Raymond E Warren, CDPE, SFR

HUD Homebuyer's Seminar in Hixson, TN

2011-06-21T14:41:00.000-07:00

Here are the Ws:

When: Thursday, June 30th, 2011.
Where: Northgate Title Escrow - Conveniently located behind the Post Office beside Northgate Mall.
What: HUD Homebuyer's Seminar Who: Anyone interested in buying a home as a residence or an investment. Hopefully YOU!
What Time: 6:00 PM to 8:00 PM or until all your questions are answered.
Why: Because buying a home in the current economy should be an informed decision - Arm yourself for success.

The focus of this session will be "How to Buy a HUD Home in Tennessee." HUD homes are listed properties that are owned by the Department of Housing and Urban Development, a Federal agency. These homes can be purchased by either Owner Occupants or by Investors. You will learn all about HUD Homes and why they can be such a great value to you as your next home or as an investment property.

This Seminar is completely FREE

At the Seminar:

...You can talk with representatives of Northgate Title Escrow to answer any questions you have about Title Insurance, closing costs, the closing process, etc.
...You can talk with representatives of Community Mortgage about your financing questions, loan applications, underwriting process, and what is currently happening in the mortgage world.
...You can talk with representatives of Old Republic Home Protection about any home warranty questions you have.
...And you can talk with me about the current real estate market, agency questions, and the home search and buying process.

This is your opportunity to get a lot of valuable information quickly from the real estate industry professionals that are in the market everyday. We will also have some fun with light refreshments and some door prizes from our sponsors.

You can register on-line at my company website: www.UpwardRealty.com, or you can register by email at Info@UpwardRealty.com, or you can call my office at 423-847-8001 and ask to be registered.

Again, there is no charge or obligation created by attending this seminar.

Chattanooga Tennessee Broker Earns CDPE Designation

2011-02-18T09:00:00.000-08:00

Chattanooga, Tennessee (Grassroots Newswire) February 18, 2011 --Raymond Warren, Broker/Owner of EXIT Upward Realty has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In the Chattanooga area, there are thousands of homes currently in danger of foreclosing. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

“This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales,” said Warren. “It is so rewarding to be able to help sellers save their homes from foreclosure.”

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Raymond Warren with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys their credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors® helping homeowners in distress and handling short sales.

“Our goal is to educate as many people as possible so we can help as many homeowners as possible,” Charfen said.

For more information about EXIT Upward Realty, please call 423-847-8001. EXIT Upward Realty is located at 6726 Hixson Pike, Hixson, TN 37343.

Have you been thinking about a career in real estate? If so, check out this video.

HUD Homebuyer's Seminar in Chattanooga, TN

2011-02-09T09:30:00.000-08:00

If you are considering buying a home and would like to learn more about the process, you have a great opportunity coming up shortly. You are invited to attend a HUD Homebuyer's Seminar on March 3, 2011 right here in Chattanooga, Tennessee. The seminar will begin at 6:00 PM (EST) and end around 8:30 PM.

This seminar will be sponsored by Peoples Home Equity and EXIT Upward Realty. The location is the Peoples Home Equity office at 6650 East Brainerd Road, Chattanooga, TN 37421. Reserve your seat now by calling Shannon Lunn @ 423-591-9801 or by email to SLunn@ChattMortgage.com.

This is a great chance for you to get all your questions answered by local mortgage and real estate professionals who work in the current market everyday. There are lots of myths circulating in the marketplace and in the news. You need the facts and that is the purpose of this seminar. Before you venture into the current real estate market, arm yourself with the facts so you can be a knowledgeable consumer. Mistakes in the current market can be very expensive.

Raymond Warren of EXIT Upward Realty is a Local Listing Broker for PEMCO, Ltd. and markets HUD Acquired Properties in the Greater Chattanooga Area and 12 counties in Southeast Tennessee. The real estate industry has been an ever changing environment for the last 4 years, this is your chance to get your questions answered by an experienced Broker who is in the local marketplace full-time everyday.

Lori Dodd of Peoples Home Equity will be discussing the current mortgage market and answering your home loan questions. You will also be able to talk with Peoples Home Equity about your personal mortgage needs and get pre-qualified. Being pre-qualified is a requirement for HUD and banks selling distressed properties. Property owners like to know that a buyer is able to complete the deal.

Sponsors:
Peoples Home Equity, 6650 East Brainerd Road, Chattanooga, TN 37421, 423-591-9801.
EXIT Upward Realty, 6726 Hixson Pike, Hixson, TN 37343, 423-847-8001.

For Sale By Owner...Really?

2010-12-13T08:36:00.000-08:00

A few years ago, a fellow Realtor® bought a new car and instead of trading in her old car, she decided she would sell it herself. After all, she was a professional salesperson, how hard could it be? And, she could make more money that way...

Well, she went to the hardware store and bought the little "red and black" signs that would tell the world that her car is "for sale". She called the newspaper and placed the ads - of course she paid extra for the heavy borders, "New Listing" headings, and bold type. She put her phone number on the signs and taped them to her car windows. In 2010, she would have surely put an ad on Craig's List.

She was ready to pocket her pending financial windfall. After all, why should the dealer make all that extra money anyway. Anyone can sell a car and she knew that car better than anyone. Right?

If you have ever tried to sell a used car, you know what followed. Her life became selling that car. She soon was talking to everyone who ever thought they might want a car like hers (and many who just needed to be entertained). Most of the calls were from nice folks. But, those little signs and those bold ads do produce, they are like magnets in the world of crazy. There really are "tire kickers" out there, people who will look at and test drive lots of cars but seldom buy.

Some of the "not so nice" folks felt it was their obligation to see the car, drive the car, point out every flaw, educate her on the "current market", and basically tell her that she was crazy (a point she soon began to agree was right.) For some reason a few felt that they needed to point out to her that they had CASH! Somehow they felt that their cash was better than the dollars another person could bring from their bank or credit union. Therefore, she should take less because they had CASH.

Soon, she began to hate that car and wished she had left it with the dealer when she had the chance. Then in reflection one day the Realtor® in her came out, and she asked, "Why would anyone ever try to sell their own home?"

Selling your own home is much like selling a car, but with a lot more at stake. You do open your life to the world. The process can consume your life, because your are emotionally invested in your home. And, you have basically taken on a new full-time job. The longer the process takes, the more desperation sets in and the less firm you become in your resolve. And you begin to wonder about the safety of your family and yourself as you continue to allow strangers into your home and your life. You also realize some of these "buyers" are almost professional at negotiating. Also, everyone wants a good deal for themselves - not you.

Good Realtors® know how to deal with the different aspects of society, that is what we do everyday. We work to know the people we bring into your home. If we are smart, we only bring you qualified buyers, we don't introduce "tire kickers" into your home and your life. We recognize these characters and we don't waste your time or ours.

Our goal should always be to serve you, allow you to continue to live your life, and help you achieve a happy sale of your home. We are the buffer between you and them. We negotiate for a living and we do it on your behalf. We know what your home is really worth and we tell you, plus we tell the buyer when he wants to "steal" your equity.

If you are considering selling your home as a do-it-yourself project, all I can say is "For Sale by Owner...Really?"

I am in the market full-time, everyday, if you want to talk further then just contact me. Or, just give me a call at (423) 847-8001, just ask for Raymond.

Raymond Warren named HUD Listing Broker for PEMCO

2010-08-26T12:16:00.000-07:00

PEMCO, Ltd. a contractor for the Department of Housing and Urban Development (HUD) has named Raymond Warren, SFR of EXIT Upward Realty in Hixson, TN as a Local Listing Broker (LLB) for eleven counties in Southeast Tennessee.

Mr. Warren and EXIT Upward Realty will be a listing agent for HUD acquired homes in the Counties of Van Buren, Bledsoe, Sequatchie, Rhea, Meigs, McMinn, Bradley, Polk, Monroe, Roane, Hamilton, and Marion in Tennessee. As an approved listing broker for this region, EXIT Upward Realty will be responsible for marketing HUD homes in this area. The local brokerage will also be a resource for buyers interested in purchasing one of these homes. Selling agents interested in selling HUD homes will also be able to use Mr. Warren and his office as a resource for questions about these homes as well as the purchase process.

"We are excited about this opportunity to be a local resource for homebuyers and selling agents in the Greater Chattanooga Area and throughout Southeast Tennessee." stated Mr. Warren. "Our commitment to PEMCO includes not only the marketing of HUD acquired properties, but also conducting training for both interested homebuyers and sales training for licensed real estate agents throughout the region." Classes are expected to begin in the last quarter of this year. Information about the classes will be regularly posted on the company website (www.ExitUpwardRealty.com or www.UpwardRealty.com) as plans are completed for each session.

Hixson & Chattanooga, TN Real Estate For Sale - Tax Credit Reminder - April 30th is coming --- SOON!

2010-04-10T11:05:00.000-07:00

If you are remotely considering buying a home in the next year, or even two years, can you use an extra $6,500 to $8,000 to sweeten the deal? If so, you need to revise your time table --- Say like RIGHT NOW!

At present our Federal government is making you a limited time offer. How's this? Agree to a binding home purchase by April 30, 2010 and then close the sale by June 30, 2010 and you might just get the money for asking.

Here is the deal, you can get up to 10% of the purchase price as a tax refund check from the IRS. For a first-time homebuyer the max is $8000 and for a move-up buyer the max is still a nice $6,500. What can you do with that?

We are now in the countdown to April 30th and it looks like this may not be extended again... so lets get busy. Take a few minutes now and read the limits and guidelines, I'll even link you to a good site with a click right here. Just promise to come back.

Are you now ready? We can help make it happen at EXIT Upward Realty, give us a call now at 423-847-8001. Or pick an agent from our experienced sales team and contact them today.

Pat Branham Earns NAR Short Sales and Foreclosure Certification

2010-04-08T14:42:00.000-07:00

Buyers and Sellers Benefit from REALTOR® Expertise in Distressed Sales

Chattanooga/Hixson, TN - Pat Branham with EXIT Upward Realty has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves.

