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Many of us have taken a vacation and found the North Georgia Mountains the perfect place to retire, buy a 2nd home, or rent a cabin for the weekend. Many people, me included, have actually bought property spontaneously while on vacation — and while that’s not always a horrible idea, a little planning and research prior to your visit will greatly aid you in making a wise buying decision.

Now is probably the best time in many years to find a relative bargain on a mountain property. Prices on cabins, lots and land have come down from their highs of 2005. Finding the best deal involves research, patience, and a good real estate agent. The mortgage market is tightening and buyers must have a solid knowledge of their finances, credit rating and ability to obtain a loan. Getting prequalified by your lender is more important than ever and will help you negotiate the best deal with the seller.

Any real estate purchase involves a market analysis and now it is more important than ever. Many buyers are looking for foreclosures thinking them to be the best deals available. While banks may be willing to take a loss on a foreclosed property it may still be overvalued compared to other properties. Owners who have owned their homes or land for years usually have a lower cost basis and may be more willing to sell at a lower price.

It is important to think about what a second home purchase will do to your overall financial picture. Investing in real estate has been an important strategy for building wealth for many people over the years. Yet it may not be for everyone. You should determine the impact on your long-term financial goals.

Many lenders now require buyers to put down at least 20 percent on a second home or you will have to pay for private mortgage insurance (PMI). Your primary home lender may not want to tackle a vacation home mortgage, often our local banks may be a better option. You may be able to tap into the equity of your existing home for some or all of your down payment.

Renting out your cabin is a good way to cover some of the cost, but lenders often charge a higher interest rate and will look at projected vacancy rates to determine if you qualify for the loan. Insurance costs for a short term vacation rental will be higher than a normal home owner’s policy. Plus, you have to pay the rental management company a management fee sometimes as high as 35%.

On most vacation homes you can write off your interest payments but not much else. Should you decide to put your vacation home in the rental program you may gain more favorable tax write offs. Seek professional tax advice to determine if renting your vacation home makes sense for you. But don’t buy a vacation home for tax reasons alone. If your dream mountain cabin fits into your financial plan and life style and you’ve done your research, it may be the best time in years to buy.

Pat Trainor

www.buyblueridgerealestate.com

www.toccoariverrealestate.com

www.rentgeorgiacabins.com

Arts in the Park will be held Memorial Day weekend, May  24th and 25th from 10:00AM until 6:00 PM. There will be approximately 170 vendor booths that will have all kinds of arts and crafts being displayed by local artists. There will be plenty of food vendors so plan on having lunch while you are there.

You will be able to find everything you need to accessorize your cabin including rustic hand made furniture, chainsaw carvings, photographs, wildlife oil paintings, pottery, jewelry to name a few.  The diversity of crafts on display is amazing and worth seeing even if you don’t own a cabin.

This is one of the busiest weekends in North Georgia, as people from all over, come to Blue Ridge for Arts in the Park. There may be as many as 15,000 to 20,000 people visit the festival over Memorial Day Weekend.

Don’t forget to make reservations as soon as possible. Every rental cabin and most of the hotel rooms, in North Georgia, will be booked Memorial Day weekend. Check out http://www.rentgeorgiacabins.com/ for rental cabin availability.

One of my favorite things about Arts in the Park is to see old customers and friends. It seems that I see everyone I have ever sold a cabin to. This really is a great weekend to come to North Georgia.

Well it is a big weekend in Blue Ridge as the 11^th annual Blue Ridge Mountain Adventure Race takes Place. Some of the best Adventure racers in the country are in Blue Ridge this weekend for this grueling 35 to 40 mile race. Downtown Blue Ridge will be hopping with activity this afternoon.Each 4 man team consists of 3 racers and one support person. Each 3-man team of racers must be co-ed in order to be eligible for trophies, however all male or all female teams are allowed to participate. The majority of the race takes place south of Blue Ridge out the Aska Rd. corridor in the Chattahoochee National forest. This year the race will start at the Toccoa Valley Campground and will take racers 6 to 10 hours to complete the course.

The course of the Blue Ridge Mountain Adventure Race changes from year to year. However  some combination mountain biking, running/trekking, kayaking, canoeing, rappelling, orienteering, wet river crossings and climbing, as well as numerous “mystery challenges will be used.

One of the biggest draws to the Blue Ridge area is the variety of nature trail system of the Chattahoochee National Forest. Race planners will use portions of the Benton MacKaye Trail, the Rich Mountain Wildlife Management Area and Aska Adventure Area and the racers never know exactly what to expect on race day. Water events usually include portions the Toccoa River and Lake Blue Ridge.

Racers have to navigate their way through the course and make decisions along the way. It is not just about speed, endurance and stamina it is about making the correct choices. Even for the best racers it is not uncommon to get lost somewhere along the way.

The racers will finish in downtown Blue Ridge at the park where there will be food vendors and live reggae music by Natti Love Joys. Racers should begin finishing some time between noon and 5 PM so stop by the Blue Ridge Park and join the fun.

Many of our home buyer’s have been vacationing here in the Blue Ridge Mountains for years. Rather than staying in a hotel they often find a good cabin rental company and rent a beautiful log cabin for their visit. The cost is very affordable usually running from $135 to $250 per night and most cabins will accommodate between 4 and 12 guest. For 2 or 3 couples or a family with children the cost is far less than staying in a hotel and there are a great number of advantages.The cabins offer full kitchens and BBQ’s so you don’t have to eat every meal out. They offer areas for the family and friends to spend quality time together, many having game rooms, video games, outdoor fire pits, screened porches where you can watch the wildlife. It really is a lifestyle that no hotel can compete with regardless of the price. After a visit or two many renters fall in love with the mountain life style and begin their search for a cabin of their own.

