By Kate Berry/American BankerDecember 31, 2009

A new mortgage disclosure rule may initially do the opposite of what the Department of Housing and Urban Development (HUD) intended.

Starting Jan. 1, lenders, for the first time, will be held to the good-faith estimate of closing costs they provide loan applicants. Lenders will be forbidden from increasing some charges at the closing table and limited to a 10% increase on other fees.

If the costs of services such as title insurance or credit reports turn out to be much higher than estimated, the lender will have to eat the difference.

HUD has estimated that borrowers will save an average of $700 in origination costs because the strengthened good-faith estimate will help them to compare offers and shop for the best price. But some experts say that, at least to start, lenders may raise their own fees to cover the additional risk, and overestimate third-party costs in the good-faith estimates to avoid running afoul of the regulation.

“The rule was adopted on the principle of lowering cost, but that may or may not be the case,” said Richard Andreano, a partner at the law firm Patton Boggs. “If there are so many restrictions and the lenders also have to pay third-party expenses, then lenders would have to increase their own fees on the loan to make up for where they are losing money.”

Though HUD finalized the Real Estate Settlement Procedures Act rule a year ago, it gave lenders a year to prepare for compliance. In addition, HUD has offered a reprieve from enforcement actions for violations in the first four months of 2010.

Still, lenders are concerned because once the good-faith estimate has been given to a borrower, it cannot be revised except under a very narrow set of circumstances, which the agency has defined as “acts of God, war, disaster or other emergency.”

The good-faith estimate “is no longer an estimate but a firm document,” said Melissa Richards, a compliance attorney at Buchalter Nemer in San Francisco.

As a result, “the cost of doing business as a mortgage lender will go up exponentially in the coming years,” she said.

Gary Lacefield, the president of Risk Mitigation Group, a mortgage consulting firm in Arlington, Texas, said he has been flying around the country training mortgage bankers to understand how they will be affected by the new good-faith estimate.

“There’s going to be lots of confusion, particularly for those issues where there is no tolerance on the good-faith estimate and the amount listed on the form has to be exact,” Lacefield said. “There are going to be additional costs involved because lenders have to make sure they have the exact amounts listed.”

Fred Gooch, the vice president of compliance at DocuTech Corp., an Idaho Falls provider of compliance services and documentation technology, said that because lenders are bound by the tolerance levels on the good-faith estimate, they are searching for ways to control third-party settlement charges.

“The real issue is how do lenders control costs that they really can’t control but are on the hook for if they are out of tolerance,” Gooch said.

One way, he said, would be to negotiate contracts with third-party vendors putting them on the hook if any of the charges exceed estimates.

Another part of the new rule that is vexing lenders: they will have to give the borrower the good-faith estimate within three days of receiving a credit application. What constitutes an “application”?

According to HUD, once a lender receives six pieces of information from the borrower — name, Social Security number, monthly income, property address, estimate of the property’s value and the proposed loan amount — the clock starts.

Andreano said that in writing that provision, HUD did not take into account how consumers typically shop for homes, particularly if they have not yet identified a specific property they want to buy.

“Very little information now triggers the need to provide the good-faith estimate when many borrowers are really just looking for a ballpark figure of what they qualify for,” Andreano said. “Because of the binding nature of the good-faith estimate, the Respa rules create the need for a lender to make a decision on a borrower very early on in the process.”

To get around this problem, many lenders are intentionally not asking borrowers to provide specific property addresses, a move that can enable them to avoid having to provide the binding good-faith estimate, according to Andreano and several other mortgage experts.

“Some lenders are saying if they have a borrower who doesn’t appear to want to apply for a loan, they won’t take the property address, because the borrower just wants preliminary information,” Andreano said. “There are occasions where lenders are appropriately not requesting information because the borrower is in the preliminary stage.”

Richards at Buchalter Nemer said another unintended consequence of lenders trying to avoid being bound by the good-faith estimate is that they may start denying more credit applications, especially if they must make decisions “on the spot,” thus avoiding having to offer an estimate altogether.

That, however, risks inviting scrutiny from federal regulators if the rate of denials in certain geographic areas exceeds that of their peers.

One way to avoid an outright denial is by overestimating the charges in the good-faith estimate. “If the fees end up coming in lower, then they charge the lower amount at closing,” Andreano said.

In theory, if just one lender gives a conservatively high estimate of fees, it could potentially begin to lose business to rivals.

