The process goes like this: The Borrower provides proper documentation to his or her mortgage lender(s) to show a hardship to pay the mortgage and requests the lender take a “short” payoff on the outstanding mortgage balance. The mortgage lender (or bank) takes a loss (or write-off) on the mortgage because the value of the home has fallen below the mortgage balance and the homeowner has suffered a legitimate financial hardship that has caused the borrower to fall delinquent and is unable to continue to pay the mortgage on time.

Once the bank approves the “short” payoff on the mortgage, the home can be sold for a price near the market value without the Seller having to come up with cash to cover the shortfall. The mortgage is satisfied and the foreclosure process stops. It is recommended that a homeowner considering a short sale consult with a CPA, attorney, and of course, a qualified real estate agent experienced in short sales.

Luckily, here in the Greater Baton Rouge Area we have not experienced many of these types of properties on the market, but we have seen enough that two team members have become Certified Distressed Properties Experts.  If you wonder if you might qualify for this type of service to get out from under your mortgage, give us a call and let us see what we can do for you.

Five Things to Know About a Real Estate Agent
What's Your Number? – Ask how many properties the agent has sold. You want to see a proven track record, and someone who sells 10 homes a year probably won't get the job done as well as someone who sells 50 or 60 homes. Also, you want to find someone who is experienced in selling homes in your neighborhood.

It Ain't Pretty – A good real estate agent will make nice but honest suggestions on how to cosmetically improve your home. Don't take it personally. Listen, make the changes, and get your home sold. Simple.

Out To Lunch – Do they work full time? The odds are that agents who sell homes part time or just on the weekends won't be available when you need them. Ask them about their system for finding buyers and communicating with you as the seller, as well as if they have a team to cover for them if they are sick or on vacation.

Show Me the Odds – Ask what the agent's list-to-sell ratio is. What percentages of houses that they list actually sell, and what percentage of asking price do they get? The agent who wants to sell a house for the highest price is probably not the right person. Anybody can ask a high price, but that doesn't mean they can sell it for that.

Not All in the Family – Don't list your house with a family member or friend just because of the relationship. This is a business transaction, and if they are not good at the business, then your house doesn't get sold. If they are the top real estate agent in the market, then that's a different story. But hiring someone based purely on relationships is always bad.

The Pat Wattam Team at RE/MAX First has always addressed these questions with our clients.  We believe you need to know how we sell houses, how we communicate with you, and what are our back up systems when one of us is out (like last week when Buyer Partner, Kyle Petersen and wife Michele enjoyed the birth of their son, Connor!). 

Our goal is to take the mystery and the hassle out of the home selling and home buying process so that you, our client, can make the best possible decision.  Call us anytime for a free consultation!  225-298-6900 #realestate

This continues the trend we have seen since the housing market collapsed across the nation a couple of years ago.  Although we are seeing a few more foreclosures in the Baton Rouge Real Estate Market, they tend to be on the high end homes or the low end.  The middle prices seem to be doing quite well, and that is probably still fueled by the tax credit. 

There are plenty of great homes for sale in the greater Baton Rouge area and with the Tax Credit, it's a great time for people to make that move!

The National Association of Realtors said Thursday that the median sales price for previously occupied homes rose in 67 out of 151 metropolitan areas in the October-December quarter versus a year ago. That’s a sharp improvement from the third quarter, when prices rose in only 20 percent of cities.

In Baton Rouge, where the housing market has never cratered as bad as it has in a number of other markets nationwide, the median home price for a previously occupied home rose $1,000 to $157,400, an increase of 0.6 percent.

The housing news reflects what I consider to be the health of our economy.  With a great selection of homes to choose from, buyers will enjoy taking advantage of the tax credit as well as the excellent value here in the greater Baton Rouge Area.

One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:

1.    Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.

2.    Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

3.    Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.

4.    It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.

5.    Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

Give us a call and we'll get you under contract in time for you to take advantage of the tax credit!

The tax credit for first time home buyers helped us have a strong finish to 2009 but the start of 2010 is dramatically different, and it is strictly due to the tax credit extension and the additional tax credit for existing home owners.  I have never seen a January so busy!  We have been told that the Federal Government will NOT extend the tax credit again and for us to get that word out to our clients!!

