Author Archives: Meril Missbach

What will happen to the unfinished lots in higher end communities?

Posted on January 25, 2011 | Leave a comment

By: Meril Missbach

What should be done with unfinished lots in higher end communities?  A few thoughts:

It is unfortunate that so many high-end single family communities broke ground during the real estate boom, only to be left with empty lots collecting dust during the decline of the economy.  As the market declined, the original builders were not able to sell the upscale houses above the price at which it cost them to build.  Therefore, the lenders have had to foreclose on the empty lots, leaving the communities partially unfinished.

In my opinion, the best thing that could happen to these unstable communities, is for a financially stable, reputable builder to purchase the foreclosed lots and build smaller homes that are in keeping with the architecture and curb appeal of the existing larger homes.  These smaller homes would be sold at much lower prices than the original, larger homes.  Rather than continuing to build large homes at dramatically reduced prices, the smaller homes would allow for a more affordable product that would be appealing to a larger audience. These new smaller homes would not be in direct competition with the larger luxury product that currently exists and, therefore, the value of the larger homes would not be brought down by the new construction.  The current homeowners would not be upside down in their mortgage.  Homeowners in these communities will be able to sell their homes based on the size and finish, regardless of the disparity of pricing within the community.

Five years from now, when the market is more stable and we are looking back at communities that were completed between 2009 and 2011, we will see many communities that have varying sized homes and significant price ranges.

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Posted in Foreclosure, Lots in High End Neighborhoods, Value of a home

The Verizon Droid X Smartphone: Is it a viable option for real estate agents?

Posted on September 13, 2010 | Leave a comment

By: Meril Missbach

The Verizon Droid X Smartphone: Is it a viable option for real estate agents?

Since Verizon is the only wireless carrier that works in my home, an iPhone has always been out of the question, regardless of how much I wanted one.  Therefore, when Verizon recently sent me a text offering a free early up-grade of my phone, I hopped on the opportunity to purchase the Droid X for only $199.  I’m a sucker for techno gadgets.  What follows below is a little review for any real estate agents who might be considering a Droid X.

The phone has a sleek design, but it is a little large and heavy for the pocket. The operating system is straight-forward, and that’s a good thing because not a lot of information is included in the shipping box.  It is very easy to set this phone up, but from there you are working in the dark unless you download the lengthy manual that is available on-line. 

The first thing I learned is that you can’t turn programs off on the Droid as you would on a Blackberry. I learned that the Droid X does not like long phone conversations (my first time out with the Droid X gave me a battery life of about 3.5 hours), and it seems to take forever to recharge the phone battery sufficiently from either the computer or the car charger.   If you plug it into the wall, it charges in a very reasonable time.

That said, I love this phone!  I especially love it since I learned to turn off all the GPS features when they aren’t necessary, turn off the Wi-Fi, and turn off all the other apps you don’t need running all the time.   It’s very easy to turn things back on as you need them, and learning to do this makes it possible for me to make it through the day with just one battery and no re-charging (well…minimal recharging!).  Here are a few things that make it a great work tool for an agent.

Below are a few Droid features that I think are beneficial for real estate professionals:

  • The Droid X phone is a good alternative to also bringing a camera to listings.  It has a huge memory capacity and does a great job with photos in both normal and low light situations. I found a free app that allows me to “photoshop” photos taken with the phone, so I can edit and enhance them right then.  It also has a video camera app, which I haven’t tried yet.
  • The “Droid light” app provides a flashlight (which is helpful if the electricity is off in a home).  Touch the lightbulb on the screen and you have a LED flashlight.  Touch the bulb again and you turn off the flashlight. 
  • Reception for calls and data is excellent, even in challenging mountain places. 
  • You will simply love the “swype” method of inputting text messages or emails.  It is incredibly easy to take photos and then share them either by email or MMS.
  • It also has a free navigation system, which so far has worked very, very well for me, so I cancelled my monthly subscription service.
  • I can write myself sticky notes as memory aids, and I’m sure there are many other organizational tools available. 
  • You can simply say the name of the person you want to call or text, and the phone has reasonably good word recognition ability. 
  • The Droid X also has a reader, so I can take my book along with me digitally.  
  • I’ve learned that I can find a hot-spot and use my Droid X to get internet access for my computer.  This is fabulous for those of us whose real office is in the back of our car.  After the stress of figuring out all this technology, the music feature on the Droid X is really good.  I learned how to synch up to my i-Tunes last night, so now I can play something soothing and just chill out.

The biggest drawback for a realtor using the Droid is that thus far, we can’t can use it to open our lockboxes.  Hopefully an app will come along soon that will allow us to open our lockboxes so we can eliminate another piece of equipment from the arsenal we carry.   