However, “if a lot of lenders estimate high, then it doesn’t make any one lender look uncompetitive, because that’s what the entire industry is doing,” he said.

Last week, after the Senate gave its final and fully supportive approval on the homebuyer tax credit extension, the House of Representatives voted overwhelmingly to pass the legislation, sending the tax credit to President Obama who’s final sign-off on Friday made it official. 

The $8,000 first-time homebuyer tax credit, which was slated to expire Nov. 30, 2009, will be extended for contracts signed before May 1, 2010 that close before July 1, 2010. First-time buyers, who are in the process of closing now, no longer have to worry about qualifying for the $8,000 tax credit if they do end up closing after the Nov. 30 deadline. The new legislation also increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the current level.

Buyers who already own a home are also now eligible for a tax credit and the purchase of a home. The $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years. The legislation does set forth several provision including, limiting eligibility for existing homeowners to homes worth $800,000 or less, as well as making both credits available only for primary residences, not second homes or investment properties. The legislation will take effect November 7, 2009 and is not retroactive.

The original first-time homebuyer tax credit jump-started the housing market, driving home sales to the highest level in more than two yeas. The National Association REALTORS® reported sales jumped 9.4 percent to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2 percent higher than the 5.10 million-unit pace in September 2008.

Huntsville, AL — (November 12, 2009) — Home sales in Huntsville Madison County continued on a upward trend in October defying the seasonal decrease expected for this time of year according to new data prepared by the Huntsville Area Association of REALTORS® (HAAR). Home sales rose by 4.49 percent in October from the previous month and by 18.82 percent from October 2008.

Home Sales Break Frta - om Trend - Prices Show Seasonal Decrease

Huntsville, AL - (October 15, 2009)- Home sales in Huntsville Madison County broke from seasonal trends and rose in September according to new data prepared by the Huntsville Area Association of REALTORS® (HAAR). Home sales rose by 1.12 percent in September from the previous month and by 3.68 percent from September 2008.

At $165,275, the September 2009 single-family home median price - the figure at which half of the homes sold for more and half sold for less - decreased by 3.9 percent from August 2009 and by 3.06 percent from the same period last year.

“Our housing market continues to show signs of improvement. While it is not as robust as many would like to see, we are one of the few markets in the country where we continue to see growth and are on a much faster track to normalcy,” said Oscar Gonzales, HAAR CEO.

Available Properties

The number of available properties (active listings) in September decreased by 3.83 percent or 112 active listings compared to August 2009. There were 187 fewer listings compared to September 2008, reflecting a seasonal contraction of inventory as we move into the winter months.

The Huntsville Madison County area month’s inventory of single-family homes for September came in at 7.76 months compared to the national month’s inventory of single-family homes, which is approximately 10.2 months, according to the National Association of REALTORS® (NAR).

Days on Market

The September 2009 Average Days on Market (DOM) decreased by 10 days to 82 compared to August 2009 and decreased by 11 days from September 2008.

Month’s inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market.

Real Estate Milestones in September

Home sales rose by 1.12 percent in September from the previous month and by 3.68 percent from September 2008.

At $165,275, the September 2009 single-family home median price decreased by 3.9 percent from August 2009 and by 3.06 percent from the same period last year.

The number of available properties (active listings) in September decreased by 3.83 percent or 112 active listings compared to August 2009.

The September 2009 Average Days on Market (DOM) decreased by 10 days to 82 compared to August 2009 and decreased by 11 days from September 2008.

# # #

The computerized Multiple Listing Service, the North Alabama Multiple Listing Service (NALMLS) a subsidiary of the Huntsville Area Association of REALTORS® includes residential properties and new homes listed by 3,000 Realtors in North Alabama. Residential listing information for more than 2,800 properties may be found on the Internet at http://www.valleymls.com

The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.

Founded in 1948, the Huntsville Area Association of REALTORS® (HAAR) is a 2,000 plus-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling.

If you’re thinking of selling your home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it.

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: Refinancing your loan at a lower interest rate; providing a different payment plan to help you get caught up; or providing a forbearance period if your situation is temporary. When a loan modification still isn’t enough to relieve your financial problems, a short sale could be your best option if:

• Your property is worth less than the total mortgage you owe on it.

• You have a financial hardship, such as a job loss or major medical bills.

• You have contacted your lender and it is willing to entertain a short sale.

