Friday, May 30, 2014

Foreclosures Slide May be Good News for NOLA Homeowners

When the number of foreclosures decreases, it’s not without impact for NOLA homeowners and investors. In any given month, NOLA foreclosures may not always mimic the national averages, but over the long run, they do tend to be pretty close. And the national trend is clear: first quarter foreclosure activity decreased to the lowest level since the second quarter of 2007 (‘activity’ includes default notices, scheduled auctions and outright bank repossessions).
Recent figures from RealtyTrac, the leading source of housing data, put U.S. foreclosures at their lowest levels in seven years. The 42-month national decrease had been momentarily interrupted by a 4% rise in March, but even with that momentary hiccup, foreclosure rates were still 23% below 2013 levels. RealtyTrac calculates that there were just over 30,000 bank repossessions in the U.S. in April—a slight uptick from the previous month, but still a full 14% lower than a year ago.
·         One Reason Why
Rising prices mean that more people have positive equity in their homes. In the second quarter of 2013, 2.5 million of the homeowners who’d been underwater found themselves back in positive territory. As property prices continue to rise in 2014, more homeowners are moving out of the negative equity trap.
·         Many Foreclosed-On Homeowners Still in Their Homes
Although the 2007 downturn led to a surge foreclosures, many homeowners have stayed in their properties. It’s estimated that currently half of all bank-owned properties are occupied by either the original owner or the tenant.
·         More Work for Investors
A significant proportion of NOLA buyers in the post-2007 market were investors bold enough to capitalize on bargain prices for properties. When national and NOLA foreclosures decline, it indicates that fewer distressed properties will come up for sale. That means more competition for them, and fewer acceptances for lowball offers. Ultimately, it signals a shift toward more owner-occupiers.
·         Drop Isn’t Everywhere
While the national charts show a steady decrease in the number of foreclosures, the trend is not universal. And there’s another reason investors can still find some opportunities. The number of scheduled foreclosure auctions in the judicial process hit the highest level in three years in 2013. This suggests that, while fewer homes are falling into foreclosure, more of those in the works are getting close to reaching the end of the line. It’s a painful process, but when the smoke clears, will serve to help rebalance the real estate market.
 The drop in foreclosures is a good indicator of the health of the current market. Rising property prices and an improving economy mean that fewer homes are ending up in the hands of the banks—news that all homeowners should be happy to hear. For an update on the foreclosure activity in your NOLA neighborhood, contact me today for a detailed property pricing report. 




Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.



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Thursday, May 29, 2014

Summertime Open House in Metairie: the Timing is Perfect!

Estimates so far indicate that summer 2014 is likely to be a better than usual season for Metairie home sales. The past winter threw a wet blanket over all kinds of business activity, creating a perfect scenario for a sales bounce back—and that’s exactly what is beginning to show up in the stats. As Bloomberg News reported last week, sales of homes “climbed in April for the first time in three months…the biggest in six months…”
If you will be taking advantage of the uptick by listing your property for this summer’s market, having an open house in Metairie is a prime way to attract prospective buyers. With a little focus and energy, getting your home in shape can be easier than you might imagine. The checklist is short:
Landscaping
The place to begin is with the landscaping—it frames the picture that’s the first thing buyers see when they pull up during the warm months. If you don’t have summer flowers planted, that’s okay—improvise! Purchase a few hanging baskets and potted plants. Place them along pathways, the entrance, and other places that could use a little bit of color. Hose the exterior, but if the years have been too tough, you may need a refresher coat of paint or trim. Perk up the lawn with an easy-to-apply lawn food spray; edge where needed; then mow and admire!
Get a Fresh Outlook
Give your windows a good cleaning (outside first)—it’s surprising the amount of sparkle that simple job can add to your Metairie open house. Air the house thoroughly as you do a deep clean where it’s needed: usually a shampoo of carpets and rugs will accomplish the lion’s share of the work. Add some summer color to your rooms with fresh throw pillows, and as your open house draws near, see where a few well-placed floral arrangements would add bright color to draw the eye.
Last Checks
Before the day of your open house, there are a few more quick checks to be made. Walk around the house. Are the air conditioner units clean? Are the gutters and rain spouts in good shape? Outdoor spaces are great selling points to make your home more attractive to buyers, and a summertime Metairie open house creates the perfect opportunity to show them off. There are always a few little things you’ve been meaning to attend to…now is the time!  
Looking for more open house tips? Call me today if you’re thinking of listing your Metairie home for sale. We can discuss a marketing plan to get your home S-O-L-D this summer!




Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.






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Wednesday, May 28, 2014

Could New Orleans Property Sales Actually be Made in Bitcoins?

Would you be willing to sell your New Orleans property to a buyer who is offering virtual currency?
In recent news, there has been an influx of people who are putting their homes up for sale in Bitcoins. It may be actually worthwhile to consider the upsides, because doing so opens up your New Orleans property to a vast new market (not to mention potentially garnering the attention of your local media and scads more traditional buyers who are in their audience).
You may have read last December’s reports about the man who tried to sell his ranch-style home in New York for $799,000 worth of bitcoins. Another seller, a 22-year-old Canadian man, put up his advertisement in March. He had the distinction of being the first one in his town to advertise a home in exchange for the popular digital currency.
Now in case you’ve been putting off trying to figure out what Bitcoin actually is, perhaps I can save you some trouble. It’s an open source and decentralized peer-to-peer payment system that allows its users to buy and sell in virtual cash.
In case that sounds like gobbledygook, in the simplest terms, it’s a system where you don’t need to have real, government-minted cash to close a transaction—all you need is an online “bank account” with enough Bitcoin to pay for its dollar equivalent. Bitcoin’s primary attraction is to those who feel queasy about the stability of traditional currency, especially those who fear inflation. Their fears are quelled by Bitcoin’s creators, who guarantee that only a certain amount of Bitcoin will ever be allowed to circulate. Apparently, many people believe them.
Bitcoin might be new (introduced in 2009), but it is gaining more and more popularity. Even businesses like Overstock.com, Virgin Atlantic, the Sacramento Kings, TigerDirect, Atomic Mall, Clearly Canadian, and Zynga now accept bitcoins. As more credible parties accept them, the more credible the phenomenon becomes.
How could it help you sell your New Orleans property? Many people who are using the services of online advertisers are technologically savvy, and usually aware of how Bitcoin is fast becoming a popular payment system for online transactions. Compared with credit cards which generally charge 2 to 3% in transaction fees, Bitcoin fees are much lower—practically negligible. Because it currently resides in such a small market niche, that target audience is especially attentive to Bitcoin-traded products. There is also the likelihood that at least some traditional buyers who stumble across such a unique offering will find themselves intrigued enough to investigate your property further. You may even make the news. Talk about free advertising!
Whether or not you’re a Bitcoin believer—if you’re ready to sell your property in New Orleans this summer and want state-of-the-art marketing input—I’m your agent. Call me today to discuss a marketing plan that, Bitcoin or not, is designed to bring in the buyers!




Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.





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Tuesday, May 27, 2014

Buying a Home: What’s New in Flood Insurance

 When Metairie residents hear about floods, images of homes tumbling into the sea or half-submerged along the banks of a raging river probably leap to mind. But the risk of flooding isn’t confined to those headline-grabbing catastrophes—which is why the recent passage by Congress and signing by the President of the Homeowner Flood Insurance Affordability Act (HFIAA) will be of interest to many people thinking of buying a home.
Sellers are required by law to disclose if a property is in an officially-designated flood zone; and banks typically check this information as well. While it can certainly be off-putting to be informed of this when buying a home, the availability of flood insurance can keep it from being a deal-breaker. But “available” doesn’t necessarily mean “affordable”—which is where HFIAA comes in.
Many prospective Metairie homebuyers are only vaguely aware that flood and water damage are not covered under traditional homeowner policies, something that’s newly relevant when buying a home. Part of the reason is because only 5% of the U.S. population lives in an officially designated “Coastal Flood Plain”—so it’s not a much-discussed issue in most parts of the country.
But the coastal areas that do get attention whenever disaster strikes are not the only kinds of flood plains that are relevant. FEMA assesses and maps areas that are subject to flooding, and assigns them letters denoting the likelihood of flood damage. Some of the provisions of the new HFIAA deal with overhauling those procedures, but the most immediately significant parts deal with (you guessed it) cost.
Here a little history will be helpful. In 1968, the National Flood Insurance program was created to help some property owners secure insurance in areas where it had been prohibitively expensive. But, as one might expect, the cost of the program soon became a problem. That in turn triggered passage of another Act—the Biggert-Waters Flood Insurance Reform Act of 2012—intended to allow premiums in covered areas to rise to offset their real costs.
The new HFIAA now partially reverses that yet again, because policy-makers fear the effect on the housing market. The new act delays some of the price rises for four years and allows homeowners who sell their homes to pass the lower premiums on to the new homeowners. It’s also relevant that there are two different types of coverage available: dwelling only and dwelling/property. Although dwelling only coverage is cheaper, as you might expect, there’s a good reason: it doesn’t cover the personal belongings that a flood could destroy.
Some zones, like Zone X, are as inexpensive as a few hundred dollars per year. The zones that flood more regularly can run into thousands…and all flood insurance premiums are in addition to the regular home insurance costs. For those buying a home in an area where properties might be classified as within a flood zone, it’s a good idea to check with one of the local insurance companies that offers flood coverage. When all is said and done, only you can decide if it’s worth the risk or not.
If you are thinking of buying a home in Metairie this summer, flood insurance is only one of the details you’ll want to consider. Call me today and we can begin by putting together a list of your search criteria.



Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.


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Thursday, May 22, 2014

Selling During the Outdoor Months Means Exterior Staging

View Homes For Sale in Metairie, LA
As the days grow longer and the thermometer rises, everyone wants to start spending more time outdoors—to make full use of our yards and patios. But what if your Metairie home is going to be on the market this summer? Does it mean you have to stop enjoying yourself, stop entertaining guests, just because you want to keep the place in showable condition?
The answer is, of course, of course not. Using the outdoor spaces of your home means striking a balance between living your life and ensuring everything is in top condition when buyers come calling. It’s actually a staging opportunity, because most of your prospective buyers will be favorably impressed if your outdoor staging areas make it easy to picture themselves enjoying our beautiful Metairie summer weather. 
Staging your home’s landscaping thus takes added importance during summertime, beginning with overall curb appeal. Any time of year, potential buyers are often swayed by that first impression: as they approach the house, the impact will be one they’d like their own future visitors to have. Staging an inviting front yard appearance does wonders for your selling prospects.
Make sure your lawn is trimmed and the yard edged. During springtime and fall, a 2”-3” grass length is recommended, but as the hotter summer months approach, longer grass will help shade the soil and keep roots comfy. Minimize brown spots and thin patches by giving the blades an extra half inch.
Staging walkways and driveways means keeping cemented areas free of volunteer growing things. Having weeds, clover, or anything sprouting between stones or pavement is not only unsightly, it brings to mind the work required for upkeep (a turnoff to prospects). Although chemical herbicides are popular, an eco-conscious (and penny-conscious) alternative is plain old kitchen vinegar.
The most important staging advice for the outside of the house is that it give the impression that a fresh coat of paint won’t be needed for quite a while. Cleaning it can be enough, or if not, new paint may be needed. You can opt for professional painting, but if your home is sided, or if you’ve recently (within the past five years) had your home painted, pay attention to details like windows and other smaller touchups you can easily do yourself.
If staging the back (and possibly front) yards is likely to be a really important part of marketing your Metairie home, give some attention to outdoor furniture. It’s expensive stuff, so if it’s going to really be a key selling point for the property, it might be worth the effort to really make the space shine. If you don’t have any outdoor furniture (and don’t plan to need any in your new house), consider hiring a stager just to handle the exterior spaces.  Less expensive than a full home staging, exterior staging can make a huge difference in the overall appeal of your Metairie home during the outdoor months.
Once you’ve revitalized of your home’s outdoor areas, keeping it in top showing condition need consist of little more than the regular weekly yard work and cleanup, a relaxing prospect for enjoying your property throughout the good weather months. And do give me a call—I’m standing by to take care of the rest!
View Homes For Sale in Metairie, LA


Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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Wednesday, May 21, 2014