For more information about EXIT Upward Realty, 6726 Hixson Pike, Hixson, TN 37343, please call 423-847-8001. You can also contact Pat Branham by calling 423-304-5597.

Michael Bishop Earns SFR Designation

2010-04-05T10:29:00.000-07:00

Short Sale and Foreclosure Specialist

Chattanooga/Hixson, Tennessee (Grassroots Newswire) April 4, 2010 -- Michael Bishop, an affiliate broker with EXIT Upward Realty, has earned the Short Sale and Foreclosure Resource Certification (SFR) from the National Association of Realtors® (NAR). NAR’s SFR certification is the only one of its kind that focuses on both the buyer and seller sides of distressed property transactions.

Michael has completed both in-class and on-line training in serving the Short Sale and Foreclosure markets. His training included directing sellers to finance, tax, and legal professions, qualifying sellers for Short Sales, developing Short Sale packages. He received training in listing Short Sale and Foreclosure properties and negotiating with lenders. He also has received training in working with distressed property buyers.

For more information about EXIT Upward Realty, 6726 Hixson Pike, Hixson, TN 37343, please call 423-847-8001. You can also contact Michael Bishop by calling 423-991-9085.

Homebuyer Tax Credit Extended & Expanded

2009-11-09T14:54:00.000-08:00

The long awaited extension of the $8,000 Tax Credit for First Time Homebuyers has finally happened.

And, Washington added something for many of you who already own a home or did not qualify as a "1st timer" because you had owned a home recently. There is a $6,500 tax credit for you, the "Move-Up" buyer. If you have lived in your own home for 5 consecutive years out of the past 8 years, you probably qualify.

The new and improved program does have some income requirements, but they are more generous than the past income limits. Effective November 7, the income limit is $125,000 for a single buyer and $225,000 for a couple. Above these incomes, the credit begins to shrink until you are no longer eligible at $145,000 (single) to $245,000 (couples).

You will need to buy between November 7, 2009 and April 30, 2010 and the purchase needs to close before July 1, 2010. But that is a lot of time to work out the details, if you don't wait until the last minute (again).

Senators have been heard to say "There will be no more extensions of this tax credit." So don't miss out this time.

For all your real estate needs in the Greater Chattanooga, Tennessee Real Estate market, you can always find me at EXIT Upward Realty.

Last Chance - 45 Days to Close...

2009-10-13T15:12:00.000-07:00

We are now about 45 days away from the November 30th deadline for the $8000 First Time Homebuyer Tax Credit. Time is slipping away.

My sales team and I are working with a number of anxious buyers this week, but we can still help you find the right house. We will need the help of a top notch lender who can get a loan processed without unnecessary delays, but we still have a very good shot at closing by the deadline.

If you are even close to ready, you need to get with your agent NOW. If you don't have an agent, you can contact anyone on my team for help.

Just a reminder, it is taking over 30 days in most cases to get through the loan process at present. Also, we have the Thanksgiving Holidays coming up at the end of November and you know mortgage companies will be closed for at least 2 days that week. Time is not something you can now waste and still get the money!

Your Realtors® for life are the professional sales staff at EXIT Upward Realty.

© 2009 EXIT Upward Realty

60 Days to Close - Last Chance for $8000 Tax Credit

2009-09-22T14:06:00.000-07:00

The $8000 tax credit for first time home buyers is set to end November 30th. This is like getting an $8000 discount on your dream home.

With new mortgage and appraisal procedures in place, it is now taking 45 to 60 days to close a new loan. Sooooo...you need to find your new home and make your purchase in the next few days. Time is running out. If you wait another two or three weeks, you run the risk of not closing by November 30th.

Remember, we have holidays in November and mortgage lenders close their offices during holidays... Now could be your last chance to qualify for this tax credit.

There are a number of good home buys available in the Chattanooga area, so lets get started before we lose more time. At EXIT Upward Realty, we know what it takes to help home lookers become home owners.

© 2009 EXIT Upward Realty

$8000 Tax Credit - A Limited Time Offer

2009-09-05T13:06:00.000-07:00

The $8000 tax credit for first time home buyers will end on November 30th. If you want to take advantage of this program, you MUST close the purchase of your home by that date. If December 1st comes and you have not closed, you will not get the money.

Of course, Congress could extend the program, but are you willing to gamble on that? That could be an $8000 bluff to call if you are wrong.

There are a lot of rumors floating around about a $15,000 tax credit coming next year, but that is still just an unfounded rumor. If the market is truly now in recovery and sales will slowly start to climb as the "experts" are starting to predict, then why would the government need to give back $15,000 - enough people are already mad about the $8000 program and the "Cash for Clunkers" programs.

If you are a first time home buyer (which means you have not owned a home in the last three years), then the money is waiting right now ... until November 30th.

In the last 2 years there have been many changes to loan processing in the mortgage market and closings are no longer 2 weeks to 30 days. Many mortgage loans are taking up to 45+ days and often 60 days to close.

Right now, we are telling buyers that the safest way to make sure you get in on the tax credit is to be in escrow by October 1st (the 15th at the absolute latest). That means you need to find the home, negotiate the contract, and get your loan application started by the end of this month - yes, it is now September.

We have helped a number of buyers take advantage of this program already. If you need a professional Realtor® who understands the urgency of this process, then check me out on the web. My company is EXIT Upward Realty and we can deliver for you in the Greater Chattanooga, Tennessee area. We have some calculators on our site that can help you look at payments for different mortgage amounts.

Disclaimer: I am a Realtor®, I am not a tax advisor, so please check out the $8000 Tax Credit with your accountant or the tax advisor you use. They can fill in all the little details for you, so you understand how it will work for you personally.

© 2009 EXIT Upward Realty

EXIT Upward Realty Creates In-House Academy

2009-04-02T09:32:00.000-07:00

Best Trained Agents to be Recognized

Press Release:
Chattanooga/Hixson, Tennessee (Grassroots Newswire), April 2, 2009 --

EXIT Upward Realty has created an in-house training academy for their agents. The new program is known as the Upward Academy and began enrolling agents at the end of March. The academy organizes and advances the extensive training the Company has always offered.

"I am very excited to be able to recognize our best agents," said Raymond Warren, Broker/Owner of EXIT Upward Realty. "We are proud of the dedication and hard work of our sales team. We want each of them to know their company has great expectations of them, but will support them in achieving those expectations. We can best serve the public by offering them the very best trained agents to represent them."

With enrollment in the designation program of Upward Academy, the agents can earn the Graduate Upward Academy (GUA) designation that identifies them as one of the best in the business. Agents must complete extensive in-house and outside training programs. The education consists of EXIT Boot Camps and other specific industry approved classes. In addition to education, to earn the GUA, agents must complete a minimum number of closings prior to receiving the designation. The agent must also be in good standing with the Company, State Regulators, plus all local, state, and national Realtor® associations. Once enrolled, the agent has 24 months to meet the requirements for designation.

The designation program is available to all EXIT Upward Realty sales agents at no charge. Agents with other companies may interview for sales positions with the company and if accepted may pursue the designation. Or see career opportunities here.

For more information about EXIT Upward Realty or Upward Academy, please call 423-847-8001. EXIT Upward Realty is located at 6726 Hixson Pike, Hixson, TN 37343. Or click here.

Chattanooga's Stimulus Package is VW

2009-02-14T12:55:00.000-08:00

Those who know me have heard me say "As goes housing, so goes the economy." Which means that when the local housing market is healthy, the local economy is healthy. Those of you who share this belief with me, were probably disappointed not to see more housing in the "stimulus bill" that passed in Washington this week.

There was a $15,000 tax credit in this stimulus bill at one time, a credit that anyone could use if they just purchased a home for their personal residence. With all the back and forth between the polical interests and Senate and House, that provision disappeared from the final bill. Too bad, it would have helped immediately. Maybe it will come back soon in a housing stimulus bill.

But keep this in mind, people need jobs to buy houses. In Chattanooga, we are eager to see the 2000 new jobs promised by the $1 billion VW plant, but the real excitement should be for the 9,000+ new jobs that the VW suppliers will bring to the region. That means new jobs, which means housing gets healthier in the whole area.

In an article in Automotive News magazine on February 2, 2009 there is a discussion about these new employment opportunities in our area. The article talks about automotive suppliers expectations for the future. This is good news for the local economy. VW and their suppliers are in essence a "stimulus" program for all of us who live and work in this area. Thanks to the Chattanooga Area Chamber of Commerce, you can Click here to read the article.

Chattanooga is patiently and positively waiting with excitement.

Bargain Hunters - THIS is your real estate market!

2009-01-22T13:05:00.000-08:00

Everyone loves a deal, but some folks only want a great deal! If you are one of those investors or homebuyers that want the deal of a lifetime, then you should be alert to the current real estate market. Here are the simple reasons.

Low prices - most sellers (if they still are in the market) have learned that the prices of two years ago are not possible to get today. So prices have moderated some, as much as 10-40% lower than in 2006-7 in some markets.
Low mortgage rates - interest rates are low, some 30 year rates below 5% do exist. AND, lenders DO have money to lend. FHA and VA are the most popular programs being used by the majority of buyers and they are having no problem finding money if their credit scores are good.
Great selection - in many markets Realtors® are reporting as much as 10-12 months of inventory. That means buyers can find the house they really want in most markets.
No competition - the days of multiple offers with buyers bidding up prices to amounts higher than listing prices are gone for the time being. Only in a very limited number of markets are buyers facing any competition at all. So sellers are having to negotiate.
Great move-up opportunities - Seller may take a hit on their current home, but (due to reasons 1-4 above) most sellers are more than making up the difference on their new home. They are realizing that if they move up now, they can take advantage of lower prices on their dream home. And with lower interest rates they can keep saving for many years with lower than normal house payments.

So if you are bargain hunter, we need to be talking RIGHT NOW, before the market shifts. Just a small increase in mortgage rates can cost you thousands of dollars over the life a typical home loan.

Your Action Plan: Check out my company or my personal website and contact me for a confidential review of your market readiness. Or just drop me an e-mail at Info@UpwardRealty.com. You enjoy saving money and I enjoy helping people save money, so lets have some fun.