2. Hire a qualified team. The first step to a short sale is to hire a qualified real estate professional and a real estate attorney who specialize in short sales. Interview at least three candidates for each and look for prior short-sale experience. Short sales have proliferated only in the last few years, so it may be hard to find practitioners who have closed a lot of short sales. You want to work with those who demonstrate a thorough working knowledge of the short-sale process and who won’t try to take advantage of your situation or pressure you to do something that isn’t in your best interest. A qualified real estate professional can:

• Provide you with a comparative market analysis (CMA) or broker price opinion (BPO).

• Help you set an appropriate listing price for your home, market the home, and get it sold.

• Put special language in the MLS that indicates your home is a short sale and that lender approval is needed (all MLSs permit, and some now require, that the short-sale status be disclosed to potential buyers).

• Ease the process of working with your lender or lenders.

• Negotiate the contract with the buyers.

• Help you put together the short-sale package to send to your lender (or lenders, if you have more than one mortgage) for approval. You can’t sell your home without your lender and any other lien holders agreeing to the sale and releasing the lien so that the buyers can get clear title.

3. Begin gathering documentation before any offers come in. Your lender will give you a list of documents it requires to consider a short sale. The short-sale “package” that accompanies any offer typically must include: 

• A hardship letter detailing your financial situation and why you need the short sale

• A copy of the purchase contract and listing agreement

• Proof of your income and assets

• Copies of your federal income tax returns for the past two years

4. Prepare buyers for a lengthy waiting period. Even if you’re well organized and have all the documents in place, be prepared for a long process. Waiting for your lender’s review of the short-sale package can take several weeks to months. Some experts say:

• If you have only one mortgage, the review can take about two months.

• With a first and second mortgage with the same lender, the review can take about three months.

• With two or more mortgages with different lenders, it can take four months or longer.

When the bank does respond, it can approve the short sale, make a counteroffer, or deny the short sale. The last two actions can lengthen the process or put you back at square one. (Your real estate attorney and real estate professional, with your authorization, can work your lender’s loss mitigation department on your behalf to prepare the proper documentation and speed the process along.)

5. Don’t expect a short sale to solve your financial problems. Even if your lender does approve the short sale, it may not be the end of all your financial woes. Here are some things to keep in mind:

• You may be asked by your lender to sign a promissory note agreeing to pay back the amount of your loan not paid off by the short sale. If your financial hardship is permanent and you can’t pay back the balance, talk with your real estate attorney about your options.

• Any amount of your mortgage that is forgiven by your lender is typically considered income, and you may have to pay taxes on that amount. Under a temporary measure passed in 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Be sure to consult your real estate attorney and your accountant to see whether you qualify.

• Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score less than foreclosure and bankruptcy.

Are you looking to buy a new home? Are you thinking that now’s a great time to find bargains? Before you make an offer, it pays to know a little about the seller’s situation.If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale. Many more home owners are finding themselves in this situation due to a number of factors, including job losses, aggressive borrowing against their home in the days of easy credit, and declining home values in a slower real estate market.

A short sale is different from a foreclosure, which is when the seller’s lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You’re a good candidate for a short-sale purchase if:

• You’re very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale.
• Your financing is in order. Lenders like cash offers. But even if you can’t pay all cash for a short-sale property, it’s important to show you are well qualified and your financing is set. If you’re preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
• You don’t have any contingencies. If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

If you’re serious about purchasing a short-sale property, it’s important for you to have expert assistance. Here are some people you want to work with:

• Experienced real estate attorney. Only about two out of five short sales are approved by lenders. But a good real estate attorney who’s knowledgeable about the short-sale process will increase your chances getting an approved contract. Also, if you want any provisions or very specialized language written into the purchase contract, a real estate attorney is essential throughout the negotiation.
• A qualified real estate professional.* A qualified real estate professional will be able to show you short-sale homes, help negotiate the purchase when you find the property you want to buy, and smooth communications with the lender. (All MLSs permit, and some now require, special notations to indicate that a listing is a short sale. There also are certain phrases you can watch for, such as “lender approval required.”)
• Title officer. It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it’s much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval. If you don’t know a title officer, your real estate attorney or real estate professional should be able to recommend a few.

Some of the other risks faced by buyers of short-sale properties include:

• Potential for rejection. Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months. Or the lender could make a counteroffer, which will lengthen the process.
• Bad terms. Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.
• No repairs or repair credits. You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

* Not all real estate practitioners are REALTORS®. A REALTOR® is a member of the NATIONAL ASSOCIATION OF REALTORS® and is bound by NAR’s strict code of ethics.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA. 