So, let's get into the statistics for 2009.  

This Graph shows the average list price for the new listings, the homes currently on the market, the homes pending, and finally the homes sold.

Sold Statistics for 2009 (EBR, ASC, and LIV parishes)

Ave List Price:  $197,861      Ave Sold Price $192,081    Median Price  $168,000 

Average Days on market were 94 - up 2 from last year.  This is the number to keep watching.  This should stabilize but it significantly longer than the past 5 years.

Comparison Stats:

YEAR   AVE LIST $$     AVE SOLD $$     MEDIAN $$      DAYS ON MARKET

2009     $197,861           $192,081            $168,000              94

2008     $208,438           $202,994            $171,500              92

2007     $201,342           $197,313            $167,103              69

2006     $211,550           $208,798            $193,000              41

2005     $187,685           $184,514            $152,000              32

2004     $157,173           $152,890            $133,000              44

Another interesting note is that the closed price vs listing price is still very close.  Many people think they can come to our area and get a house 20-30% off list price need to look at these numbers!  This shows that we have a very healthy and stable real estate market!!!

 If you want to keep up with the real estate prices for your home, and you are in my MLS area, sign up for the Market Snapshot.  It's an automated system that will send out a report to you once a month with properties for sale and sold within a half mile of your home.   

This graphy shows the type of loans most popular with buyers.  FHA (government backed loans with 3.5% downpayment) have become very popular again - much like they were 20-30 years ago.  Buyers are scraping togehter downpayment money but asking nearly every seller to contribute (rather, let the buyer fincance in their purchase price) money at closing to pay for the buyer's closing costs and prepaid items.

I hope you find this information useful!  If you have any specific questions, please call or email me anytime!

The simple solution here is to keep a trickle of water running.  Since the ground rarely freezes here that keeps +32 degree water in the pipes, so no freezing and no bursting.  It can run up the water bill though. 

If you're going to be gone during the time of a freeze and can't monitor the situation, then drain the system.  If you don't mind getting your hands a bit dirty you can shut off the water at the street meter using T-handle shutoff tool available at most home centers and hardware stores.  Just be aware that sometimes these street valves can be a "bear" to move.  If you're lucky, you will have a shutoff valve at the house connection.  No tools needed, just turn it off like a water faucet.  Then open the inside faucets and unscrew the drain plug outside.  It's just above the shutoff valve and looks like a tire valve stem cap.  If there is no drain plug or house shutoff valve, then open the outside faucets to drain and be sure to insulate the portion of the pipe bteween the ground and the faucet since it will still have water in it.

If you haven't found a house you like, then don't be rushed.  This is your home, a place you plan to live for the next few years.  If nothing out there appeals to you, then wait until you find the right house.  BUT, I do have to say, if you can't find ANYTHING to buy, perhaps you need to look at your criteria again.  If there is nothing that fits your budget, then you just need to save up more money or pay down debt so you qualify for more.  Of couse, if you are only need to go up in price $8000-10,000, then buy now and use the Tax Credit to repay yourself!  But if all the houses need some updating, take your tax credit and make the house into what you want! 

Either way, you need to make a decision now.  Call us for help in finding the perfect home.  We'll help you see the pros and cons of your homes to help you make the right decision - timely!

Kyle Petersen, ABR

I met with some of my sellers last week who had been in the same house for over 20 years and the house is over 30 years old.  Unfortunately, over that time, their neighborhood had gone down a bit - it has capped off at what homes are worth, no matter how nice they are or how large they are, the neighborhood has a ceiling on prices.  Of course, since they have a larger home than most, and it's nicely updated, they will sell faster than other homes in the subdivision.  If they had sold that house at least 10 years ago, and bought in a newer subdiviision, that home would have increased in value more than their current home has, over the same time period.