Chattanooga Foreclosures

2008-12-16T13:12:00.000-08:00

If you have an interest in buying foreclosures in the Chattanooga, Tennessee or surrounding areas, I have a service for you. Each week my company prepares a list of the foreclosures available in the City of Chattanooga, the surrounding counties of Southeast Tennessee, and Northwest Georgia. The list is designed to be sent to local investers by e-mail.

If you would like to receive this list, please send an e-mail to foreclosures@UpwardRealty.com and include your e-mail address and your first name. We will send you an e-mail that will include the current list with information about each property for sale, including the address, some home features, and the asking price. You can then check out the ones that are of interest to you. Once you narrow the list to the homes you might want to buy, contact me for a private viewing.

As you prepare to take advantage of the deals currently available in our local market, you need to line up your funds or needed financing. Some of these properties will require repairs ranging from minor cosmetic fixes up to major structural needs. Unless you are a contractor or at least experienced in home repairs, you should also line up contractors in advance who can assist you with your property evaluations.

These houses also make great investments as your personal home and often are eligible for FHA/VA loans or first time home buyer programs. FHA even has a loan program that allows you to borrow repair money for homes that are not quite perfect. Ask you lender about FHA 203K financing. Don't be discouraged by the news reports, there is mortgage money available in the market right now!

The market has a more than ample supply of distressed properties right now, so there are some bargains to be had. Just start by getting the list at foreclosures@UpwardRealty.com.

You can also search the current HUD Homes listings here.

© 2008 EXIT Upward Realty

Real Estate Careers (Part 4 - Other Stuff to Consider)

2008-11-10T08:54:00.000-08:00

Are you beginning to get excited about real estate as a career option?
You have a lot of options to consider in this industry, but an exciting and challenging future is very possible for anyone willing to work. Real estate is not a get rich quick business, it can be a work and get well off type business. That will be up to you.

Independent Contractor (Finally)
One of the "Stuff to Consider" when you make your decision to enter a career in real estate is this "Independent Contractor"(IC) status you will take on. What does that mean? In short, you are not an employee of the company or your Broker. Yes, you are your own boss. When something goes wrong with your career - it is probably your fault. When things go right, it is probably because you are so good (or lucky). The State still requires your Broker to supervise you and the Broker holds legal responsibility for your training and they are at risk for any wrongful actions you might take.

So what is the purpose of IC status? Basically, it means you work under a contract with your Brokerage firm and under the supervision of that Broker. By contract, you will only be paid when you produce - no salary, there is seldom an internship or draw available in this industry. Kinda like the New York song, "If you can make it here you can make it (almost) anywhere." The key IC purpose is your tax status with IRS. You will be self-employed and you will be responsible for keeping up with your income and expenses then you will balance them on Schedule C. You will be responsible for all income taxes and Social Security taxes - the company will not participate in these. At the end of each year, you will receive a 1099 Form from the company and it will show a total for the commissions they have paid to you during the year.

As an IC you will work within the Policies & Practices of your Brokerage and they will exercise some limited control. That control is mandated by law from the State in which you practice. However, an IC does have a lot of personal freedom. Most Brokers say nothing about the hours you work, there is no minimum time required in the office. Most offices have Floor Duty time scheduled that you must be in the office (to serve clients who call or walk-in), your participation in Floor Duty or Opportunity Time will be voluntary. If participation is required, remember you still have an option - you can work elsewhere.

NICHE?
One of the new buzz words in the industry is "Niche", as in "niche markets" or "finding a niche" to focus your career. We used to call this "Specializing". The most successful agents are the ones that do work in a special segment of the market and become experts in their chosen area.

There are some specialized training programs and designations available for you to consider. A few people specialize in "green" or eco-friendly housing (expected to be big in coming years), Seniors (lots of aging boomers), First-time homebuyers, Lake/Waterfront Specialists, Foreclosures (Repos), and Short Sales (Pre-foreclosures). If you have an interest in one of these or another niche, then you should select a Broker who will support you as you become the expert. Your Broker does not need to be an expert in the same area, but does need to support you. Some Brokers are not very supportive of a Niche that they don't understand. (Remember those questions in Part 2.)

Community Service:
There are Brokers who feel strongly about giving back to the community. You need to be aware of this and align yourself with someone who shares your charitable passions. I personally want my company to be a good citizen and give back, so we are involved in a number of charitable events that we sponsor as a company. I like to see my agents involved, I don't require it of my agents - but I do enjoy seeing them give back. You can see some of our past activities, just CLICK HERE.

Networking:
There are numerous opportunities in today's business world to network with other professionals. My company is a member of our local Chamber of Commerce, and the agents in my office regularly attend Chamber networking events. It is good for our business, but also good for the community. When business is strong in a community, the community has a strong economy and everyone benefits.

5 Vital Resources:
The Brokerage that you will call home should offer you a number of resources that will support you and help you succeed.

First, they must be REALTORS®, members of the local, state, and National Association of Realtors. Don't even consider a Broker who is not a member. Most Multiple Listing Services (MLS) are operated by and for Realtors® only - you must have MLS to survive in today's market.

Second, they should be Chamber of Commerce members. This is a resource for you that only enhances your status/position within the community.

Third, a solid web presence is also a must for your success. Business is being done daily on the web and a site is a basic necessity today. Add to that web marketing and promotions and you are beginning to become connected. Don't consider a company that does not find the internet to be important to their success.

Fourth, a training program. Every company needs an organized training effort that operates on an ongoing basis - not whenever some vendor is willing to come to a sales meeting. You are brand new and regardless of how smart and creative you are, you need supervision and training. The State thinks it is so important, they passed statutes requiring your Broker to be responsible for you. My office has regular training classes in both daytime and evenings.

Fifth, office facilities. The office does not need to be fancy, or appear expensive - it should be functional and operate professionally. This includes systems, computers, wi-fi, printers and copiers, telecommunications, connections, work spaces, and professional support staff. A neat and clean work environment is also a must (only one exception, the Broker's desk can be a bit messy.)

So, are you ready to take a step forward? If you still have questions about getting started, leave a comment on this blog. I will respond.

It is impossible for me to have covered everything for everyone, but hopefully you are better informed and you are getting excited about the real estate industry. As I said earlier, we appear to be on the verge of another up market - they always follow a down market. And lets face it, we have had a down market for the last two years.

Start with your pre-license training. There are great real estate programs everywhere - just ask someone in the business for guidance. And remember, the answers need to make sense - don't listen to vague responses - ask questions, lots of questions.

You can contact me through my website or with comments on this blog. I hope you become very successful. Even better, I hope you become very successful in my office or another fine EXIT Realty office. If you need an introduction to a broker in your area of the country, send an e-mail to me at info@UpwardRealty.com.

© 2008 EXIT Upward Realty

Real Estate Careers (Part 3 - The EXIT Strategy)

2008-11-08T11:07:00.000-08:00

(Sorry, but this is a long one. You may want to get a snack and something to drink.)

What a title, are you thinking "Hey, I am just getting into the real estate business, why are you talking about an Exit Strategy?" That is the way you should be thinking. You should be looking at this business as a long and successful venture. But, one the biggest mistakes almost everyone makes in their career and in life in general is to fail to plan long-term.

When I was a 20 something and anyone mentioned retirement, I really did not want to listen. That was something that was so far away that I could wait years before starting to plan. Besides, in my 20s how did I even know what I would want to be doing when I was retirement age. Well, regardless of what you are going to do in retirement, it is going to cost you money - a lot more money than you can imagine.

Real Estate as a career has been one of the harshest businesses on our people when it comes to planning for the future. In a 9 to 5 job, in most cases, you have a retirement plan and in many cases you also have access to a 401K plan that allows you to save tax free + maybe a little extra from an employer contribution. Well, guess what - in real estate you are an independent contractor most likely and YOU are your own employer. YOU are the one responsible for retirement planning.

Historically, real estate professionals have taken a few limited routes to care for their retirement needs. One of course was to buy real estate - a great idea for all occupations - and get the property paid for by retirement age. That way, you would have your rental income to live on. Or you could sell the property and finance it yourself - so you could live off the monthly payments from the buyers. Like I said, a great plan for ALL occupations, but this should not be your only plan.

Of course, as independent contractors, some might have hired a financial adviser and they might have been making regular investments in an IRA or some other Defined Benefit Plan. Like owning real estate, these are great instruments to use. Their personal wants and needs for retirement would have guided their advisor to select the right investment vehicle for them.

Real estate has up and down years, further making it difficult for an agent to stick to a long range investment plan - there will be lean years. Unfortunately some agents do nothing, so they are really between a rock and a hard place at retirement age. With only Social Security available to them, many are not able to retire - they must keep producing until they are no longer able to work. Sometimes a health issue or injury brings on that date even sooner and the lack of planning is magnified.

If you have read much of my past ramblings, you know all of this is leading someplace. There must be something more I can offer for you to consider. This will be one of the very most important decisions you make in your new real estate career. This directly relates to Parts 1 and 2 of this series and our discussions about selecting the right broker for you!

You are surely familiar with the two dimensional history of real estate - we list properties and we sell properties. That is how we get paid - all the daily duties of the business, all our expertise, all our improvement and training efforts relate to those two dimensions - listing and selling. There is now a third dimension to real estate that was designed and built by one company. That company is EXIT Realty - good name, right? The name fits well with "The EXIT Strategy" that I would like to share with you. You can do more than just list and sell to secure your future retirement - regardless of how many years away that may be.

Here is the plan:
The simplest description is to call the plan "Residuals". While residual income is nothing new, since the insurance industry and the recording industry has used this for decades. They pay their agents and artists long term benefits for work they have done that continues to benefit the company. In real estate, obviously, you sell a property and there is no long term money coming in, so how can you earn residual income from this industry?

Here is the secret that EXIT has figured out - why someone didn't see it sooner is hard to imagine. The EXIT plan for residuals rewards the agent who helps build the company. If you as an EXIT Associate introduce another agent to EXIT, you bring into the company an ongoing source of income. Just like premiums on an insurance policy or the fees for a recording that continues to play on the radio, the new EXIT agent is going to produce income for the brokerage as long as they are an EXIT Associate. So with residuals, you are rewarded for bringing the new agent into the company?

