To Rent or To Buy?

This is a question that a lot of people struggle with. There are a few things you need to take into consideration when making this decision.

• Current Interest Rates
• Which loan programs you qualify for
• Housing market in your area
• How long do you plan to live in the home

Current Interest Rates

Right now, rates are holding steady below 5%. This is a good indicator that buying may be a good decision. When rates are low, this means you can buy more for your money. Let's use a quick example: The average price of a house in Clarksville is $168000. On a VA loan with a rate of 8%, rolling the funding fee into the loan with no money down, that will give you a principal and interest payment of about $1260/month. With the same terms on a 5% rate, your P&I would be about $920/month. Once you add the taxes and insurance to the loan amount, your total payment on 5% would be less than the P&I on 8%. So, you can see the benefit of a lower rate. More house for less money.

Which Loan Program You Qualify For

There are countless loan programs out there. Each loan program has different rates, terms and down payment amounts. So if you haven't been saving for that big down payment and you can only qualify for a conventional loan, buying may not even be an option. Some loans you have to have reserves in the bank. The first step to making this decision is to contact a lender. They can look at your situation and help you find the loan program that is right for you. Always ask questions, if you don't understand something. When you look at a house payment, it's comprised of 4 things: Principal (the amount of money you borrowed), Interest (the amount you're paying the bank for lending the money), Taxes (annual real estate taxes on the property), Insurance (annual homeowner's insurance premium). This is also called PITI or total payment. Depending on the loan program and money down, you may also have to factor in mortgage insurance (the bank's insurance on your loan).

Housing Market in Your Area

Every housing market is different. Are you in a buyer's market or a seller's market? If you're not sure, ask your agent. Have a budget in mind. If you want to spend $800/month, look at what your money will rent for $800/month and then look at what your money will buy for the same amount. In this example of $800, be sure to tell the lender that's what you want your TOTAL payment to be. In a transient community like Clarksville, the price of rentals is often driven up because there is a higher demand for rentals. As of today, the average size of a rental for $800/month is just over 1100 square feet. If you look at houses on the market for $115000, the average size is just under 1500 square feet. So for the same amount of money, you could buy a bigger house than you could rent. This is not always the case, every market is different and changes fairly often. Do your part and be an informed buyer.

How Long Do You Plan to Live in the Home?

Look at trends in market. Are the houses steadily gaining value? Remaining stable? Losing value? If houses are losing value or remaining stable, renting is probably the better option. If houses are steadily increasing in value, buying may be the best option. Real estate is one of the best investments a person can make, as long as you're smart about it. You don't want to buy at the height of the market and you want to make a profit when you sell. If you're planning on staying around for at least a couple of years, you're probably better off building your own investment than paying one off for someone else. Also consider the type of loan you're qualifying for. If you choose to buy and find out you have to move away before it's profitable for you to sell, does your loan program allow you to rent out the property?

Now Put It All Together

Once you've considered all of the stats and information, put it all together and make the decision that's best for you. Only you know what's right for you, a salesman may persuade you to their desired outcome, but in the end, it's your decision. Make sure you're making a well-informed decision.

All real estate statistics are from Realtracs Solutions, Brentwood, TN. I am not a lender and all estimates are merely estimates using an online mortgage calculator and not exact figures.

Clarksville Night Life

No matter what you're into, you can probably find it in Clarksville any night of the week. I'm going to go through some of the main things people do for entertainment. If you feel that I've missed something, feel free to leave a comment and I'll look into finding you a place for what you're looking for.



Pool


For a real pool hall experience, you can go to the Classic Cue on Riverside Drive or The Pool Room on B St just off of 41A. There are also many bars that have pools tables for you enjoyment including, The Lodge-located by the mall, Rebounds-just south of Gate 1 on 41A, The Island-located on Madison St, The Tap Room-on Franklin St downtown above The Blackhorse, O'Connors-on Tylertown Rd by exit 1, The Pea Patch-corner of Franklin St and University, Tippers Night Club-on 41A. You can also go to Tippers Neighborhood Pub located at Tiny Town and Peachers Mill on Mondays for a Pool Tournament.

Trivia

If trivia is your thing and you don't want to sit in a smoky bar, visit the Front Page Deli on Franklin St. They host a live trivia game every Thursday beginning at 7 pm. You can also visit Old Chicago for Buzztime Trivia any night of the week. Tippers night club also has free NTN Trivia any night, be advised, this is a bar so you'll have to endure the smoky atmosphere.

Karaoke

So, you like to sing? Check out The Lodge on Wednesday Nights where your chops could win you $100. O'Connors also has karaoke on Wednesday Nights. Tuesdays and Thursdays you can visit Tippers Neighborhood Pub to show off your voice. Friday and Saturday you can visit Tippers Night Club to boast your vocals.

If you like to sing but have original stuff to showcase, visit the Front Page Deli on Tuesdays for Open Mic Night.

Poker

Who doesn't like a good game of poker? Visit The Lodge on Monday nights for a free Texas Hold 'Em tournament and the chance to win some serious prizes. The have 2 rounds per night with start time of 7pm and 10 pm. Tippers Night Club has poker tournaments on Mondays and Thursdays at 6:30 pm and 9 pm. Tippers Neighborhood Pub holds their poker tournaments on Mondays and Wednesdays at 6:30 and 9.

Need a Laugh?

Come out to Tippers on Tuesdays at 9pm for The Comedy Zone.

Looking for Some Live Music?

If you want to hear live music, you can visit any of the places above, excluding Tippers Night Club, on any Friday or Saturday night to enjoy live, mainly local, music.

Throwback to Your College Days

After all, Clarksville is home to Austin Peay State University. There are many bars downtown where you can enjoy the college atmosphere. Most notably, The Blackhorse Pub and Brewery which has fresh brewed beer and The Tap Room above it. You can go enjoy a nice dinner and check out the latest brew. Try the Vanilla Beer, doesn't sound like a flavor you'd want in a brew, but it's worth the taste. You can also check out the Pea Patch. They have beer pong, air hockey, pool and 2 bars, one indoors and one outside. O'Connors also has a huge backyard full of games, you can enjoy beer pong, flippy cup and cornhole, among other games.

Don't want to go to the bar?

Check out this link for other local things to do in Downtown Clarksville.

http://blondiessandwiches.com/Clarksville.html

Theaters

There are also two movie theaters in Clarksville to catch all the latest hits. The Great Escape is located at the intersection of Tiny Town and Trenton and offers 16 screens and a military discount. You can also visit the Carmike Cinema located in the mall near Sears. If you're looking for live entertainment, you can visit the Roxy Theater on Franklin St for plays.

Bowling

Clarksville has 3 bowling alleys to enjoy. The Pinnacle is located on Warfield Blvd (374), East Gate Bowling Center on Madison St and Skyline Lanes is located on Kraft St-just look for the big barn.

Stay tuned for some local restaurants you would probably drive past and not realize what you're missing.


This list is not intended to be an all inclusive list of things to do and I am in no way endorsing any of the places mentioned. Remember, if you visit these places and plan to have a drink, get a DD, don't drink and drive. Links to third party websites may be provided in my blog, if you use these links, you will be leaving my blog. I have not fully reviewed these sites and am in no way responsible or in control of the sites or their content. If you access any third party sites through my blog, you are doing so at your own risk.

July Homes Sales

If you currently have your home on the market or you're thinking about putting your home on the market, there is hope. July's numbers came out today and although they are down slightly from last month, houses are still moving, thanks to interests rates staying low.

July 2009 vs July 2010

In July 2010, there were a total of 1936 active listings in Montgomery County, slightly higher than the 1901 active listings in July 2009. Closed sales in July of this year were 215 homes compared to 381 last year. In case you're a numbers person, like me, this shows that your house better be in tip top shape if you expect to sell. Last July's absorption rate (percentage of listings that actually sold) was 20% versus only 11% in July of 2010. On a positive note, the houses that did sell last month spent less days on the market (average of 73) and on average sold for more money ($167709) than houses sold during the same time a year ago (84 average days on market and $160654). As far as how much sellers are getting compared to their asking price, we're holding pretty steady just over the 97% mark.

What Do You Need To Do?

If your home is on the market or you're thinking about putting it on the market, here are a few things that you should consider:

• Don't panic if you don't have people beating down the door to view your home
• DECLUTTER!!! When people look at your home, they need to see themselves in it, not you. So if the kids have a million toys they don't play with, box them up and get them out of there. If your kitchen has a toaster, coffee-maker, blender, spice rack, stand-up mixer and utensil holder on the counter, box them up. If you have so much stuff on your walls that you can't tell what color the wall is, box it up. You get the idea.
• Consider repainting your home to a neutral color
• Add curb appeal. When buyers are sent a list of homes, the first thing they see is the outside picture of your home, if it doesn't look good from that picture, they're going to skip to the next house. Whether it's freshening up your mulch, repainting shutters or adding plants, it's well worth the money.
• Make sure your agent takes lots of pictures of your home. It may seem crazy, but more than likely, the first contact a buyer is going to have with your home, is the internet. If there aren't any inside photos, they often times think there's something wrong with the inside.
• Keep your house clean! The cleanliness of a seller is often a sign of how well they've maintained the house. If you don't take the time to throw your dirty clothes in the hamper, you probably haven't taken the time to change the air filter either.
• Clean your baseboards, ceiling fans, bathroom vent fans and A/C intake, once again, this seems trivial but a little elbow grease goes a long way in impressing buyers.
• Make sure your home smells good. The fastest way to chase a buyer out of your house is a bad smell. If your home has a smell, you probably know it, so make an effort to resolve it. Some simple things that work are placing cinnamon sticks around the house, Oust or Febreze and air fresheners. You may also try placing dryer sheets, cups of baking soda or scented powder laundry detergent in closets. You may also consider having your carpets professionally cleaned.
  
• Listen to your agent, they're not your enemy. They have a vested interest in your home selling. Rather than taking offense to their advice, be glad you hired an agent who is willing to give you advice.
  

These are few simple, low-cost ways to get your home looked at and potentially sold. Just remember, your house needs to be in the top 11% of the market if you want it to sell. There are 3 reasons homes don't sell: location, condition and price. You may not be able to do anything about the location but you can control the price and condition.

All statistics provided are from Realtracs Solutions, Brentwood, TN

Clarksville Recreation

Whether you have just arrived in Clarksville or you've been here and want to jazz up your social life, here are a few things in the area to keep you busy. All of the following are family friendly events.


Check out the new Clarksville Greenway. If you're the outdoorsy type, this is perfect for you. There are currently 2 trails. They are pet and kid friendly, open to bicycles and rollerblading. Directions: Take 41A(Ft. Campbell Blvd) to 374 (101st Airborne Division Pkwy) turn right on Peacher's Mill, turn left on Pollard Rd. Follow Pollard all the way to the end and you will arrive at the Greenway. Here is a map of the trails:

There are many other walking routes in Clarksville, you can go down to Riverside Dr and walk along the river or check out downtown. There is also a playground for the kiddos.



For a complete list of all the parks that Clarksville's Parks and Recreation Department has to offer, click HERE.



Visit the Heritage Park Complex located at Peachers Mill and 101st Abn Div Pkwy. This facility has a little bit of everything. There are soccer fields, baseball diamonds, a playground, skate park, dog park, basketball courts, picnic tables and pavillions. The facility sits on over 100 acres!



Come to the Downtown Market, you can shop fresh fruits and vegetables, baked goods and arts and crafts, all grown or made locally. You can also find out about all the great things going on in the community. The market is open Saturdays during May-October from 8a-1p. If you would like to receive the downtown market's e-Newsletter, you can do so by visiting the city's website and registering, or just click HERE to be rerouted.



Movies in the Park is held at the Heritage Park Soccer Fields. Movies start at dusk with activities beginning an hour before the movie. There is no admission charge to get in and concessions are available for purchase. So grab you picnic basket and blanket and catch some free entertainment before the season is over.



Remaining 2010 Schedule:



Aug 7th- Forrest Gump

Aug 14th-Hairspray

Aug 28th-The Dark Knight



Jammin in the Alley is a great option if you like music. Come downtown to Strawberry Alley to catch some local bands. Music starts at 7pm on the 3rd Friday of every month May-October. Admission is free.



Remaining 2010 Schedule:



Aug 20th- The Sellouts

Sept 17th- Joel Brown

Oct 15th- Diana Pelham



Jazz on the Lawn is another great place to socialize and catch some music. Jazz on the Lawn is held at Beachhaven Winery near Exit 4, just follow the signs. You can bring in picnic baskets, and blankets but if you would like to have a drink, you have to try the wine. Music starts at 6:30 and goes until around 9:30 but it's all general admission seating so you may want to show up early.



Remaining 2010 Schedule



Aug 7th-Tina Brown

Aug 21st-Randy Moore & the Fabulous Suedes

Sept 4th- Joel Brown

Sept 18th McAlister's Crossroads

Oct 9th- Teacher's Pet

Oct 23rd- Richard Griffin



Stay tuned for more local spots to check out with or without the kiddos.

Questions About Your VA Benefits?

I can't count the number of times I've been working with someone who says, "Oh, yeah, I'm prequalified, got my letter from the VA right here." I work a lot with first time homebuyers and more specifically, military personnel. I live near a large army post, it's the reason our market stays strong. However, I find that many of these young soldiers are not properly educated on how to use their VA benefits to purchase a home. