Your Guide to Living In Greater Birmingham

Calming the Fears of the Home Buying Process: Addressing People

First of all, we admit it, home buying and selling is scary. You know it, we know it, and we admit it. The big question is, what are we scared of?

What are we scared of?

We have found that there are about three things that probably scare you most about buying a home.

Our hope over the next few days is that we will be able to give you some behind-the-scenes secrets that will help you deal with the 3 things that scare you most about buying a home.

So what are these three things?  We have identified them as, first, cost, second, commitment, and, third, people. (We tried, but we couldn't come up with three c's.)

Third, we want to address people. Who can you trust in this home buying process?  This is a big investment we're talking about.  And it seems that everyone is out to make as much money as possible OFF of you! 

There are sellers, real estate consultants, lenders, builders, movers, and attorneys, all of whom may be strangers, and have a vested interest when you buy a home.  It's easy to be afraid that they will take you to the cleaners. 

The behind-the-scenes secret is to check their references.  Really.  Many lenders and real estate consultants operate on a referral basis - in which they ask clients to refer them to others they know are buying a home.  Those who offer "lifetime relationships" and other services (like Free Reports and seminars on buying or selling homes) are already striving to meet your needs.

In reality, they are NOT all out to get you - because in the long run, the BEST business strategy is to make sure that you get what you need and want in a home.

Buying a home must up there at the top of all frightening experiences, but, the reality is, is that many of us will buy a home and do it again during our lifetime.

By giving you a these "behind-the-scenes" secrets, we hope to help you deal with the 3 things that scare you most about buying a home.

Birmingham Alabama Fall Parade of Homes

It starts this weekend! The Fall Parade of Homes has arrived! The largest home extravaganza is beginning September 29-30 and will also be the next two Saturdays and Sundays on October 6-7 and October 13-14, 2007.

This year promises to be the largest ever with 222 homes and 2 remodeled homes on display. There will be homes showing ranging from a starter home for the first time home buyer to high end luxury homes for those looking to make a move upward.

I have been going since before I was in involved in real estate, and personally just love to look at homes and see the new trends in architecture, home technology, and dream build.

Join the parade and check out some amazing homes!

For more information, visit the Fall Parade of Homes website.

To hear the Rick and Bubba radio ad, listen here.

Calming the Fears of the Home Buying Process: Addressing Commitment

First of all, we admit it, home buying and selling is scary. You know it, we know it, and we admit it. The big question is, what are we scared of?

What are we scared of?

We have found that there are about three things that probably scare you most about buying a home.

Our hope over the next few days is that we will be able to give you some behind-the-scenes secrets that will help you deal with the 3 things that scare you most about buying a home.

So what are these three things?  We have identified them as, first, cost, second, commitment, and, third, people. (We tried, but we couldn't come up with three c's.)

Second, we want to address commitment. We all know that women like to stereotype men as having a fear of commitment – but when it comes to buying a home, we’re all susceptible. Buying a home usually means committing money and time (at least a year – usually more like 5-10 years) to being in one spot. 

The behind-the-scenes secret to dealing with the fear of commitment is in buying a home that will resell easily – that has features that other people will want. If you do this you will know that upon having, or just wanting, to sell your home you will have less problems.

Buying a home must up there at the top of all frightening experiences, but, the reality is, is that many of us will buy a home and do it again during our lifetime.

By giving you a these "behind-the-scenes" secrets, we hope to help you deal with the 3 things that scare you most about buying a home.

Birmingham Hoover Alabama: More Good Reasons to Live Here

I was reading an article from Realtor Magazine and found out more reasons why Birmingham Alabama is a great place to live.

In today's market, a lot of buyers are looking for a bargain. It looks like, according to economists from Fiserv (FISV), Lending Solutions, Moody's(MCO) Economy.com, and BusinessWeek, that Birmingham and Hoover offer buyers just that.

First, though, let's define what a bargain is, according to these economists. They define a bargain as a place where homes are affordable, price appreciation is probable, and the economy is strong.

Now why is the Birmingham Area among these areas? For starters, the median home price is $164,900. Also, the affordability ratio is 2.9. (This is formulated by dividing the median home price by the median family income, and lower is better.) The forecast 2 year change in home prices is 9.2%, and the forecast 5 year employment growth is 1.6%. These are all great statistics!