Happy October!  There are so many things in Huntsville and Madison that it can become overwhelming.  If you know any new families in the area please share this blog with them so that they can become better informed of events here!  Please call me if you have any questions 256.503.5707!

Downtown Huntsville

Thursday, 01 STACY MITCHHART  ::  Crossroads
Open Mic Night w/Ben Trussell  ::  Voodoo Lounge
Ben Deignan  ::  Humphrey’s Bar & Grill
LADIES NIGHT with DJ Keibot  ::  Sammy T’s Music Hall
Kaffeeklatsch- Dave Anderson  ::  KaffeeKlatsch
 
Friday, 02 Josh Garrett and The Bottom Line  ::  Humphrey’s Bar & Grill
Fat Momma  ::  Voodoo Lounge
Chad Bradford Band  ::  Furniture Factory
RYAN BINGHAM AND THE DEAD HORSES  ::  Crossroads
Sammy T’s- Friday Night $3 For All  ::  Sammy T’s Music Hall
 
Saturday, 03 Old Union  ::  Humphrey’s Bar & Grill
DOWNSTROKE  ::  Sammy T’s Music Hall
WRONG WAY ( A TRIBUTE TO SUBLIME )  ::  Crossroads
Dawn Osbourne Trio  ::  Voodoo Lounge
Rob Aldridge  ::  Furniture Factory
 
Sunday, 04 CLOSED  ::  Humphrey’s Bar & Grill
KaffeeKlatsch- Sunday night blues jam  ::  KaffeeKlatsch
Karaoke w/ DJ Brandon Mac  ::  Voodoo Lounge
 
Monday, 05 Scott Morgan - Open Mic  ::  Humphrey’s Bar & Grill
KaffeeKlatsch- Acoustic Open Mic Night  ::  KaffeeKlatsch
Happier Hours  ::  801 Franklin
 
Tuesday, 06 Watson and Nash  ::  Humphrey’s Bar & Grill
 
Wednesday, 07 Son of Sanchez  ::  Furniture Factory
Toy Shop  ::  Humphrey’s Bar & Grill
 
Thursday, 08 LADIES NIGHT with DJ Keibot  ::  Sammy T’s Music Hall
Cash  ::  Humphrey’s Bar & Grill 

Huntsville Urban Network

October 3
Christmas Charities Year Round and Councill High Alumni Association presents the 3rd Annual 5K race and 1-mile Fun Run
Councill High School next to Huntsville Library
7am Registration | 8am 5K Begins | 9am 1-mile Fun Run begins
$15 Advance | $20 Race Day
For more information please visit www.christmascharitiesyearround.org, or call  837-2373, or email violet@christmascharitiesyearround.org

October 3
Word, Sound and Power presents The Cipher
Featuring Glenwood of Birmingham | Performances by WSP Spoken Word Artists | Hosted by Jabhu
Courtyard by Marriott, 4804 University Drive | 8pm
Cost: $7 | With new childrens’ book $5
Conact: 256-604-9922

October 7 and 21 (1st and 3rd Wed of the month)
Wednesday Salsa Night
Club Rush, 109 North Side Square (formerly the Jazz Factory)
7pm to 10pm | $5 | Free Lessons at 7pm

October 15
UAH Office of Multicultural Affairs presents the Real Talk Brown Bag Luncheon entitled, “Cultural Identifiers: The Different -isms To Confront and How Identifies Blend and Blur | Featuring Dr. Louis Dale, Vice President for Equity and Diversity at UAB
Material Science Building, Room 112 | 11am to 2pm
Registration by Oct 5 | Contact: 256-826-8224

Activities at Lowe Mill

Thursday - October 1st - Heap Us ‘Round Our Ruins: An Interstate
Film Circuit - 8pm - Admission $5

 Heap Us ‘Round Our Ruins: An Interstate Film Circuit
<http://www.round-our-ruins.com/>
 - Admission $5 (8pm)

Thursday - October 1st - Rocket City Film Festival Submission
Deadline -  Submission will be accepted in person at the Flying Monkey until
10/3’s Artist Market

Friday - October 2nd – Friday Night Concerts on the Back Dock –
Golden Ticket – 6pm-9pm - Admission Free

Friday Night Concerts on the Back Dock – Golden Ticket - Come
enjoy these guys take on the dock. They are a guitar and fiddle duo
that focus on folk/singer songwriter music.