This makes EXIT a successful company because every new agent has a sponsor - a mentor who has a vested interest in seeing that the new agent is productive and successful. There is only residual income to the sponsor when that new agent produces. Since every EXIT Realty agent is in the system by invitation, we all have someone supporting us.

THIS IS NOT MULTI-LEVEL MARKETING. Don't let other brokers tell you that it is. There are some companies that do pay for up to 7 levels of recruits. But their plans are based on profit sharing - sometimes there is no profit. You will never figure out their formula and they cannot explain it to you. Don't fall for a plan that makes no sense to you.

At EXIT, you are only paid residual income based on your personal recruits - whoever they recruit will never add a penny to your income as a residual benefit. However, when one of your recruits earns a commission, you will be paid a residual bonus from EXIT International based on an amount equivalent to 10% of the gross commission your recruit produced.

This is not 'smoke and mirrors' this is as simple as the residual income your insurance agent or your favorite singer or actor earns. Like them, the company continues to benefit from your efforts, so you are rewarded.

Here is the EXIT Strategy that I promised at the beginning of this blog. If you decide to retire many years from now, as long as your recruits continue to produce, you continue to receive a bonus equivalent of 7% of their gross commissions. AND, unlike other retirement plans, you can continue to build your residuals in retirement. You do this by continuing to sponsor new associates into the EXIT system. If you don't like retirement, you can return to active status at any time and build back to the 10% residual level.

There is also a 5% beneficiary benefit, should you pass away. Your selected beneficiary will continue to receive residuals equivalent to 5% of the gross commissions of your recruits for as long as your recruits are producing commission to their EXIT broker.

Let me end this long and painful read for you by saying - if this is a new concept for you, at least learn more about it in your decision process. When you select the right broker, this just might be a very useful 'peace of mind' benefit for you. It certainly helps smooth out some of the bumps in your income. When your sales are off, you may still receive residual income that keeps your family going until your next closing. You can read more at my web site and even watch a video, just CLICK here and hopefully you will find some useful information.

Like I have told you earlier in this series, ask lots of questions. You can even leave comments or questions on this blog and I will reply on-line.

What is next? Real Estate Careers (Part 4 - Other Stuff to Consider). Watch for the next blog around Monday (11-10) or Tuesday. And I promise to talk more about your status as an Independent Contractor. What does that mean anyway?

(Career information at EXIT Upward Realty Click here.)

© 2008 EXIT Upward Realty

Real Estate Careers (Part 2 - The Questions)

2008-11-03T12:50:00.000-08:00

I talked in Part 1 about finding THE right Broker to support you in your new career in real estate. When you begin to ask questions, you need to make sure you ask the important questions. Do your homework in advance and know each company well when you meet with the Managing Broker. The company web site is a great source of information, or should be...

BEFORE THE QUESTIONS:
The company web site should educate you about the company, the Broker, the agents, the marketing, and the history and philosophy they live by. Check out the links to see if they work. Look at the layout, is it well planned and up to date? The web site will be a reflection of you as well, if you join their sales force. Make sure you can live with it, because if they are not maintaining it and making it work, it will not be an asset for you. Remember, it is a high tech world - people are buying homes based on what they find on the internet. Most buyers start their search on the web - your Broker and you have to excel there, if you are to survive. The quality of the company site will either make or break your success.

THE QUESTIONS:
Become comfortable with your questions before you meet with the Broker the first time. You are asking them to consider you to become part of their staff - hopefully a very professional sales team. Part of good selling is being a natural and you are in the process of selling yourself. Guard against being perceived as arrogant or condescending. Know what is important to your decision and focus on those questions. Also, be ready to answer the Broker's questions - they are making a decision about you at the same time you are deciding about them. This process is a two way street.

Ask specific questions about compensation - the common term in the business is "Commission Split" and this has to do with what part of the total commission you will receive. Most companies start at 60/40, which means you get 60% and the company takes 40%. But you must ask about what the split will be based on and understand how it works. With most franchised companies, 6 to 9% of the total commission is paid to the franchise and your 60% is part of what is left. If just 6% comes off the top to go to the franchise, your 60% is now 56.4% of the original total. (With 9% fees, your 60% becomes 54.6% of the total.) The difference can be thousands of dollars each and every year. Make sure you understand their formula, you will have to live with it... (more on this subject in Part 3.)

Next, you need to ask about fees. Every company is different when it comes to fees. So, an answer like "they are routine for the business" is NOT a good answer, at least not for you. Some companies have significant fees that you must pay, even if you have sold nothing. The big one is a DESK FEE and you need to know that all companies DO NOT charge them. A new one is a TECHNOLOGY FEE that you pay each month, even if you use no systems of services from the broker. Some companies have MARKETING FEES, just make sure you know what you are paying for and what is being marketed. Some offices even charge you a REFERRAL FEE for clients the office produces, such as from floor calls. There are other creative fees some companies have devised. If you hear of any unusual fees, please leave a comment to this blog.

Training is an important subject to address for a new agent. You need to pin down the details of what training the company offers. Who will do the training - the Broker, another internal source, franchise trainers, electronic sources, or a combination? How often is the training offered, is it well attended, and is attendance required? Does the company sound like they are committed to the training program or just paying lip service to attract you? Focus on this subject and get the answers. You will definitely be glad you pursued the details later. You don't want to be new and alone.

Access to management. Remember I told you (in Part 1) that the Broker is required to supervise his new Affiliate Brokers and that means time together. This is a good subject to ask the agents in the office if you are allowed to spend time talking with them. Ask lots of follow-up questions, remember that you may be allowed to only talk with selected agents, so you may have to press to get un-coached answers. This is where I have to remind you that SIZE MATTERS - you can really get lost in a large company and that is not a good thing when you are working strictly on commission. A brand new agent can disappear in a large firm - if the Broker has a lot of agents to supervise, you can and often will suffer. Know who will be in charge of supervising you during those first days.

The administrative/support staff. Does the firm you are considering have a professional full-time staff or a college student to answer the phones? Start by listening to how the telephone is answered when you call and see if you are respected and dealt with appropriately - this will be your support if you become part of this company. When you need help with the copy machine, the e-mail system, office protocol, or all the other many processes, who will help you? Every successful real estate agent had lots of help becoming a success - make sure your new company offers you the help you will need. It matters!

AFTER THE QUESTIONS:
Once you have the answers you need, weigh all of the information very carefully. You are going to have to live with your decision for as long as you associate with your new Broker. If you do this right, you will have many successful years in one place.

Take the time to think about the whole picture. Consider first the people you will be working with on a daily basis. Make sure you find people of integrity as well as people you enjoy spending time around. The image of the Broker and the company will become the image the public will associate with you - make sure it is a good one. But you also need to make sure you enjoy being with your new associates.

Consider the location of the office, you may be spending some long and late hours there, so be sure it is a safe location. Is the office in a permanent location or are there plans for a move in the near future? Will the move still work for you and your needs.

In Real Estate Careers (Part 3 - The EXIT Strategy), I will continue this discussion with some information about services you can expect from my real estate company. Remember in Part 1 I promised to talk about being an "independent contractor" later, we still have that to cover as well. Please feel free to leave comments and ask questions at this blog site. Part 3 will follow later this week - check back.

(Career information at EXIT Upward Realty Click here.)

© 2008 EXIT Upward Realty

Real Estate Careers (Part 1 - The Basics)

2008-10-31T13:10:00.000-07:00

You may be looking for a change in your life, maybe a career change. Have you considered a career in real estate?

Don't let the current economy scare you away from a dream, in America we have always seen peaks in our economy following every valley. Yes, you may be hearing dreaded news right now about real estate, but now is the time to get the basics and be ready for the boom that will come. People have to live in houses and businesses need stores, warehouses, and plants. All of these needs will push the real estate market back up. So now is when you get ready for the good times to come.

Every state has licensing requirements for real estate sales professionals. Most of these require some pre-licensing education, followed by a written examination, and then continuing education. In Tennessee, you will need 60 hours of pre-license education. You will then take the state exam. When you have passed the exam, you will need to take another 30 hours of post-license education before your license will be issued and sent to your new broker.

Every new agent must be under the supervision of a Principal Broker. With your new license, the State of Tennessee will refer to you as an Affiliate Broker, some states call you a Sales Representative or some similar label. As an Affiliate Broker, under the supervision of your Principal/Managing Broker, you will begin your sales training and be allowed to work with the public in many different phases of the real estate industry. In most companies, you will not be an employee, you will be an independent contractor (more about that later.)

Finding the right Broker, is one of the most important tasks you will have as you enter this field. Brokers come in all shapes, sizes, and skill levels. Like your mentor in any other field, some Brokers are just better than others for certain people. Your Broker matters very much, but if you make a mistake with your first choice, don't waste a lot of time hoping they will become the perfect mentor. Some great brokers are just not good mentors, trainers, or supervisors. As a newby, you are going to need training and attention and you need the right Broker for you.

You must ask questions and you must listen to the answers. If what you hear is what you want to hear, it may be designed to sell you. Top Brokers have usually been Top Salesmen for years, they know how to close the deal. Make sure you get real answers, not general information that sounds good. So what kind of questions do you need to be asking?

First, take a look at the company, the office, the other agents, the support staff, the systems in place, the tools available, and ask lots of questions about anything that does not click. Approach it as if you are the problem and ask questions like "So it is probably me, but I don't totally understand your answer about this feature (or service, or whatever) of your office. Can you elaborate on this?" If what you are asking about is a genuine benefit to you, the Broker will want you to understand and be comfortable with the details. Otherwise, if your questions are drawing vague replies that could have multiple meanings, you seriously need to keep looking. Also, if the people in the office are not open, friendly, and seem happy to be there, then you are seeing red flags.

In Real Estate Careers (Part 2 - The Questions), I will continue this discussion with some questions to ask and some services to look for in a real estate company and the Principal/Managing Broker. Please feel free to leave comments and ask questions. Part 2 will follow the first of next week - check back.

