Archive for the '1st Time Home Buyers' Category

Moving to Augusta, GA?

Lydia Taylor May 7th, 2009

Are you looking to move to the Augusta, GA area?  Curious about Augusta’s real estate market?  Confused about the different counties, neighborhoods, etc.?   Want info on the local schools?  Love to shop and eat out but know nothing about the area’s restaurants and shopping?  Well hopefully in this post I can give you some useful information and resources to answer some of your moving questions.

river-at-dusk

The ‘metro’ Augusta area is essentially made up of 3 counties:  Richmond County, Columbia County, and Aiken County.  Augusta is in Richmond county.  Augusta is the home of the Medical College of Georgia, Augusta National (host of the Master’s Golf Tournament), the Green Jackets minor league baseball team (affiliated with the San Francisco Giants),  Augusta State University,  the Veterans Administration and University Hospitals, and Fort Gordon.  Augusta is the last stop upstream on the Savannah River.

If you are interested in living in Augusta there are very few subdivisions, however there are some popular areas like Summerville, Lake Aumond, Forest Hills, Kingswood, and downtown (although if you are looking to buy this option is limited).  If you are looking to be close to MCG  and University Hospitals,  Summerville tends to be a preferred area due to homes being within 5-10 minutes from either.  The median home price sold in Augusta, Richmond County from 4/30/08 to 4/30/09 is $112,533 with a high of $799,000 and a low of $3,500 with an average of 102 days on the market.

Columbia County has three areas that are popular to live in: Martinez, Evans, and Grovetown.  Grovetown is more of a town unto itself.  Evans and Martinez are areas of Augusta and it is difficult to differentiate between when one ends and the next begins.  Columbia County is home to large employers like Club Car, & John Deere, and upscale gated communities like West Lake or Jones Creek.  Columbia County has lots of subdivisions.  Popularity of subdivision depends on your price range and what kind of neighborhood amenities you are in search of.  The median home price sold in Columbia County from 4/30/08 to 4/30/09 is $200,733 with a high of $1,700,000 and a low of $9,000 with an average of 118 days on the market.

Aiken County is on the South Carolina side.   North Augusta is the town in closest relation to Augusta in Aiken County.  It is essentially a suburb of Augusta separated by the Savannah River.  This little sleeper offers the Greeneway (a walking path), Nike Peach Jam ( a highschool basketball invitational), easy access to I-20, and the feel of a small town.  This small community offers the essentials for daily life - grocery stores, Wal-Mart, Lowe’s, and some fast food.  For everything else most North Augustans go across the river into Augusta.  Some of the more popular neighborhoods are Hammond Hills, Bergen Place, Lakes and Streams, and homes on the river.  The median home price sold in North Augusta, Aiken County from 4/30/08 to 4/30/09 is $159,628 with a high of $1,175,000 and a low of $5,000 with an average of 123 days on the market.

Schools- one of the most popular questions asked to me is ‘What is the best school?’  Truthfully, I have no idea.  I have one child who is 5 months old and school is not in my vocabulary yet - I am still working on a full night of sleep.  From people that I have worked with in the past, Columbia County and South Carolina schools seem to be pretty popular.  However, you don’t have to take my or any one else’s word for it anymore!  Thanks to the world wide web, I can offer you a report card on the schools you are possibly interested in sending your kids to!  Click on the respective States for more information!  Georgia or South Carolina.

Shopping- aaahhh an American past time!  Augusta offers tons of great specialty shops in the Surrey Center, Downtown, in strip malls etc.  There is no shortage on great little stores - however that is a post for another time.  If you are coming from out of town you are looking for some old favorites, stores that make you feel at home regardless of location.  Well Augusta’s Magnolia Mall offers everything from Abercrombie & Fitch to Williams-Sonoma.  Don’t worry there is a Dillard’s and a Macy’s too!  For a complete list of your tried and true favorites at the mall, click here for the mall directory.

Eateries- my favorite subject.  Being a rather large city, Augusta has a wide array of places to eat.  A good number are chains you are familiar with- Outback, Bonefish, Applebee’s, Chop House, Miyabi’s, California Dreamin’, Monterrey’s, Hooters, Olive Garden, and so the list goes on.  Augusta even touts some unusual restarants such as TakoSushi - a southwestern sushi bar.  Yes- you heard correctly- they serve southwest/mexican favorites alongside sushi - killing two cravings with one restaurant!  There are also tons of great little local places and hole in the wall restaurants to choose from as well.  So have no fear, Augusta offers a selection of food for almost every taste palate!  If you ever need a suggestion- just let me know- I am pretty sure I can direct you to some great local favorites to satisfy your need for some good groceries.

So, where does the Augusta Real Estate market area fit into all of this?  The average median closing price for Richmond, Columbia, and Aiken County residential property for 4/30/08 to 4/30/09 is down 2.1% from 4/30/07 to 4/30/08.  In the same time frame, ‘days on market’ has gone from 87 to 113 days.  So what does this mean to you?  Well, as a buyer it is great news!  It appears to defy all logic because negatives are never better, but it is good in 2 regards.  One, it is a great time to get a good deal on a home- it’s a buyers market.  Sellers are having to sell their homes for a bit less on average than they did the previous year.  The second good thing is - the market did not royally crash here.  Yes, that means you will not get a house for $20 grand less; however it is a sign of a pretty stable market.  So when you are no longer a buyer and are a seller, it means that even in a tough market your home’s value will not tank so far that it enters a place of no return!

As with anything - there are those who love the Augusta Area and those who hate it.  I happen to be on the love it side.  This area offers pretty much anything one could need or want.  The bonus to it all is that you are not as bogged down with traffic and the hustle and bustle of the city.  It has its moments during the Masters and with construction, but as a general rule Augusta still has a lot of Southern Charm.  The people are friendly, the food is good, and for the Northerners trying to escape horrible winters- it almost never snows here.  What more could you ask for?

First Time Home Buyers Guide: I want to buy a house, now what?

Lydia Taylor July 29th, 2007

Buying a home can be a very rewarding experience- but it can seem overwhelming and daunting. New home buyers are confused, anxious, and concerned when it comes to finding a real estate agent, choosing the house, and getting financing. Don’t let yourself be overwhelmed: Here are a few easy steps to get started!

If you are unsure of how much house you can afford, then contact the loan officer at your bank. Even if you choose not use them, they can pre-qualify you on the phone and give you an idea of what price range you should be looking in. This does not mean you are ‘pre-approved’. Pre-qualifying will not tell you whether or not you will be approved for an actual loan.

The next step after determining what price range you can afford to buy in is figuring out what you are looking for in a home. This means how many bedrooms you need, what size yard, and what area you want to live. Depending on what price range you fall in -especially if you are in $125,000 or less in the Augusta market- there will be limitations on the kind of home that you can get. It may not be in the exact location you had hoped for, or it will not be very large.

Once you have a rough idea of what you are looking for, it is now time to find a Realtor. They will help you determine what the market has to offer you. In choosing a Realtor, interview this person to determine if they have a personality suited to helping you. You are a first time home buyer- so you need to find someone that is willing to walk you through the process. If they seem impatient or are pushy they may not be right for you. Many Realtors do not care to work with first time home buyers, because they require more work than other buyers. There are Realtors out there who love working with first time home buyers… They find helping new home buyers to be a rewarding experience! After you have chosen a Realtor, have them take you out to see what the market has to offer. Don’t be afraid to look at homes that you think you might not care for, but your Realtor has encouraged you to look at. Realtors see a lot of homes and have a good idea of what certain areas and homes have to offer. Don’t judge a home by the MLS stats!

The next step is choosing the right house. Try to picture which house you see yourself living in. If you feel comfortable and it seems like the right house, then it probably is! Buying a home is a large investment and new home buyers worry that they are going to make the wrong choice. Well, if you plan to stay in the home for at least five years, then you will probably not regret your decision. As an investment, a home is a great long term choice. In most cases, after 5 years home values will have gone up and you will have built up enough equity that you will not lose money. Likely you will make money on the home. So, pick the house with out doubt.

When you are ready to commit to a home, your pre-approval for a home loan becomes important. This is a great piece of paper to have with you when you put in an offer. Homeowners are more likely to want to deal with the person who is guaranteed to be able to financially buy the property. Being pre-approved gives you more leverage over other home buyers.

Before you put an offer in on a home, ask your Realtor to do a Competitive Market Analysis. This will help determine if the home is listed at the appropriate price and where your offer should be. You never want to offer too much or too little on a home. Too much and you could make a bad investment or hinder your financing from going through. Too little and the seller could reject your offer for someone else’s and you will lose the home you want.

The rest of the process your Realtor will walk you through. This includes putting an offer on the home you have chosen, getting an inspection done, possibly getting a survey, choosing a closing attorney, etc. So now you know how to start the process, go out there and find your new home!!!!

First Time Home Buyers Guide: How much house can I afford?

Lydia Taylor July 16th, 2007

The results are in: you have just talked to your mortgage loan officer and he has told you that you are qualified for anything under $200,000! Wow, that’s great isn’t it?

Not so fast.

The loan officer did the easy part- he calculated what he can loan you based on your credit history and income. But, he doesn’t pay all your bills every month, does he? Yeah, we wish! Just because he thinks you are qualified to pay a $200,000 mortgage does not mean that you can handle monthly payments on that mortgage, maintain the home, pay your other bills, AND eat! Before you get your heart set on that house, you need to really break down your finances.

Determine how much income you have each month. Subtract your regular bills (phone, car payments, television, groceries, taxes, etc.) Figure out if you want to save any of the leftover income for discretionary spending. For example, entertainment, remodeling, general shopping (clothes etc.)… Determine how many dollars per month remains, and then save at least 10% of that final amount for what ifs, such as if you are sick, the car breaks down, the oak tree falls on the house, etc. I call this the ‘junk happens’ fund. Basically, be smart and hold some money back for a rainy day.

Not a lot left is there? But this amount is what you could potentially spend per month on your mortgage. Keep in mind that your basic payment might not include PMI (Private Mortgage Insurance) or homeowners insurance, so that monthly payment could go up a little. It really is about what you can actually afford, not just what you have been told you can afford.

One last comment about that monthly budget. Keep in mind that what is at the top of your comfort level or just slightly over today might be VERY easy to pay in a few years. For example, after a couple of years you might pay off a car, freeing up money, or maybe you are due to get a promised raise during the year, allowing you the ability to more easily handle your mortgage payment. You can and should take the future into account too, not just the present. But beware that you do not rely on this thinking and get yourself in over you head! What if you find out your pregnant with twins next year?

So don’t count on buying at the ceiling of your pre-approval amount. Be a smart home buyer and keep that payment in your comfort zone.

If you are unsure about monthly payments and how they correlate to house values, the best thing to do is ask your mortgage broker. If you want to try a different tack for now, my website does provide a mortgage calculator to help you get a better idea of where your payment might be.

Good luck first timers- here’s to smart home buying. Exciting isn’t it!

First Time Home Buyers Guide: Am I ready to buy a house?

Lydia Taylor July 9th, 2007

Are you tired of paying rent? Have you always dreamed of owning your very own home? Are you unsure if you can make that dream come true? There are some basic things to evaluate in your life to see if you are ready to buy a home.

First, are you living in an area that you plan on staying in for at least a couple of years? If you think that it is possible that you will not be living in the area for an extended time, it might be a mistake to buy a home. It takes time to build equity in the home and time for the market to increase in value. If you purchase a home and leave in less than 2-5 years, chances are you will not have built the necessary equity to sell your home without losing money.

Second, are you committed to maintaining a home? Apartment living and renting a home usually means that there are maintenance personnel that take care of exterior repairs, lawn service, appliance repairs, and keeping the structure in good repair. These are all things that you would assume responsibility for once you purchase a new home.

Third, are you prepared to carry the cost of owning a home? This includes -but is not limited to- general maintenance costs, yard maintenance costs, home owner’s association dues, insurance and taxes (if not in escrow), and utility bills like gas and water (that are not paid by renters). If there is major damage to your home in inclement weather, consider that you will be responsible for paying the deductible. This is all on top of your normal living expenses that you are currently paying. Then there are the one-time additional expenses as well- such as a lawn mower and other lawn tools, a refrigerator, a stove, washer and dryer…

Fourth, are you financially stable enough to pay a mortgage or be approved for a home loan? If you are have credit card debt, or are living pay check to pay check, then now may not be the best time. That situation might prevent you from qualifying for a loan in the first place, or even worse get you into a situation where paying a mortgage might be overwhelming.

If you understand and feel confident that you can handle these responsibilities, then you are ready to own your own home. Owning your own home can be work and it should not be taken lightly, however it can be a rewarding experience. Homes are where memories are made, and a place that you can make your own.

First Time Home Buyers Series Coming Soon

Lydia Taylor July 8th, 2007

I have been busy with the new site, which means I have not provided any new or interesting material for the blog lately. However I am planning a First Time Home Buyers series that I hope you will enjoy. Here are a few of the topics that I plan on covering over the next couple of weeks:

  • Am I ready to buy a house?
  • I want to buy a house, now what?
  • How much house can I afford?
  • What kind of expenses should I expect when I buy my new house?
  • Who pays closing costs?
  • How do I know this is the right house?
  • Did I choose the right real estate agent?
  • What should I expect from a home inspection?
  • Did I choose the right mortgage company, and are they giving me the best loan?
  • Should I sign the buyer’s brokerage agreement?
  • Who pays my agent?
  • What price should I offer on my new house?
  • Should I buy resale or new construction?….

Let me know if you have a topic you would like me to cover!