You know, there is a reason that people move on average about every 6 years!  The plan I came up with for Roger and me was to move every 6 years, and kept buying a nicer home,  more poplular area each time, and now I'm in the part of the plan where we stay in this house for 15 years, and then the next house for 10-15, and then go to a condo or maybe retirement village.  The plan is to keep buying into an area that will give me the best appreciation.  I know, people like to have a paid off house, and so do I - I just don't mind moving!!!

I know there are some areas of the country where the buyer/seller would cringe at this idea due to the way their market has crashed.  But historically, even in the wrost market back in the 80's, it took California only 9 years to go from peak to valley and back to peak.  In the 25 years I have been selling homes in the greater Baton Rouge Real Esate Market, this scenario works like a charm.   Make a plan for your future with your house!   if you need any advice with this idea, just give me a call anytime to discuss!

We are recommending to our clients that they actually close on their new home by November 1!!!!  We are having them all get their credit approval now, while we are shopping for homes for them, so that we can make sure that they do not miss out on the $8000.

If you are a first time home buyer and are not sure where to start, please call the Pat Wattam Team anytime and we will counsel you on the home buying steps, where to start, and make sure that YOU don't miss out on the Tax Credit. 

Contact Info:

Pat Wattam    225-298-6900    sold@patwattam.com

Kyle Petersen   225-298-6901   kyle@patwattam.com

Debbie Hanna  225-298-6899    debbie@patwattam.com

Karen O'Pry   225-298-6902      karen@patwattam.com

On a even more interesting note, we all have been aware that the upper end of our market has been very stalemated - and we think this had a lot to do with the economy in general, and the stock market, in particular. However, the Pat Wattam Team has received contracts, THIS week, on an $800+K, $600+K, $500K properties - all in the same week!!!! This has been unheard of for the past year. Does this mean that there is confidence in the Baton Rouge Real Esate Market, or confidence in the economy as a whole? We don't know. Once these homes get past the home inspections, appraisals, ect. and get closed, it will boost the upper end market once more!!!  It will be interesting at the end of the 4th quarter to compare sales in the upper end and see if they have come back to normal. 

Remember this time last year, Baton Rouge Market was humming along quite nicely, then hurricane Gustav hit, then the stock market and economy basically took a nose dive!  If you look at last years stats you will see the market drop in half starting in October.  Not surprising after the hit our area took from Gustav!!!  I always wondered if Gustav had not hit, what would our market have looked like - would we have weathered the stock market hit??

For a final thought, this time of year, just as school starts back up, is generally a very slow time in real estate - in fact, many Realtors take off a couple of weeks at this time of year. This year, my team is working like crazy, showing houses, writing offers, and closing properties. Something is going on in our market, and I'm glad that we are, so far, still not in the distress situation many cities our size find themselves facing! Good news for Baton Rouge!!

Something I always suspected but didn't have the real stats on was also revealed.  National statistics indicate that each home sale generates approximately $63,000 worth of cash infused into the local community, based on an average sales price of $300,000. This includes the fees that are paid to Real Estate Agents, banks, title companies as well as the vendors and business who sell things most new homeowners make when they move into a house such as curtains, appliances, flooring, paint, furniture, etc; and the ripple effect from all of that spending that spreads throughout the local economy.

I encourage everyone to contact their senators and representatives in Washington to encourage them to pass this bill should it come to a vote. In my opinion, a $15,000 tax credit is well worth the $63,000 of local economic activity that is created with each average home sale, not to mention the benefit to the home buyer.

If you would like to know more about the $15,000 tax credit and buying an property in the Greater Baton Rouge Area, give me a call, I’d be happy to talk to you about it!

The reason Baton Rouge was included in this group is because we were in a market were housing did not have a big boom, so the home values are expected to remain level for the coming months.  Also, as reported earlier, Baton Rouge is expected to weather the recession better than most and that contributes to our good housing market.

The great economic news for our area, the low interest rates, and good availability of homes, makes this a perfect time to make the move to a new house! Check out the available home listings at www.BatonRougeRealEstate.com to see what is available.

Baton Rouge was cited as being one of the best cities to ride out the recessiong due to construction, stable government employment, and our energy sector!  Add to that, our stable housing market, and once more, Baton Rouge is a GREAT place to call home!!