My wife an I were the classic buyer, after staying in a cozy log cabin on Fightingtown Creek we said to ourselves why are we going back to Florida. After the first week of our vacation we began looking for a cabin on a trout stream. I like woodworking so our big priorities were a large workshop, a trout stream and some beautiful acreage. Five months after our first visit we realized our dream and found the perfect place, well everything but the house, the trout stream was gorgeous filled with rainbow trout. The shop was the right size but needed finishing 3 acres of gentle land with an apple orchard and a great spot for our garden. It only took me 4 years to fix the house but we finally have everything we hoped for and have not regretted the move for a moment.

I highly recommend renting a cabin before you make a buying decision and they provide an enjoyable base of operation during the search. There are things unique to owning in a vacation cabin as opposed to your full time home and staying in a cabin or two will help you make an informed buying decision. Visit http://www.rentgeorgiacabins.com/ where you will find some of the most beautifully appointed cabins in North Georgia. The dream of owning a mountain cabin can be yours, I will be happy to help guide you through the process.

Finally some good news for housing, according to news reports last week sales of existing homes posted a slight increase for the first time in 6 months. Last months gains were driven by more aggressive price cutting by sellers in many parts of the country.  In the South, existing-home sales increased 2.1 percent to an annual rate of 1.99 million in February but are 22.0 percent below February 2007. The median price in the South was $163,400, down 8.6 percent from a year ago.

The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. Many economists were predicting a small decline and were caught by surprise with the largest increase in the past 12 months. The NAR reported that the median sales price of single family homes fell 8.7%to $213,500 from February 2007.

I do not want to read too much into the one-month rise in sales. The slump in Blue Ridge housing market will likely continue until the high levels of unsold inventories are reduced. Coldwell Banker High Country Realty experienced an increase in activity with 37 sides going to contract for the month of February. Other companies are reporting their traffic is up and they are writing contracts as well.The good news for the North Georgia market is that inventory levels have begun to stabilize around 15,000 listings. The spring and summer buying seasons will be the real test of whether the housing market in North Georgia is in fact bottoming out.

The turn around will not be as quick as equity investors experience in the stock market. It will take time to bleed off the excess inventory; however, we have seen a huge drop off in new construction and land development so the supply of new listings will be primarily resales. Sales have been greater than housing starts on a regular basis since early 2007.
I believe that the worst is behind us and that this may be the best time to buy in many years. Lower interest rates have made mortgages more attractive. The national average for a 30-year conventional fixed mortgage was 5.92% in February, vs. 6.29% a year earlier. There are a host of initiatives being proposed to bolster the sagging market and bail out homeowners facing foreclosure.

 In real estate, it is often essential to try and anticipate the problems that may arise. An experienced agent can help minimize problems by solving them before they become a serious issue. In the mountains, the problems can sometimes be anticipated. For example the problem of pro-rating the cost of propane gas remaining in the tank at time of closing.The new 2008 Georgia Association of Realtor’s contract, in section 5(C) PRORATED AMOUNTS: states that the parties agree to prorate (2) all utility bills as of the date of closing. The question arises-is propane gas a utility and therefore subject to the terms of this section of the contract?

It is unfortunate when the first time this issue arises is the day of closing. But this happens more often than you would imagine. Therefore the closing is halted as all parties negotiate their interpretation of Section 5 (C). The Seller, of course, says that the propane gas is a utility under this section of the contract, and must be prorated. The buyer says, no-it is not a utility under this section and the cost of the propane gas was included in the sales price for the house and no proration is necessary.

Propane tanks are usually leased from the gas company the gas within the tank is bought and paid for by the Seller. So the question arises is the tank a fixture, probably not if it is leased, if the user fails to pay the lease then the gas company will remove the tank. If the seller bought the tank then it would likely be considered a fixture and stay with the house when sold. The gas within the tank is still a question and should be addressed in the purchase and sale agreement to avoid any misunderstandings at closing. Parties are more flexible and negotiable prior to signing the contract than afterward.

Pat Trainor

http://www.buyblueridgerealestate.com/

When purchasing a mountain cabin or property, you will need to learn a lot about the area where you want to buy. Buying mountain property will likely be significantly different than anything you have purchased before. There are so many things to take into consideration such as septic systems, flood zones, community water systems, maintenance of private roads, maintenance of the cabins exterior to name a few. My experience has been that if a buyer is not able to make an informed decision they will make no decision and delay their dream of owning a mountain cabin.

The best way to become an informed Buyer is to find an experienced real estate agent who is knowledgeable in all aspects of mountain property.  An experienced agent can be helpful in more than just locating active listings for sale. They should be able to answer a wide range of questions providing you the information you need to make an informed decision. Once you have found the perfect cabin an experienced agent will give you an edge when negotiating with the seller and handle all the details between contract and closing.

If you are interviewing agents to represent you, ask him / her two questions:

             How long have you been licensed as an agent?

             How many transactions did you sell last year?

If you don’t work with an experienced agent, you could lose out on benefiting from the expertise that person brings to the table. So make sure you pick one that fits your needs-plus find one you enjoying spending time with.