To see the other reasons why we have been spoken about so much here recently can read Birmingham Alabama Strong Housing Market and Strong Economy and Hoover Alabama Job Market: One of the Nation's Strongest . To learn more about Hoover check out the Hoover Alabama Real Estate Guide and Community Tour

Their top pics are listed below along with the median home price and the forecast 2 year change in home prices:

• Austin-Round Rock, Texas: $186,600, 5.4 percent
• Baton Rouge, La.: $174,700, 7.7 percent
• Birmingham-Hoover, Ala.: $164,900, 9.2 percent
• Corpus Christi, Texas: $130,000, 10.3 percent
• Durham, N.C.: $180,100, 6.1 percent
• Gulfport-Biloxi, Miss.: $154,200, 10.8 percent
• Houston-Sugar Land-Baytown, Texas: $154,900, 6.4 percent
• Mobile, Ala.: $140,400, 8.1 percent
• Montgomery, Ala.: $150,100, 7.8 percent
• San Antonio: $154,300, 6.4 percent

Did you notice that Alabama has three areas in the list? WOW! Looks like Alabama is a great place to work and live.

To read the entire articles from where this information came you can read Where to Find the Top Home Bargains, Where Are All the Real Estate Deals?, and Best and Worst Bargain Real Estate Markets

Calming the Fears of the Home Buying Process: Addressing Cost

First of all, we admit it, home buying and selling is scary. You know it, we know it, and we admit it. The big question is, what are we scared of?

What are we scared of?

We have found that there are about three things that probably scare you most about buying a home.

Our hope over the next few days is that we will be able to give you some behind-the-scenes secrets that will help you deal with the 3 things that scare you most about buying a home.

So what are these three things?  We have identified them as, first, cost, second, commitment, and, third, people. (We tried, but we couldn't come up with three c's.)

First, we want to address cost. This could quite possibly be the greatest fear that people have about buying a home. Will I be able to afford it?  It keeps us awake at night - we calculate and recalculate how many lunches we will have to pack instead of going out with the gang, just so we might be able to make the mortgage payment. 

Now, let's look at the behind-the-scenes secret to dealing with the fear of cost. The secret is working with a great lender, getting pre-approved BEFORE you start looking at homes, and being realistic about what you are willing and able to spend.  The lender will give you are range of loan options available, and if asked, will give you a realistic projection of what you can REALLY afford considering your budget and lifestyle. (By the way, this means you need to ask.) What a relief this should be! This is why it is so important to locate a lender who is knowledgeable and trustworthy.

Buying a home must up there at the top of all frightening experiences, but, the reality is, is that many of us will buy a home and do it again during our lifetime.

By giving you a these "behind-the-scenes" secrets, we hope to help you deal with the 3 things that scare you most about buying a home.

Calming the Fears of the Home Buying Process

First of all, we admit it, home buying and selling is scary. You know it, we know it, and we admit it. The big question is, what are we scared of?

What are we scared of?

We have found that there are about three things that probably scare you most about buying a home.

Our hope over the next few days is that we will be able to give you some behind-the-scenes secrets that will help you deal with the 3 things that scare you most about buying a home.

So what are these three things?  We have identified them as, first, cost, second, commitment, and, third, people. (We tried, but we couldn't come up with three c's.)

Buying a home must up there at the top of all frightening experiences, but, the reality is, is that many of us will buy a home and do it again during our lifetime.

By giving you a these "behind-the-scenes" secrets, we hope to help you deal with the 3 things that scare you most about buying a home.

Birmingham Alabama Strong Housing Market and Strong Economy

I was reading a short article in the Birmingham News this week by Roy Williams and found out that we are becoming a bigger blip on the radar, and for good reasons.

Ed Finn was in town this week as a keynote speaker in a UAB and Merrill Lynch Lecture Series. Now, of you are like me you are asking, and? who is Ed Finn? Ed Finn is the editor of Barron's magazine and the editorial director of SmartMoney magazine. So, he probably knows a little bit about what he is talking about.

So, what did Ed Finn say other than Birmingham has one of the strongest economies and housing markets in the country. He also stated, "The entire state of Alabama is doing well, Alabama and Birmingham are benefiting from a growth in high-paying jobs..."

Finn also noted that Birmingham, as well as, Huntsville and Montgomery, have very undervalued housing markets compared to many other big cities across the nation. Also, Finn stated, "When CEO's look for cities to move in, they want places where houses are affordable."

It looks like Birmingham and Alabama is a great place to live and a great place to work.

Birmingham Alabama Real Estate Luxury Homes Market Watch January-August 2007

I was talking with someone the other day and the subject of the Birmingham Alabama Luxury Home Market came up. Based upon statistics from the Birmingham MLS, luxury home sales are up. Why? Really, it is hard to explain why, but we can speculate.

Perhaps it is because there were more homes listed and the inventory was higher. Maybe the mortgage situation we are experiencing right now doesn't affect those who are in this market right now. There is a thought process that says that those in good financial standing with a strong credit score can still buy homes. Based on the data buyers are purchasing homes getting sellers to drop the price about 1.06% lower than last year. So maybe buyers are just getting a better deal this year.

Either way, there is still a large inventory of million dollar homes on the market right now. You can see that they are priced about $230,000 higher than the average sold for the year thus far. It still looks like homes that are priced right, at any level, still sell faster.

Sold Properties

Date Range	Number Sold	Average Price	Price Range	Days on Market	Percent of Asking Price
Jan-Aug 2006	60	1,385,359	1,000,000 - 2,700,000	111	95.50%
Jan-Aug 2007	73	1,480,211	1,000,000 - 3,495,000	113	94.56%

Listed Properties

Date Range	Number Listed	Average Price	Price Range	Days on Market	Percent of Asking Price
Jan-Aug 2006	170	1,536,317	1,000,000-3,949,000
Jan-Aug 2007	215	1,548,900	1,000,000-4,999,000

Properties Still Active

Date Range	Number Active	Average Price	Price Range	Days on Market	Percent of Asking Price
Present:    as of 9/18/07	154	1,652,804	1,000,000-4,999,999

* Areas included are Jefferson, Shelby, and St. Clair Counties

* All statistics are accurate as of 9/18/07 according to the Birmingham MLS

Figure Our How Much Home You Can Afford

If you listen to any ad for a mortgage company or real estate company or if you just talk to a loan office or real estate agent, you will hear them suggest that if you are renting and have cash for a down payment, then you can afford to buy a home. 

There is a dilemma though, what if you don't rent?  And if you do rent, how will you know what price range should you start your home search in? 

We want to take you step-by-step through a process that can help you come up with a price range for your home search. 

Let us put out a disclaimer though, you should always speak with a mortgage lender, to determine EXACTLY what you can afford. This formula will just give you an idea of where to start.

Step One: (Annual salary ÷ 12)

Take your annual salary and divide by 12. For example, if your annual salary is $75,000, divide this by 12 and you'll see that your monthly income is $6,250.

Step Two: (Monthly salary x percent you want to spend)

Most brokers and financial planners will recommend that you spend anywhere between 25% and 36% of your monthly income on household expenses.  For this example we will use 36%, which would be at the high end of the range.  $6,250 x .36 = $2,250.

Step Three: (Calculate your debt)

Add up your currently monthly debt.  Make sure you include things like your car loan, insurance, school loans, credit cards, and any other personal debt you may have.  All of this added together gives you your total debt.  Just a guess, but let's say that these add up to a monthly payment of $750.

Step Four: (Amount you want to spend - total debt)

Now, take that total debt and subtract it from the amount that you were willing to spend per month to get your maximum monthly payment. $2,250 - $750 = $1,500

Step Five: (Monthly payment x12)

Multiply that house payment by 12 months, and you have $18,000 to spend each year. 

Step Six: (Annual payment ÷ interest rate)

Divide this annual amount by the current interest rate (We're using 10%, because it's a nice round number, and a good average). So, $18,000 ÷ .10 leaves you with $180,000 available for a mortgage!

Step 7: (Mortgage + Down payment)

Now, take the amount that you have calculated that you can afford to pay for a mortgage, add the amount of cash that you have on hand to make a down payment, and you get your purchase price!

So, using the current example: The mortgage was $180,000 plus you have $20,000 on hand for a down payment, then you can afford to purchase a home for $200,000.

Now, did that REALLY seem like brain surgery to you?

Please remember though, this is a quick and easy estimate only! You should work with a mortgage lender so that you know EXACTLY how much you can afford.

Home Security: Lock Bumping

SHOCKING! I know. It kindof freaked me out when I first saw the video, and then I found some remarks about this from the owner of a lock company who said some interesting things about the topic. Here they are:

1. Most any lock is vulnerable.
2. Most any lock can be made safer by reconfiguring the pins or using special pins.
3. There are high security locks, almost bump proof, but they may require a signature card system.

Probably the biggest bit of information I got from this is that total home security is needed on top of "fixing" your locks to really make your home safe. I thought this information could be useful and benefical to all.