(Career information at EXIT Upward Realty Click here.)

© 2008 EXIT Upward Realty

A House is Not a Piggy Bank!

2008-09-21T18:42:00.000-07:00

In our country, we refer to owning a home as the "Great American Dream." But do most Americans still feel that is true? The current market says "no" because many dreams are available at very reasonable prices with great financing and buyers are not buying them.

If owning a home is OUR dream, then we should be doing everything possible to obtain that dream right now. We absolutely may never see another market like we presently are experiencing. Perhaps our logic has been skewed by a changing thought processes in recent years. With all the "get rich quick" shows about making our fortune by flipping houses, maybe many Americans now look at a home like a savings account. Expecting our homes to make us independently wealthy has caused us to lose our "American Dream" mentality and we have become a bit greedy.

When we hear our home may be worth 10-25% less today than two years ago, we tend to become afraid. Much like we do when we see our 401k statement has gone down. The right logic we should use here is that unless we need to sell our home right now, it really doesn't matter what someone else thinks our home is worth. It is still our home! We should have bought the home to have a safe haven for our family, a place to go when the world outside is not so pleasant. What price can we put on such feelings? What does the ideas of a talking head on TV have to do with the true value of our home?

When we want to remodel the kitchen or paint the living room or change the carpet in the den, that should not be a decision we weigh financially. However, more and more we seem to evaluate "home improvements" as investments that should have an expected return on investment. If we want (or need) a new stove, we should think about features for using it for family lunch on Sunday or baking the turkey for Thanksgiving - not getting our money back when we sell the house someday.

Our "investment" mentality has caused us to be afraid of pursuing our "Great American Dream" because if our house is just a Piggy Bank, then we need to make a cold, well calculated, buying decision based on some investment formula.

However, if it truly is a dream - then we should buy our family a home. Live there for the next 20 years, have babies, get a dog, grow some flowers, plant a tree, and build some memories. We don't write poetry, tell sappy stories, and create emotional attachments to honor our investments. Or do we?

© 2008 EXIT Upward Realty

Down Payment Assistance Disappearing

2008-09-05T09:47:00.000-07:00

For years, there have been programs that buyers with no savings could use to buy a house with cooperation from the seller. These programs allowed the seller to pay the money into a charitible organization and then the money would be used to assist the buyer with closing costs and down payment funds needed to close the sale.

These programs had names like Nehemiah, Quickdown, AmeriDream, etc. and owners would have to sign a couple of extra forms during the underwriting of the loan. Then needed funds would go from the owner's side of the closing statement to one of these organizations and then back to the buyer's side as funding assistance.

At present these programs are still available and work great with FHA financing, but you are running out of time very quickly. Some lenders are saying they need the loan in underwriting before the deadline - others are saying they will only do these if the loan closes by September 30, 2008. Either way, there is no time to spare. So you better find a house fast, if you need such assistance.

Effective October 1, 2008 all of these programs will disappear. They are going, going, and will soon be gone.

© 2008 EXIT Upward Realty

USA Today Says Buyers "Get a Lot of House for Their Money" in Chattanooga

2008-08-22T12:07:00.000-07:00

A March 2008 article in USA Today says Buyers "Get a Lot of House for Their Money" in Chattanooga. This was even before Volkswagen committed to build a new assembly plant in our scenic city.

Chattanooga, Tennessee is a great place to work and live. If you are considering our town as possibly your next home, read the USA Today article and check out my previous blog entry of August 14 titled "Chattanooga a "Not So" Well Kept Secret" which links to many accolades from other major magazines. This will be a fun and informative research activity. Then come visit...

We have everything you want from recreation to arts to a growing job market.

© 2008 EXIT Upward Realty

Chattanooga a "Not So" Well Kept Secret

2008-08-14T12:53:00.000-07:00

Chattanooga, Tennessee is garnering all kinds of accolades from the outside world. National magazines are putting us at the top of the "Best of the Best" lists. Here are few articles that you might find interesting.

The September issue of National Geographic's Adventure magazine lists Chattanooga as one of The 50 Next Great Adventure Towns: Where to Live & Play Now . Check out this article.

Forbes Magazine recognized us in their April 7, 2008 magazine as one of the Great Places for Business.

In June of this year MSN Money called Chattanooga a "New Hot Retirement Spot."

Relocate America named Chattanooga as the third best place to live in the U.S. just behind Charlotte, NC and San Antonio, TX.

The Chattanooga Area Chamber of Commerce and all of our citizens have a lot to be proud about. We are proud of our town - now it seems the rest of the world is finding out about the place we call home.

There are a number of links in this blog entry - please take a few minutes and become more familiar with the Scenic City of the South. In the top right hand corner of this blog you will find more links to Greater Chattanooga Area information.

© 2008 EXIT Upward Realty

Housing and Economic Recovery Act of 2008

2008-08-12T13:24:00.000-07:00

In late July, President Bush signed the Housing and Economic Recovery Act of 2008, also know as H.R. 3221. But what was included in this new bill? I will try to give you a brief overview in this blog entry.

First, the bill permanently increased the maximum conforming loan limits to $625,500. This raises FHA, Freddie Mac, and Fannie Mae limits. FHA limits are now the higher of $271,050 or 115% of an area's median home price up to the new $625,500 limit. For Fannie and Freddie, the new max is the higher of $417,000 or 115% of the area's median price to $625,500. These are the new pemanent figures. (You may remember that in February there was a temporary increase to a max of $729,750 and that amount is still the upper limit until December 31, 2008.)

The new legislation allows about 400,000 homeowners facing foreclosure to refinance with a new FHA backed loan.

Another super feature that should help in the recovery of the home sales market is the First-time home buyer tax credit. which allows first-time home buyers to receive a tax refund for up to 10 percent of a home’s purchase price, the maximum credit is $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years. You can discuss this program with your tax adviser to see if it is good for you. Remember, this is for the first time homebuyer.

There are a lot of detailed features in this housing bill - if I just did a list of bullet items, there would be 10+ bullets to follow below. I think I would probably lose 90% of the audience...

The good news is that this should help the real estate market in the recovery process and that should boost the entire economy. If the economy begins to recover, the current low prices will begin to rise as demand increases for the current supply. NOW is the time to start looking for your new home, before everyone else jumps in and starts bidding up the prices again.

Check out my company web site to find a full-service Realtor that can help you find your next home... we are very good at selling homes, too.

© 2008 EXIT Upward Realty

Chattanooga Welcomes Volkswagen

2008-07-19T11:08:00.000-07:00

Unless you have been in a coma or visiting another planet since last Tuesday (July 15, 2008), you should know that Chattanooga has been selected as the site for a new $1 Billion VW production plant to be built. A lot of local folks are shaking their heads in amazement - but they are still smiling.

Everyone in the area knows this is big news, but most of us have yet to realize just what this means for the Southeast Tennessee and Northwest Georgia areas. In fact, Northeast Alabama and the Western regions of the Carolinas are going to benefit as well.

This is fantastic economic news for our area - especially at this time when we are seldom hearing even good economic news. Every area of the community should reap major, long-term economic growth and some stability to soften the natural ups and downs of the economy.

As a Realtor®, you know I have to look at the changes that are expected in the local housing market. While the changes will begin slowly and expand more quickly with time, you can and should expect not only to recover any property values lost over the last two years - you should expect price increases for the entire region. There will be a tremendous increase in the local payroll with VW and with the support businesses that move to the area. More money will be chasing a housing market that will have to expand to meet the demand. That means you will pay more for housing in the region.

If you've been sitting on the sidelines listening to the "Network Naysayers" (Network Nitwits), you might want to start thinking about YOUR future beyond the next 3-6 months. NOW IS THE TIME TO BUY A HOME! This is the best buyer's market Chattanooga has seen in probably 15 years or more. YOU may not see this kind of market again ever when the Rabbits start to multiply around here. Do you want a house? Yes, THEN GET OFF THE FENCE while you can afford a home.

When someone in New York (who sells stock on Wall Street) tries to give you real estate advice for Chattanooga, Tennessee, be very suspect about the value of that advice. (Stock brokers don't like real estate anyway, they like for you to pay them big fees then they lose your money for you.) Like politics, all real estate is local. And you know that local for us is promising - not the NY gloom and doom.

If you don't know where to start, contact me. My sales team and I live here in the Chattanooga area - we market this area all day - everyday, and we will still be here in a year or five years from now. We know a great place to live and we want to share it with you.

Here is a link to my company web site: http://www.upwardrealty.com/.

© 2008 EXIT Upward Realty

Buy a House for $100 down...

2008-06-02T10:25:00.000-07:00

With the recent changes in the mortgage market, 100% loans have dried up. If you are a military veteran, you can still get 100% financing under the VA program, but everyone else needs a down payment.

If you have good credit but limited funds or you want to use the funds you have for decorating your new house, there may be some good news for you. Take a look at my post from May 28, 2008 titled "Buying HUD Homes with FHA Financing" (you can scroll down to it).

You should find this program interesting. If so, you can call me at 423-847-8001 for more information or to start your search. Or click on my website at www.UpwardRealty.com. Remember, HUD can take this program away at any time, so the sooner you get started, the sooner you get to move in!

© 2008 EXIT Upward Realty

Right Time - Right Market

2008-05-29T06:19:00.000-07:00

The Chattanooga Association of Realtors® (CAR) has begun a new campaign to help the community understand our current real estate market. The project includes billboards that will be popping up around town with testimonials from real people who are now homeowners in Chattanooga, Tennessee.

The campaign is called Right Time - Right Market. Chattanooga and the surrounding area is a great place to live and CAR is sharing this good news with everyone.

CAR has also created a new website that will help potential buyers and sellers learn more about the Greater Chattanooga Area and the benefits of buying a home. There are a lot of links at the new site, so you can research not only the City of Chattanooga, but the surrounding areas of Southeast Tennessee and Northwest Georgia. Here is quick link to the new website: www.RightTimeRightMarket.com.

Let me know what you think of the site by leaving comments on this blog. If you visit the site and find this is truly is the Right Time - Right Market for you, contact me and we will get to work. I can be found by calling 423-847-8001 or click on www.upwardrealty.com/.

© 2008 EXIT Upward Realty

Buying HUD homes with FHA financing

2008-05-28T14:53:00.000-07:00

Are you in the market for a house and want to save some money? The Department of Housing and Urban Development (HUD) has some homes on the market that you might need to consider. These are repossessed homes that were originally financed with an FHA loan, but have been taken back by HUD.

Yes, some of these homes do have significant problems, but you can find HUD homes that need just a little work such as some cosmetic attention and you can find HUD homes that need to be gutted and rebuilt. But you do get to inspect the houses before making an offer and you can do a full home inspection during escrow. HUD also has a "Property Condition Report" on line for each house that can be very helpful - but this does not replace a home inspection.

Many of these homes are eligible for FHA insured financing again, and HUD may help you with some incentives. If you are the winning bidder for one of these homes, HUD offers closing cost help as well as help with financing. Your agent will need to request all incentives when your bid is placed. You will need to live in the home you purchase, if you are looking for FHA financing help. Investors can also buy these home, but more traditional financing will be needed.

At present, there is a program called "Buy HUD with FHA" and it is a great option for qualifed buyers on a budget. Under this program, HUD is offering FHA financing with $100 down. The usual down payment for an FHA insured loan is 3%. So, on a $100,000 house, you would pay down $3000 on a regular FHA loan, but with this program, you pay down $100.

There is a catch, HUD says "PLEASE NOTE: These incentives are being offered for a limited time and may expire without notice." So, you need to get going if you want to take advantage of this program.

If you are interested in pursuing a program like this, you will need to work with a HUD approved broker who will have the keys to gain access to these properties. Any licensed real estate agent who has registered and been approved by HUD can help you. Of course, I would hope you would use me or one of my agents. I have helped a number of buyers purchase a HUD home over the years. You can find me at www.upwardrealty.com/ or call me at 423-847-8001. But whoever you select as your agent, ask them some questions and make sure they know the process and have experience assisting buyers with the HUD process.

In any case, if you think you are interested in this program, don't waste time thinking about it, get moving! Remember that bold warning from HUD and contact me or another approved HUD broker today.

You can look for HUD homes and more information on buying HUD homes at http://www.pyramidrealestate.com/. If you have more questions, and you know you will, please don't hesitate to contact me, or you can post comments to this blog.

© 2008 EXIT Upward Realty

It's Spring. Do you have a yard to play in?

2008-04-02T06:48:00.000-07:00

Spring is finally here. We can get outside again and enjoy the flowers, the sound of birds, and we can spend time in our yard. I know, by June, that will be more like work, but right now it is an enjoyable way to relax for most folks. Unless, you don't have a yard.

The yard is a very important feature to home buyers when they begin the home search process. Families that have children place the importance of the yard on a level almost equal to the number of bedrooms, or the schools they wish to attend. However, most buyers can only describe what they are looking for as "Well we would like a fairly level lot" or "We'll know it when we see it."

If you are going to be buying soon, you should start really thinking seriously about the features you would enjoy in the new yard.

If you are a minimalist, wanting only to cut the grass and sit on the deck, then you probably don't want to buy a home that has been owned by a master gardener. You are probably more of a candidate for a fairly level "postage stamp" lot.
However, if you are the master gardener, then you probably need no landscape advice, but you do need to be thinking about how you will want to use your new yard and how it should lay. Every gardner does not want a level yard. Do you want a landscaped yard that you can maintain, or do you want to start from scratch?
How big do you want the new yard to be? If you want a large lot, tell your agent so you don't waste your time looking at homes on a quarter acre lot.
If you want acreage with your new home - the really big yard, then you need to think about how you will use the land. If you want to mow 2-5 acres or you need pasture land, you don't want mountain acreage. However, if you want woods around (so you can become a hermit), then a level tract of land is not as important, in fact some steep grades might better serve your privacy purposes.
If you want a home with a water feature, do you have the time needed for proper upkeep of the plants, fish, etc.? Are you willing to spend the money needed to maintain the function and beauty of the feature?
If you really want an in-ground pool in the future, you need to evaluate the yard as to how well suited the space is for a pool. Will it cost a lot of money to level the lot, build retaining walls, move septic tanks or sewer lines? Just because there is a "good spot" for a pool, doesn't mean it will be easy to install. You might consider having a pool contractor do an evaluation of the property before you buy (or make his evaluation a contingency in your offer.) This is not a job for your home inspector!
If you need a fenced backyard, don't limit yourself to only houses with fences. The right home for you may require that you add the fence. Make the fence "a plus" if it is already there and usuable, but don't eliminate the right house because there is no fence yet.
Trees should be evaluated carefully. Mature trees are valuable for their shade and beauty. However, a tree in the wrong place, such as too close to the house, can be very expensive to remove. A diseased tree is costly to treat, prune, or remove. A professional opinion in advance may save you money and heartache later. Again, this is not a job for your home inspector.
When you find a possible new home, consider carefully the drainage around the foundation of the structure. Water is the number one enemy of a home. The grade of the lot, landscaping, gutters and even soil absorbency all play a part in keeping water from entering the structure. Water needs to always drain away from the house, never allow water to drain against the foundation or run down the siding. Pay attention to the flow of water around the house, before it becomes your house.

Make your new home more enjoyable by considering the yard before you own the yard. There is an old saying "If money can fix it, it is not a problem" but most new homeowners don't have the extra money to fix something they could have avoided with a careful evaluation before making the offer. A top notch Realtor® can help you successfully negotiate a purchase that gets you into the right home, addresses all your concerns, including professional inspections, which allows you to enjoy the new home and the new yard for many years.

Your comments are always welcome, so if you have a success (or horror) story you want to share with others, please feel free to enter your comments and read those of others who have responded to this blog. I will respond to your questions and comments.

When you are ready to start looking, my experienced team of Realtors® is ready to WOW you with service that is second to no one... you can start here: UpwardRealty.com.

Tax Refunds & Rebate Checks!

2008-03-05T12:23:00.000-08:00

Congratulations, if you are one of the fortunate Americans that will be receiving an Income Tax Refund. Hopefully, it is a nice BIG check and you can do something special for you and your family.

If you have been considering the purchase of a home, then perhaps your tax refund would be best invested into a new family homeplace. If you have been "sitting on the fence" while waiting for the current buyer's market to bottom out, you might want to hop down real quick.

Most Realtors® I am talking with (and I talk with lots of Realtors®...) are saying their activity has picked up and they are showing property more than over the last few months. NOW is the time to get ahead of the Spring buying crowd. As people start to buy again, the competition will start to drive prices back up.

You could wait for your Tax Rebates that are coming, but it could be May or even early Summer before you see that money. Since interest rates have been climbing over the last couple of weeks, you could be paying a lot more interest if you wait for that Rebate check. Even a small rate change could mean thousands of dollar$ in interest over the life of the loan.

Of course, a home will still be a great investment this Summer, but it would be an even better investment at current interest rates!

When you are ready to start looking, check out my website and let my team get started wowing you with great service. We can make it happen for you! http://www.upwardrealty.com/.

Copyright 2008

ALERT...Mortgage rates at 3 year low!

2008-01-31T14:28:00.001-08:00

Interest rates over the last week have been L-O-W! We are talking the lowest in about 3 years.

One client building a new home locked in his interest rate at 4.5% for a 30 year fixed rate. This happened on January 22, 2008, the morning after the 3/4% cut by the Federal Reserve. Rates did rise later that day, but 5.5% or less has continued to be available.

It is time to buy a house! What are you waiting for, a rate increase?

Market Report - Time to buy!

2008-01-18T08:47:00.001-08:00

If you have been waiting for the "bottom of the buyer's market" so you could get the best deal, you may be limiting the future success of your investment. Right now, real estate prices are the lowest they have been in years and we may already be at the bottom of this current cycle.

"Timing is everything" is one of those old sayings we live by, but recognizing the right time to buy is not an easy task. If you are waiting to buy a home for your family, waiting means continuing to pay rent, rent which pays you no return. The sooner you buy, the sooner you begin to build equity.

Today's mortgage interest rates are very low, too low to dismiss. You must give consideration to buying while the current rates are available. Think about this on a $150,000 mortgage at 6.5% you will pay $948 per month for principal and interest. If you wait, hoping to save $5000 and get the same house with a $145,000 mortgage you might be successful. However, if the interest rate goes to 7% (a 1/2% increase) while you are waiting, your payment will be $966 on the same 30 year mortgage. You saved $5000 up front, but have a higher house payment? You will be paying $18 more per month, that comes to $6480 additional over the life of the loan. Maybe not too big a gamble, but...

Another consideration is that if now is the bottom of the market and you have to pay $5000 more for that house later and the interest rate is 7%, your costs will be a lot higher. A $155,000 mortgage at 7% has a monthly payment of $1032.30 or $84.30 per month more than our first example. That is $30,348 more you would pay over the life of a 30 year loan. I can think of a lot I could do with an extra $30,000 - can't you?

If you want to know the facts and "just the facts" about the housing market? Here is a link that you might enjoy. This site is sponsored by the National Association of Realtors®: http://www.housingmarketfacts.com/. Enjoy your visit there, but don't forget to return to this blog and read more articles written over the last few months about the current market.

When you are ready, my team of professional Realtors® would love to help you find your next home. If that means helping you sell a current home, we can help with that as well. You can find out all about us at UpwardRealty.com.

Copyright 2008

2007 a Boom Year for Real Estate?

2007-11-26T14:15:00.000-08:00

You have read what I have to say about the current real estate market. Want to know what other "real estate experts" are saying?

Many people are listening to the news media and thinking they are getting "expert" advice. Friends and neighbors, that ain't necessarily so. Most of your network financial gurus are stock market guys. They want you to put your money with them in the stock market and not in real estate. They have been sulking over the last few years because people were buying real estate with the money their stock brokers used to "invest" for them. (But seriously, they deserved to lose you after they sold you all those .com stocks and messed up your 401k plans.)

Click on the link below and see what a real "real estate expert" has to say. While you are there, you can read other stories about the current real estate market, but don't forget to come back to my blog when you are done with this research project.

http://realtytimes.com/rtpages/20071126_buyinghomes.htm

You are welcome to leave your own real estate comments by clicking on the link below.

What mortgage problems?

2007-11-20T12:29:00.000-08:00

I watch the news just like you and they keep talking about the mortgage problems. Yes, I understand that a lot of owners are losing houses to foreclosure, but a lot more are not. If you are making your payments each month, you are fine and no one is going to take your home.

The facts are that over 95% of mortgages in America are being paid every month on time and there is no threat to these homeowners. Of the less than 5% who are left, the majority of them are still making some kind of payment and their lenders are working with them. That leaves a very small number of people who have quit paying on their mortgages and are now or will be in the process of losing their home shortly.

Recent surveys of actual people (not news media or "financial experts") show that more than 75% of those who have bought in the last 12 months feel good about their new home and expect to be there for 7 years or more. Further, they feel that their home investment will be as good or better than an equal investment in the stock market. They are keeping their head and not panicking - contrary to what the talking heads are saying.

So, relax and don't worry about the real estate market. If you want to buy a house, you have no reason to wait. Mortgage rates are at near record low levels, regardless of any mortgage problems the media is talking about. And with all the talk about the mortgage market and the phantom housing bubble, the prices are quite reasonable. Further drops in prices are less likely than increases in price as the market comes out of the thaw... I personally am looking to buy any bargains I can Now, before you guys start buying again and the prices begin to rise.

It is time to buy and quit listening to the nay-sayers!

Happy Thanksgiving!

Copyright 2007

Real Estate - The Current Market

2007-11-07T07:28:00.000-08:00

I have written several times in this blog about the current market. People seem to think we are in a recession or homes are just not selling. That is not the case. Do you want to know what the real estate market is doing? The term that seems to fit best is a "correction" and even this correction is not taking place on a nationwide basis. Some parts of the country are up 8-10% in prices and sales for 2007.

Real estate is like politics, it is always local. In the Chattanooga, TN. market, it really does not matter what is taking place in the New York, Florida or California markets. Those markets were inflated as everyone already knows. In those markets, there had to come a slow down at some point. Now is that time. However, most of the Southeast United States (excluding parts of Florida) has never been overinflated. The prices in most of the Southeast are still below national averages. The Chattanooga area is one of the most affordable places to live in America.

The National Association of Realtors® (NAR) tells us that the final sales figures for 2007 should show sales of about 5.9 million existing homes. This is not a record, but is at the level recorded for 2002, the second year of our most recent housing boom. That means we are really still buying and selling at boom market levels. The figures for next year are predicted to be in the 6.2 million for number of existing home sales in America.

Currently, prices in the Chattanooga area are fairly stable. Sellers still want to sell their homes, so they can move up or down while the market is adjusting. That means buyers can take advantage of this "buyer's market" and maybe get the lowest prices they will ever see. Everyone (yes, even you) fully expects prices to again rise and probably very shortly as 2008 begins the thaw.

Realtors® are still bullish on our market, we work in the housing market everyday and we see the American Dream still being pursued and attained. Those who are buying now are stopping the rent cycle and beginning the homeownership/equity building phase of life. Those who buy now will be a step ahead of you, if your plan is to "wait this out."

Most folks will continue to pay housing costs in some form, either as rent or they will realize the American Dream. You know the economy goes through cycles and you know this current housing cycle will end. Are you going to act now and take advantage of a buyer's market or will you react later when everyone else is buying and it is again a seller's market?

In Chattanooga, TN. there is a great team of Realtors® ready to work with you to help you realize your dreams of the "white picket fence" (even if your version is quite different.) Dreams don't just go away! My team at EXIT Upward Realty can and will help you realize your American Dreams.

Call us anytime at (423) 847-8001 or check out our company website at http://www.upwardrealty.com/ or my website at http://www.exitchattanooga.com/.

Our goal is to give you such good service, you will become our "client for life."

Copyright 2007

Enough With the Gloom and Doom!

2007-11-02T09:50:00.000-07:00

Do news reporters truly enjoy delivering only bad news? If you have listened to either the local or national news outlets recently, you probably think buying or owning a home is the worst thing you can consider. Regardless of the facts, the press is continuously telling us how the bottom is just falling out of our economy and buying a home now is just stupid.

Well, that ain't so! Most of the so called "experts" are not real estate experts. I have watched investment shows while four experts discuss which stocks they think are right to buy. All four have their favorites and each gives good reasons why the other three experts are really idiots. Then after 10 minutes of this, the moderator will ask them about real estate. All four will give the same response - it is a bad time to buy, prices will continue to drop, it is just bad-bad-bad! This is the only thing these "experts" have agreed on the whole time they have been on the program. However, when they were introduced, there was nothing said about them having any real estate experience - they all work for business magazines, websites, or stock brokerages. They all have an agenda - get your money out of real estate and into the stock they sell.

However, everyone keeps telling us it is a "buyer's market". Doesn't that mean it is a GOOD time to buy? Actually it does! Right now, because of the relentless bad press on real estate, prices have dropped. They have not dropped by double-digit amounts as the press whould lead to you think, but in most markets prices today are 3-5% below the level of a year ago. However, prices have actually gone up in some areas this year. Also, most home owners are not in a "have to" sell situation, so they will not make drastic price cuts, even with the "I'm going to steal a house" mentality many buyers now have.

If you are buying, expect to get a fair price, but not to steal a house. Sellers will just wait you out. Right now, you can buy a house at a reasonable price, but if you wait another year, you may be paying 8-10% or more to buy that same house. That's OK, the sellers are willing to wait.

How about interest rates on mortgages. The press has not been telling you that rates are really low. You can find 30 year fixed rate mortgages at around 6%, give or take a quarter. For 15 year terms, fixed rates are below 6%. Folks, those are LOW rates! Does anyone remember the early 80's - back then 15-18% was common and people went nuts when the rates dropped to the 11-13% range.

Regardless of what the press says, the economy is good right now. Interest rates are low, unemployment figures are low, the economic reports show the economy growing, and if not for rising gas prices we would say the economy is booming.

It is a good time to buy real estate, before the prices and interest rates begin to go back up. And you know they will.

www.UpwardRealty.com

www.ExitChattanooga.com

What is this leverage stuff?

2007-10-04T20:05:00.000-07:00

Are you looking to become a real estate investor? If so, you have possibly heard the term "leverage" used by someone already in the biz. The concept of leverage is what makes real estate a different kind of investment than stocks, bonds, or mutual funds. Using leverage is like supersizing your available investment funds.

Lets use a simple example to make the leverage concept a little clearer. Say you have $25,000 that you want to invest. If you buy stocks (without consideration of broker fees), you can buy $25,000 worth of the stock. If the stock you like sells for $25 per share, you can buy 1000 shares. If after one year the stock value increases 20%, your stock would be worth $30,000. You made $5000, not too bad - a savings account won't do that for you. The larger gain comes from taking a risk, since the stocks carried no FDIC insurance like the savings account.

Now, about that leverage available to the real estate investment. This concept is based on using what we refer to as OPM (other people's money). If you want to put that same $25,000 into a piece of real estate (not considering closing costs), with the right property, you can get a 75% loan and that means your $25,000 will buy a property valued at $100,000. So, you now have a property valued at $100,000, but you have only put $25,000 into the deal. That is leverage.

Of course you can get into a discussion about making the payments on the $75,000 loan, but that is why tenants were created. There are some other factors that also sweeten the real estate deal, such as depreciation and cash flow. And your $100,000 property only needs a 5% increase in value to recover the 20% return you would have made on the stock.

Both stocks and real estate can go down in value. A decrease in value is far more common in the stock market then in the real estate market and while a particular stock can lose 100% of its value - real estate almost never is worth $0.00.

The Chattanooga area is a great place to invest in real estate. The prices are more moderate than many big cities and it is a great place to live. Here is a great site to learn more: www.ChooseChattanooga.com.

Copyright 2007

It is 'Buy and Hold' Time!

2007-09-19T17:54:00.001-07:00

Cable TV is loaded with "Flip This House", "Flip That House", "Property Ladder", etc. The theme to all of these shows is buy it, fix it up, and resell it for a big profit. Like you, I am an avid fan and often a critic of what the "stars" are doing.

The key to making this work is buying the property far enough below market value to allow the repairs, carrying costs, and re-selling expenses to be paid and still leave a profit. Good flippers invest wisely, but too many would be flippers pay too much for the property. If they proceed to spend too much on the repair phase, or take too long, the profit part of the formula can disappear like a vapor. The "take too long" part has become more prevalent with a lot of flippers in the current slow sales market.

If you are considering real estate investing, proceed with caution, but do proceed. We are in absolutely one of the best buyer's market that has existed in many many years. Now is an excellent time to acquire real property at the lowest prices we have seen in a long time. BE WARNED, reselling that property at a profit is not so easy at present.

That brings us to an investment method many of today's millionaires used to build their fortune. We call this Buy and Hold. In this scenario, the current low prices allow you to buy property at the lower prices we now have due to the recent market corrections. You likely will have to do repairs, some minor, some extensive. But you should still have a solid investment; you just need to hold on to it for a little while.

Once you have the property, a good tenant will be around to make your mortgage payments until the market rebounds and prices rise again. With so many people not buying at present, they become tenants since they must still live somewhere. Since the market correction began (somewhere in 2006 or early 2007 - depending on which expert you consult) there have been millions of people creating new households, graduating from high school or college, leaving their parents home, and starting new jobs. All these life changes create housing needs. We know they have not been buying, so they must be renters.

So, to summarize keep these points in mind:
Prices are still low, mortgage rates are low, and there are still mortgage funds available. If you have good credit, you CAN get a mortgage at a very good rate.

Many people have lost their homes to foreclosure or are offering houses at bargains to avoid foreclosure, so bargains are out there. Like always, you must do your homework.

The usual large number of buyers are not buying, so they are still renting. This means you should have tenants who need housing. When they finally get off the sidelines in a year or so, market values (and interest rates) will probably be rising again and you may have a ready buyer.