Friday - October 2nd - Flying Monkey First Friday Open House -
5pm-8pm - Admission FREE

Flying Monkey First Friday Open House - Admission FREE - Local
artists and others are invited to set up a booth at the Flying Monkey
Arts Center and sell their wares to the public. There will be art,
jewelry, vintage clothing, records, and more interesting things for
sale inside our facility - safe from rain.

Friday - October 2nd - Monkey Speak - 8:30pm - Admission $5

Monkey Speak
<http://profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendid=187926773&MyToken=ef660682-ece0-484e-97fa-f2ebe8cf5d91>
- Admission $5 (8:30pm) Monkeyspeak is Huntsville’s most exciting
spoken word open-mic night, held the first Friday of every month.
Readers of poetry, short stories and more are invited to participate.
Mature audiences only.

Saturday - October 3rd - Flying Monkey - Rich Curtis - 1pm -
Admission FREE

Rich Curtis – Performance Art - Performance in a Shoebox -
Admission FREE - 1pm - 2pm This performance examines the physical and
psychological compartments that humans intuitively construct to order
their lives.

Saturday - October 3rd - Flying Monkey Theater - The Shaking Ray
Levis - 8:30pm - Admission $5

 The Shaking Ray Levis <http://www.myspace.com/theshakingraylevis>
 - Admission $5 (8:30pm)

Sunday - October 4th - The Film Co-op - 2pm-4pm - Admission FREE

The Film Co-op monthly workshop meets in Don’s Studio, Admission
FREE - (2pm - 4pm) Specific Topics To Be Announced. Also, if you have
a work in progress that you would like to discuss, bring a sample to
show. Open to all, public invited. For more info, call Don at
457-5371.

TWINED BASKETRY ON A GOURD BASE

Using reed and sea grass students will add a basketry top to a
prepared gourd base. The technique of twining is easy to learn and
very satisfying. Basic gourd preparation will be covered along with
the use of nontoxic dyes. All materials will be provided, but students
must bring a pail (for soaking materials), a pair of scissors, and a
hair dryer or heat tool if they have one.

Skill level: All Two dates of same class 8/29, 10/3, or 11/21

To register for class contact: David Edwards 256-533-0399
davidatlowemill@me.com <mailto:davidatlowemill@me.com>

For more information contact: Mary Segreto, mary@mardigourds.com
<mailto:mary@mardigourds.com>
 or call 205-841-2111

Time: 10AM – 2PM Class size: min., 8, max., 15 Cost: $55

EVERETT COX’S STUDIO - FIGURE SCULPTURE CLASS

Tuesdays & Thursdays - 6:30-9 PM – Lowe Mill Foundry / Everett
Cox’s Studio –Figure Sculpture Class - $300 for 5 weeks - 2 nights
a week Tuesdays & Thursdays - Learn to sculpt the human figure from
life. Price includes all initial supplies. Students will end up with
one finished piece in clay. There is an alternate Saturdays only class
at 3 PM till 6 PM for $200 starting October 3rd and lasting till
October 31st.

Additional Events

October 2-3
Tennessee Valley Old Time Fiddlers Convention–Athen
Admission charged. Fri., noon until; Sat., 8 a.m. until at Athens State Univ.—Music lovers and musicians from more than 30 states come together for one of the largest fiddlers convention in the nation. Competition in 18 categories, more than 150 booths, tasty treats, arts and crafts. For more information, call (256) 233-8200.

October 2-3
Huntsville Dragway
Admission charged. Fri. 5 pm, Sat. 3 pm at 502 Quarter Mountain Road, off Jordan Lane (Highway 53) in Harvest. Test & Tune & R&R Bracket Series & HP Jr. Dragster Series.. For more information, call (256) 859-0807.

October 3
Five Points Walking Tour
Free. 10:00 am at Maple Hill Cemetery, corner of Wells & Maple Hill Drive. Huntsville’s newest locally designated historic district encompasses architecture from the 1890’s through the 20th century. A guide will share unique & interesting stories about these quaint Victorian homes & bungalows. For more information, call (256) 533-5723.

October 3
Madison Street Festival
Free. 8:45 AM-5 PM in Downtown Madison. Enjoy a parade of local community organizations, schools & civic clubs, entertainment throughout the day, children’s activities, trades, food vendors. For more information, call (888) 228-5845.

October 9-11
Gem & Mineral Show
Admission charged. Fri.-Sat. 10 AM & 6 PM & Sun. Noon-5 PM in East Hall of Von Braun Center. This is a great opportunity to get that one-of-a-kind piece of jewelry, beautiful stone or Christmas present. Over 30 vendors will be displaying gems, minerals, fossils & jewelry for sale. Local club members will provide educational exhibits & demonstrations on related topics, including beading & wire wrapping. For more information, call (256) 880-2291.