Metairie Mortgage Applicants May Benefit as Guidelines Change

“U.S. Backs Off Tight Mortgage Rules” screamed the top headline on the front page of The Wall Street Journal last week. For Metairie mortgage shoppers, it could scarcely have been better news. Probably.
‘Probably’ because any change is not yet a done deal, but it’s hard to see what will derail the likely full reverse of the federal establishment’s years-long tight home loan policy. Why is this suddenly in the cards? The full answer is complicated, but here is a quick (admittedly over-simplified) summary of what’s been happening to Metairie mortgage applicants—and what probably lies ahead.
The ongoing real estate recovery has been less of a boon to banks (including Metairie’s mortgage originators) than to other participants because of tightened lending guidelines. Since the economic meltdown had been triggered by the crash of too many ‘easy money’ mortgages that had been repackaged and sold to Wall Street investors, regulators created mortgage guidelines that were much stricter.
Although borrowers found it harder to qualify for mortgages, at the same time, the Federal Reserve held interest rates at such bargain-basement levels real estate sales hummed. But first-time borrowers found it hard to qualify.
But lately, observers of the national scene have been worrying. Over the past months, the gradual cooling of real estate activity may have been welcome in the sense that the torrid rate of activity had slowed from an unsustainable pace—but some economists began to fret. Even though there was still some growth, now there wasn’t enough—and that could stall the recovery for the whole economy.
Washington has decided to listen to the worrywarts: hence last week’s WSJ headline story. It reported on the first speech delivered by Mel Watt, the new boss of Fannie Mae and Freddie Mac, the mortgage giants whose policies largely guide what happens when you apply for a Metairie mortgage.
Among a number of other rules, there had been in place a basic guideline calling for minimum 20% down payments (and punishing repercussions for banks who didn’t agree). But one result came as a surprise to regulators: lenders were newly fearful of requirements that might penalize them for even reasonable loans that went bad, so they became even tougher than the guidelines! Real estate loans began to dry up. It had been hoped that private lenders would take the place of Fannie and Freddie, allowing the government to gradually back out of its leading role. But the lenders sat on their wallets.
Of his decision to lighten up on credit barriers, Mr. Watt explained that he hoped “that lenders will start operating more inside the credit box that Fannie and Freddie” provide. In other words, that mortgage originators will add to the easing effect by hewing to the guidelines instead of exceeding them. If so, we can expect an influx of long-frustrated first-time homebuyers.
If you have been thinking of offering your own Metairie home for sale anytime soon, that should be a most encouraging development!





Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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Tuesday, May 20, 2014

Your Metairie Home is a Lemonade-Making Opportunity!

View Homes For Sale in Metairie, LA
The sunny attitude that encourages entrepreneurs to look at a box of lemons and think ‘lemonade!’ is widely admired, and it does seem to be a viewpoint that successful people cultivate. For anyone who is determined to sell their Metairie property—but only at a price the market is not yet willing to pay—well, the turn-lemons-into-lemonade situation is entirely apt. After all, smart investors are buying up and renting properties like yours quite deliberately because they realize that a Metairie rental home is not just an asset that can appreciate over time, but one that can also produce income at the same time. 
Whatever your own reason for renting, when you put a rental home in Metairie on the market, experienced landlords tend to prepare in the same general areas:

1. Repairs and Safety

Often using a rental safety checklist, a good first focus is on heating, plumbing, and other safety issues. Especially if you have been a longtime resident of the property, remember that some operational issues that you may have grown accustomed to ignoring need to be brought up to snuff. Repairs made now will save you time and money in the long run, and will safeguard against increased damage (and worse issues down the line). Be sure fire alarms and carbon monoxide detectors are in place, and double-check that all windows, doors, and locks are in good working order.

2. Make it Pretty!

Of course, clean the house thoroughly, including closets, fixtures, and appliances. Replace dirty carpets, polish wood floors, and remove debris and trash from the entire property (if a one-time rubbish bin rental is called for, bite the bullet!). Where needed, give each room a fresh coat of paint in neutral colors; and outside, tidy up the grass and landscaping.

3. Documentation

Plan to inspect and document your Metairie rental home before tenants move in; then once again immediately after they move out. It’s imperative; will serve as documentation of damage caused by the tenant if that warrants withholding the security deposit for repairs. Photos, a checklist—even a quick iPhone video—can do the job.

4. Landlord Insurance

AKA rental property insurance, landlord insurance is not the same as renters insurance, which covers the tenant’s property. A good landlord insurance policy protects you; it should cover everything from major damage inflicted by tenants to legal action they might bring.

5. Know Your Leasing Criteria

Before you prepare a rental application, it’s a good idea to pin down the leasing criteria to help determine who will be qualified to become your tenant. Some common ones:
No prior evictions…Good credit…No foreclosures or bankruptcies…
No criminal convictions…No pets…No smoking…References…
But whatever your choices, do remember to follow the Fair Housing Act guidelines.

6. Assemble the Docs

There are basic lease agreements and other documents available online, or you can have an experienced lawyer prepare (or just review) them. Other rental home forms you might need include credit check authorization forms, move-in checklists, and any other notices you wish to post to tenants. They’re all available online.
Sound like too much work? If so, a property management company can handle some or all of it for you—I’ll be happy to provide you with good references. And if you’ve set your sights on purchasing a Metairie rental home as an investment, summer is near: that means now is a great time to start! 




Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com














Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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