For those of you who have been wanting an iPhone product, but afraid to take the next step, I’ve taken it for you.  The Droid X is a fabulous productivity tool.  It’s like having a mini computer in your pocket.  This is a work-horse of a phone and a great tool for realtors.

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Posted in phone apps, Real estate advice in Atlanta

Whoa! Did Clark Howard really say that?

Posted on March 8, 2010 | Leave a comment

By: Meril Missbach

While driving in the ‘burbs a couple of weeks ago listening to the radio, I could swear I heard Clark Howard advise his listeners to NOT purchase a home until AFTER the current tax credit opportunity expires.  I almost wrecked my car!  Did he really say that?

He went on to say you might get an even lower price if you wait until after April 30 to purchase a home because then “there will be no buyers.”   I couldn’t believe my ears.  What are you thinking, Clark!  You’re usually “my man,” but I just don’t agree with you on this.

Here’s my take on the situation:

#1  People will still have babies and life-changing experiences, causing them to purchase homes even after the tax credit opportunity expires. So there will be buyers.

Yes, I anticipate the sales pace will be slower after the tax credit expires because there are a lot of smart people out there.  They aren’t going to leave money on the table by not taking advantage of that tax credit if they are eligible.  They are going to get their dream-home under contract by April 30 because it DOES NOT seem likely that the tax credit will be extended again.

So, ladies and gentlemen, start your engines.  Get out there and get shopping.  Prices are low, interest rates are low, and there is ample inventory from which to choose.  There’s a house out there for you.

#2  Yes, it is a buyer’s market, but this market is also like an estate sale. The best things will sell first.

So, if I heard you correctly, Clark, and you suggest home buyers wait until after April 30  to purchase a home,  then I hope your listeners are prepared to select from “picked over” goods.  If you’ve ever been to an estate sale on the last day when everything is 50% off, you know what I mean.  The good stuff is gone, and you’re picking from Aunt Ella’s gargoyles.  Sure, the price is cheaper, but is there anything there that you even want to buy?

You home buyers out there….. I encourage you to be financially savvy, but buy something you love, and think about these things:

  • Is this where you want to come home to at the end of the day?
  • Does being here make you happy?
  • Regardless of what you paid for it, when you are ready to move again, how easy
    will it be for you to sell this home in a more normalized market?

Your house is a big, big investment, but it’s also so much more.  It’s your happy place; it’s your refuge;  it’s who you are.

Well, Clark, if I heard you correctly the other day, I just don’t agree with you.  If I have misquoted you because I misunderstood something in the broadcast, then my apologies.  aIn fact, it would almost be a relief.  I just can’t believe you encouraged home buyers to leave the tax credit dollars on the table.  They paid it in, and now they have a short period of time in which they can get some of it back out.  I say go for it!

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Posted in Tax credit

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A move in the right direction: The new disclosure guidelines and how they may impact closing dates

Posted on August 6, 2009 | Leave a comment

By: Meril Missbach

In an effort to protect consumers, changes were recently made to improve mortgage disclosure, as part of Truth in Lending.  The official name of the new act is, “Mortgage Disclosure Improvement Act” (MDIA), and I think this is a move in the right direction to protect consumers from unscrupulous, predatory lenders.

Here are the main features of this new act:

  • It defines fees that can be collected by a lender before they provide an initial Truth in Lending disclosure.
  • It specifies when the lender must deliver Trust in Lending Disclosures to the borrower.
  • It sets waiting period that must occur before closing can take place.
  • It requires additional disclosures from the lender and additional time between the disclosure and the closing dates if the Annual Percentage Rate quoted by the lender changes by more than 0.125%.

Quite a few actions could cause an APR to change, including a change in the interest rate, loan amount, type of loan, fees charged or loan-to-value ratio. Under Truth in Lending, the lender must disclose up-front what changes have affected an ARP, so borrowers can realize how much money the lender is actually receiving for services related to the loan.

If the ARP does change, the new Trust in Lending disclosure requires a longer time period to pass before the closing of the loan, allowing consumers additional time to analyze any changes and, therefore, the time to make necessary decisions before closing. Below is a simple summary of the new timeline:

  • The Trust in Lending disclosure must be delivered to the borrower 3 business days after the application is received (business days include Saturdays, but not federal holidays).
  • The closing can occur 7 business days after the lender delivers the Trust in Lending disclosure to the borrower.
  • If there is a change of 0.125% or more in the APR, a new disclosure from the lender is required and the closing cannot occur for another 3 business days after the lender delivers the new disclosure.

If buyers must close by a certain date, it’s recommended that they lock in loan rates 5 days before closing to minimize the possibility of last-minute delays.

I see this as a move in the right direction.  These new rules probably won’t delay many transactions, but it will likely protect unsuspecting buyers from an unwelcome surprise when it’s time to close.

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Posted in Closing