Are you considering selling your home?  I think it’s important to prepare yourself for what the appraiser will will say about your property.  This week’s post seeks to help you understand what to expect during the appraisal process by sharing information on how appraisers reach their property value estimates.

By Barbara Ballinger  | April 2009 

Here are some of the factors that appraisers Joni L. Herndon of Real Property Analysts/Gulf Coast in Tampa, Fla., and John A. Hillas of Hulbert & Associates Inc. in Modesto, Calif., say they consider when determining value.    

* Incentives and concessions. Most of today’s buyers expect to pay the lowest possible price and still get some extras. Sellers and home builders are offering money toward closing costs, remodeling and decorating, upgrades, and association dues. The price set initially may not be the final price once concessions are factored out. Appraisers care about that final number.    

* Closing date. Forget what comparable neighborhood houses sold for a few months back. Appraisers want prices from the most recently closed transactions. “If a sale was more than 45 days ago, even 35, the price may be irrelevant,” Hillas says.    

* Condition and curb appeal. Appraisers typically find several properties with similar interior and exterior features to determine value. When markets are healthy, blemishes matter less, but when markets soften, problems—a dated kitchen or barren lawn—can reduce prices and deter buyers. “The difference in value is not just the repair costs but the time and hassle to make them. It’s better for sellers to do work in advance,” Hillas says.    

* Foreclosures. Appraisers technically shouldn’t consider neighborhood foreclosures when valuing a home, since foreclosures don’t meet the Appraisal Institute’s definition of a property reasonably exposed in a competitive market, says Herndon. “But when several neighborhood homes are abandoned, it’s hard not to caution sellers that this is a troubling trend and may affect home values,” she says.     

* Changing demographics. If a house is in an up-and-coming area, the value can be expected to rise. A location that’s perceived as safe also may help attract the increasing number of single female buyers.    

* Economic clouds. If there’s an oversupply of comparable homes for sale, or if the local job market is suffering, buyers may be hesitant to invest. Hillas advises setting prices aggressively from the get-go. 

* Chemistry. It’s hard to account for those times when buyers fall in love with a house, despite a high price, poor condition, or tough economy. “Emotional attachment is a factor that can’t be predicted,” says Herndon. Hillas agrees, “It’s what makes it harder to appraise homes versus commercial buildings, where buyers care more about the bottom line.”

Huntsville, AL — (September 16, 2009)— Home sales in Huntsville Madison County began their seasonal decline in August according to new data prepared by the Huntsville Area Association of REALTORS® (HAAR) with home sales slowing by 15.90 percent from July 2009 and in line with the 2008 decline of 15.77 percent. The trend reflects a net difference of 0.13 percent decrease in sales compared to the same period last year.

The August single family home median price decreased by 1.71% from July of 2009. At $172,000, the August 2009 single-family home median price – the figure at which half of the homes sold for more and half sold for less – decreased by 7.03 percent compared to August 2008.

“This overall economic recovery will be a long and gradual one, however all indications continue to show that the Huntsville Madison County housing market is on strong footing, particularly when it comes to sales, housing inventory and home prices,” said Oscar Gonzales, HAAR CEO.

Available Properties The number of available properties (active listings) in August decreased by 2.89 percent or 87 active listings compared to August 2008. There were however 19 more active listings compared to July 2009, reflecting a slight increase in inventory and well within seasonal norms. The Huntsville Madison County area month’s inventory of single-family homes for July came in at 8.06 months compared to the national month’s inventory of single-family homes, which is approximately 10.2 months, according to the National Association of REALTORS® (NAR).

Days on Market

The August 2009 Average Days on Market (DOM) increased by 1 day to 92 compared to July 2009 and decreased by 12 days from August 2008.

Month’s inventory estimates the number of months it will take to deplete current active inventory based on the prior 12 months sales activity. This figure is representative of the single-family homes market. 

Real Estate Milestones in August

Home sales in Huntsville Madison County began their seasonal decline in August with a net difference of 0.13 percent decrease in sales compared to the same period last year.

The August single family home median price decreased by 1.71% from July of 2009.

The number of available properties (active listings) in August decreased by 2.89 percent or 87 active listings compared to August 2008.

The August 2009 Average Days on Market (DOM) increased by 1 day to 92 compared to July 2009 and decreased by 12 days from August 2008.