So, find a good Realtor with investment experience and go find some bargains. Take a look at my September 4 blog entry:

Searching for a REALTOR®... Homebuyer's list.

In the Chattanooga, Tennessee market, my team and I will help you. Check out EXIT Upward Realty at www.UpwardRealty.com.

Copyright 2007

Finding the RIGHT Realtor®? Seller's version.

2007-09-04T16:01:00.000-07:00

Chattanooga/Hixson, Tennessee

You invested well...you took care of your home...you paid your mortgage...you now need to sell. What should you look for in the Realtor® you select to get the most for your hard work? How can you realize the most dollars from your equity?

Here are some things owners should consider when searching for a Realtor®:

1. They must be full-time in the business. Only a full-time agent can be available anytime a prospective buyer calls. Buyers can be fickle, meaning if they are asked to wait, they find another option. That might mean buying another house, not yours.

2. They must have experience. This is the person that will negotiate on your behalf to make sure you get the maximum price. Experience is extremely valuable when pricing your home, only a Realtor® with market knowledge can sort out the important information from superficial information. Your agent's experience is of vital IMPORTANCE to you!

3. They must have contacts within the business. Your Realtor® will be the one person that makes sure your home is exposed to the other professionals in your market. Your Realtor® will work to resolve all inspections, appraisals, title questions and problems to get you to the closing table. It really is who you know. No closing, no equity check.

4. They must be a REALTOR® - all real estate agents are not Realtors®. However, all Realtors® are trained and tested on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously. Ask the questions and look for the "R".

5. They must belong to the MLS service in your area. This connection is vital for maximum buyer exposure. Agents who are not MLS members forfeit the #1 marketing tool in the real estate business today. Don't ever consider trying to sell real estate without MLS access by your Realtor®.

6. They must care about you. If you interview a Realtor® that doesn't listen to what you say, they may not share your priorities. Most agents do truly care about you, but you can tell when you find one who only cares about the commission. Trust your instincts. This is your advocate in the sale of your home, you must feel they are on your team.

7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. Selling your home is a stressful process and you want to know what is happening, you need your Realtors® counsel every step of the way. You need to know what the market is doing and how it is reacting to your home. If your Realtor's® story seems to keep changing, you probably selected the wrong agent.

8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. The listing agreement will establish your agency relationship with your agent. Make sure you understand how you will be represented in different options. Tennessee law allows different options, but how you will be represented must be in writing.

While this may appear to be a simplified list, these recommendations can lay a solid foundation for a successful home sale. Attention to these basics should mean you avoid the heartaches and headaches of dealing with the wrong agent.

In the Chattanooga area, my team at EXIT Upward Realty would love to show you how selecting the right Realtor® can make your next move far less stressful.

The wrong agent, no matter how good the sales pitch, can become your worst nightmare.

We serve Southeast Tennessee and North Georgia.

Copyright 2007

Searching for a REALTOR®... Homebuyer's list.

2007-09-04T13:10:00.000-07:00

Chattanooga/Hixson, Tennessee

Whether you are ready to buy your first home or you are moving up or down the property ladder, the right Realtor® makes all the difference. Before you start looking, give some thought to what you expect from your agent.

Here are some things to look for when searching for a Realtor®:

1. They must be full-time in the business. Only a full-time agent can keep up with the changing market. Sometimes the right house is only available for a very short time.

2. They must have experience - this is the person that will negotiate on your behalf in probably the largest purchase you will ever make. Their experience is IMPORTANT!

3. They must have contacts within the business. Your Realtor® will be the one person that makes sure all inspections and problems are worked out to get you to the closing table. Sometimes it really is who you know. No closing, no house.

4. They must be a REALTOR® - all real estate agents are not Realtors®. All Realtors® are trained on the Code of Ethics as part of their membership in the National Association of Realtors®. Realtors® are voluntarily held to higher standards. Realtors® take public service seriously.

5. They must belong to the MLS service in your area. That connection is your source to accurate information on the most timely basis. Agents who are not MLS members, often find out about the good deal after the deal is gone.

6. They must care about you. If you interview a Realtor® and your needs seem secondary to selling you a house - run! Most agents do truly care about you, but you can tell when you find one who is working only for the commission.

7. They must be trustworthy. This means they shoot straight with you, even if it means giving you advice you don't want to hear. If your Realtors® story seems to keep changing, you probably need to change Realtors®.

8. They must represent you. Having representation means your Realtor® is working on your behalf and for your best interest. You are assured that the first seven (7) attributes on this list come together here in #8. This requires a written agreement by Tennessee law, so ask questions about a Buyer's Representation Agreement in advance.

In the Chattanooga area, my team at EXIT Upward Realty would love to make you our customer for life. We serve Southeast Tennessee and North Georgia.

Copyright 2007

When renting no longer works for you...

2007-09-04T10:27:00.000-07:00

Chattanooga/Hixson, Tennessee

You may have heard paying rent is like "flushing your money down the drain" or "tossing money in the trash". But, renting sometimes is the only option you have. When young people are starting out, renting is their only option. Later, some of our best memories are the times we spent renting that first pad (I think you might call it a crib now.)

As we grow financially in our personal lives, most of us dream of owning our own home. "The American Dream" drives us in that direction. We desire a place that shows our individual character, white picket fence optional. A place to raise a family and find a new meaning for a "crib".

For many reasons, we may be hesitant to buy that first home. It can be a scary process when we have no experience with home ownership. Second home buyers are far less hesitant - once you have owned a home, you don't want to go back to renting.

But, are you financially able to own? In most cases, the answer is "YES!" ... Provided you have not absolutely wrecked your credit. Having paid your bills on time, including your landlord - you should be able to qualify for a mortgage... In our buyer's market, sellers are frequently eager to assist buyers with closing costs help, which can make a deal work for a first time buyer.

Owning a home allows you to build equity. Equity is the value you have in your home above the amount you owe. Simply put, if you own a home worth $150,000 and you owe $120,000 on your mortgage, you have built $30,000 in equity. The people in America that have wealth own something, they have equity. There are some sweet income tax advantages as well.

So, are you beginning to think that maybe it is time to consider home ownership? If so, what about the first step you should take. Mortgage lenders say start with them. However, Realtors® like me, know that we are your best first stop. A good Realtor® is worth their weight in gold. The right Realtor® will be able to connect you with multiple lending sources and help you evaluate the various options each lender offers. Your Realtor® is a valuable source in finding the right lender and avoiding the wrong mortgage.

Once you know your financing options, you will know your price range. Your Realtor® will then help you evaluate your needs, such as home size, schools, neighborhood features that appeal to you, and a myriad of other options that must all come together in the right home.

Realtors® are paid on a commission basis, but we don't live in a vacuum. We must compete in the real world. A career Realtor® cannot afford to work with one-time only clients. We must build solid relationships - happy homeowners. Only satisfied buyers become repeat clients. Unhappy clients don't recommend their Realtor® to friends and family members.

When renting is no longer working for you, start with a good Realtor and get ready to begin building equity. In the Chattanooga area, my team at EXIT Upward Realty would love to make you our customer for life.

Get the details on what to look for in a BUYER"S AGENT by reading my September 4, 2007 post titled:

Searching for a REALTOR®... Homebuyer's list.

(There are a number of special programs for first time home buyers and I will address these in a future blog. Most lenders define a first time buyer as "has not owned real estate within the last three years." Check back for that posting.)

Copyright 2007

It's a buyer's market. So why are you NOT buying?

2007-08-30T11:54:00.000-07:00

Real estate news has been mostly negative for months now, but every story mentions that we are in a "buyer's market". So why are buyers sitting on the sidelines?

Let me speak to the buyer in you and lets think this through. Confusion and fear seem to be the key reasons you are not buying.

You are being told by the news that this is your market, but then you hear horror stories about the subprime mortgage market disappearing. But, is that you? Chances are very good that you have not abused your credit, at least not beyond repair, so you are probably not a candidate for a subprime mortgage anyway. IF this is true, then all the subprime news is NOT your news - it belongs to the other guy. You are not a subprime buyer!

Your news is very good, because you have maintained your credit. Interest rates on most mortgages are still low. Here at the end of August, most lenders are offering 30 year loans between 6% and 6.5% for your good credit. And good credit can actually have a couple of small blemishes, but not serious or numerous blemishes. So, you should be in a great position to get a very reasonable mortgage, at a fixed rate (not those scary adjustable rates).

Here is some perspective on interest rates. If you wait for a "better" market, you likely will be paying 7% or more for the same money. On a $100,000 mortgage, a 1/2% rate increase raises a 30 year mortgage payment by $34 each month. That means the 1/2% more would cost you an additional $12,240 over the life of the loan. That alone is a good reason not to wait.

You may then say, "but the TV news says home prices are going to continue to drop, so I should wait." That may be right, home prices are in a downward correction pattern at present. But, how far down are they going to go? Many markets have already made their major adjustments, so you may only be looking at a 2-3% additional drop. if so, then on a $150,000 house, a 3% drop is $4500 more it MIGHT go down. Unless you have cash, interest rates will need to stay at present level while you wait or you will pay a lot more in interest than you saved by waiting. At some point in time home prices will start to go up again.

Your decision to buy now or wait is very personal, but don't let the "gloom and doom" news stories make that decision for you. There are so many advantages to being a homeowner such as deducting your mortgage interest at tax time, or being able to paint a room the color you want, or making your own rules instead of following a landlord's rules. But the one that always seems to come out when talking with a new homeowner is that their dream has come true. Most people still have a deep desire to own their dream home.

A wise, very rich investor has been quoted as saying "when other people get scared, I get excited and when others get excited I get scared." If this is good advice, then now is the time to buy when others are afraid of the market. I'm sure you have heard the investment advice that "the time to buy is when everyone else is selling." For most of you, a home will be the biggest investment you make. Right now sellers want to sell but there are very few buyers, so sellers are negotiating. However, sellers are not giving their homes away, so don't expect to "steal" a house, but there are really good deals in the market.

So why are you NOT buying?

Copyright 2007