess the repairs, making sure they have been done to FHA specifications. At that point, the homeowner will submit receipts for the work and will be reimbursed from an escrow account set up by your lender. If the total of the receipts is less than the amount in the escrow account, the remainder will be credited back to the balance of your loan. Any amounts over the escrow amount will not be reimbursed. If a home is listed as "uninsured," FHA financing is not available. These homes generally require fairly extensive repairs and should be considered by investors or by those who are comfortable tackling relatively long term projects. ***Not all FHA lenders are able to close an FHA loan with escrow***


5. HUD requires a $1000 earnest money deposit for most sales. For lower priced homes, $500 is acceptable. This earnest money check must be in the form of certified funds.


6. HUD is currently offering "$100 down payments" for buyers utilizing FHA financing. This program is subject to change or discontinuation, but for qualified buyers, your earnest money deposit may be the only out of pocket expense to you to purchase a HUD home! Compared to the 3.5-5%+ required for almost all other purchases, this could mean the difference between being able to afford the home of your dreams now or having to wait to save up a down payment.


7. HUD provides a "Property Condition Report" which assesses the overall condition of the home with a checklist of all structural, mechanical and, to some extent, cosmetic items in the home. You can find this report on any currently listed home by clicking here and searching by the address. This report is not a substitute for your own home inspection. Problems with plumbing or electrical systems are often shown simply as not functional without specifying the source of the needed repairs.


8. HUD does not provide utilities for prospective buyers to perform their inspections.The buyer must have any needed utilities turned on in their own name and must pay for any costs to do this. If the inspection will be performed from October-March, a $75 fee is required to cover the cost of re-winterizing the home after your inspection. In addition, your may not back out of a contract without forfeiting your earnest money due to required repairs unless the repairs are: A. structural and/or mechanical; B. were not immediately evident upon a visual inspection, and C. were not listed in the property condition report.


9. HUD requires a very specific pre-approval letter with very specific information from your lender before they will return a binding contract. This letter must be submitted within 48 hours of notification of acceptance and must be from a direct lender, not a mortgage broker. It is best to use a lender (and REALTOR) who is familiar with and has experience completing HUD transactions.


10. Only registered real estate professionals may show and sell HUD homes. Contact me for more information or to view a HUD home. Click here for a list of currently available HUD homes.