# # #

The computerized Multiple Listing Service, the North Alabama Multiple Listing Service (NALMLS) a subsidiary of the Huntsville Area Association of REALTORS® includes residential properties and new homes listed by 3,000 Realtors in North Alabama. Residential listing information for more than 2,900 properties may be found on the Internet at http://www.valleymls.com

The information published and disseminated to the North Alabama Multiple Listing Service (NALMLS) is communicated verbatim, without change as filed by MLS participants.

The MLS does not verify the information provided and disclaims any responsibility for its accuracy. All data is preliminary and subject to change. Monthly sales figures reported include a statistical estimation to account for late entries. Twelve-month totals may vary from actual end-of-year figures.

Founded in 1948, the Huntsville Area Association of REALTORS® (HAAR) is a 2,000 plus-member organization of real estate professionals engaged in every aspect of the industry, including residential and commercial sales and leasing, appraisal, property management and counseling.

Happy weekend everyone!  Tonight begins Oktoberfest on the Arsenal and other great events across Huntsville.  If you are looking for a way to get involved in the community and meet new people, I would recommend that you attend at least one of these events over the next week.  Be bold and be brave! 

There are so many things in Huntsville and Madison that it can become overwhelming.  If you know any new families in the area please share this blog with them so that they can become better informed of events here!  Please call me if you have any questions 256.503.5707!

Downtown Huntsville

Thursday, 17 Juice Trio  ::  Humphrey’s Bar & Grill
LADIES NIGHT with DJ Keibot  ::  Sammy T’s Music Hall
Kaffeeklatsch- Dave Anderson  ::  KaffeeKlatsch 

Friday, 18 Breakers  ::  Furniture Factory
***Rooster Blues (Hattiesburg, MS)***  ::  Voodoo Lounge
Lance Alman Smith  ::  KaffeeKlatsch
Gary Pfaff and The Heartwells  ::  Humphrey’s Bar & Grill
Sammy T’s- Friday Night $3 For All  ::  Sammy T’s Music Hall 

Saturday, 19 Steve Ganz and the Geezers  ::  KaffeeKlatsch
Five O’Clock Charlie  ::  Humphrey’s Bar & Grill
***Jessica Dawn (Nashville, TN) & Lacey Atchison** …  ::  Voodoo Lounge
Rob Aldridge  ::  Furniture Factory
MOTHER PANDORA  ::  Sammy T’s Music Hall 

Sunday, 20 KaffeeKlatsch- Sunday night blues jam  ::  KaffeeKlatsch
CLOSED  ::  Humphrey’s Bar & Grill 

Monday, 21 PUNK SHOW ***Thomas Function w/ Yussuff Jerusalem* …  ::  Voodoo Lounge
KaffeeKlatsch- Acoustic Open Mic Night  ::  KaffeeKlatsch
Happier Hours  ::  801 Franklin
Microwave Dave - Open Mic  ::  Humphrey’s Bar & Grill
 
Tuesday, 22 Cristina Lynn and Chuck Rutenberg  ::  Humphrey’s Bar & Grill
Alex and Colin from Seducing Alice  ::  KaffeeKlatsch
 
Wednesday, 23 Kozmic Mama  ::  Humphrey’s Bar & Grill
Chad Bradford Duo  ::  Furniture Factory
 
Thursday, 24 Microwave Dave and The Nukes!  ::  Humphrey’s Bar & Grill
Sarah Bettens (of K’s Choice) with special guest M …  ::  Crossroads
LADIES NIGHT with DJ Keibot  ::  Sammy T’s Music Hall
Kaffeeklatsch- Dave Anderson  ::  KaffeeKlatsch 

EVENTS!!!!

September 17-20
Oktoberfest
Admission charged. Thurs. 5-11 pm, Fri. 5 pm-1 am, Sat. Noon-1 am & Sun. 1-8 pm at Redstone Arsenal Activity Field, enter Redstone Arsenal through gate 10, go south on Patton Road. Vendors will serve up traditional German fare, as well as all-American hamburgers & hot dogs. Plenty of German spirits also will be available. For more information, call (256) 876-5232.

http://www.redstonemwr.com/news_&_events/pdf/FAQ-ofest.pdf 

September 18-19
Decatur Riverfest Barbecue Cook-Off
10 a.m.-midnight in Ingalls Harbor, Hwy. 20 W.–Alabama State Barbecue Cook-Off Championship featuring barbecue teams from throughout the U.S., live musical entertainment, and more. For more information, call 800-524-6181.

September 18-20
NEACA Fall Craft Show
Free. Fri.-Sat. 9 am-7 pm & Sun. Noon-5 pm in Von Braun Center South Hall, 700 Monroe Street. Various types of needlework, ceramics, flower arrangements, jewelry, decorated & hand-woven baskets, pottery, stained glass, clothes,toys, woodwork & other items are featured. For more information, call (256) 533-1953.

September 18
Five Feathers Motorcycle Rally
Free. 5:30-10:30 pm in In Oldtime Pottery Barn parking lot, Madison. Come & enjoy Indian drumming & dancing, POW/MIA ceremony, ladies ride, Bug Run, live bands, biker games & custom bike show. For more information, call (256) 325-8317.

September 18-Oct 31
Smith Farms Corn Maze—Hartselle
Admission charged. Fridays & Saturdays 7:00 P.M. till 11:00 P.M. Haunted corn maze, fun maze,& kiddie maze. Haunted house & fun house. Pumkin patch. School tours Location:Smith Farms Hartselle, Alabama.

September 18-19
Huntsville Dragway
Admission charged. Fri. 5 pm, Sat. 3 pm at 502 Quarter Mountain Road, off Jordan Lane (Highway 53) in Harvest. Test & Tune & R&R Bracket Series, HP Jr. Dragster Series. For more information, call (256) 859-0807.

September 18-20
Quilt Show: Fan Fare
Admission charged. Fri.-Sat. 9 am-6 & Sun. 11 am-4 pm in Von Braun Center East Hall, 700 Monroe Street. Along with quilted items made by the Heritage Quilters Guild members, vendor booths will sell fabric patterns, quilt frames & other quilt-related commodities. For more information, call (256) 830-0638.

September 19
Trail of Tears Remembrance Motorcycle & Native American Pow Wow—Florence
Free. McFarland Park–A celebration of Native American history with storytelling, demonstrations, arts, crafts, and food vendors, and three-day Pow Wow. For more information, call 877-868-8747.

September 19
Bridgeport Jubilee
Free. 9 a.m. - 9 p.m. at Bridgeport Train Depot Museum–Enjoy musical entertainment throughout the day including blue grass, gospel, and local talent. Also food vendors, silent auction, arts & crafts, antique car show, motorcycle show, children’s activities and more. For more information, call (256) 495-2727 or (256) 495-3114.

September 19
Hartselle Depot Days Festival—Hartselle
Free. 8 a.m.-5 p.m. in Hartselle Downtown District–A festival celebrating the history of the railroad and its contribution to Hartselle with an antique car and tractor show, arts and crafts, live entertainment, a featured entertainer, games, food. For more information, call (256) 773-4370.

September 19
Monte Sano Art Show
Free. 9 am-5 pm in Monte Sano State Park, Picnic Area. This show, held on a scenic bluff, is in a relaxed atmosphere filled with good music, good food & good fellowship along with great art, is fast becoming the premier outdoor venue for regional artists. For more information, call (256) 361-4960.

September 19
Trail Of Tears Motorcycle Ride
Free. Arrive approx. 10 am, leave approx. 11 on Old K-Mart parking lot, Madison Boulevard/Highway 20. Each September a national convoy of motorcycles retraces the route Cherokee Indians followed during their forced relocation by the U.S. Government. For more information, call (256) 218-0753.

September 19-26
Racking Horse World Championshi—Decatur 6:30 p.m. at Celebration Arena, Hwy. 67 E.–Culminating event for the Racking Horse Breeders Association with crowning of Racking Horse champion. Also, enjoy a fish fry celebration. For more information, call (256) 353-7225.

September 25-27
Big Spring Jam
Admission charged. Fri. 5:30-Midnight, Sat. 4 pm-Midnight & Sun. 4 pm-10:30 pm in Big Spring Park, Downtown Huntsville. Huntsville’s biggest music festival of the year. Tens of thousands of music lovers from Alabama & surrounding states gather to enjoy professional acts representing the best of country rhythm & blues & rock, jazz. Food available onsite. For more information, call (256) 551-2359.

September 25-26
Huntsville Dragway
Admission charged. Fri. 5 pm, Sat. 3 pm at 502 Quarter Mountain Road, off Jordan Lane (Highway 53) in Harvest. Test & Tune, R&R Bracket Racing & HP Jr. Dragster Series. For more information, call (256) 859-0807.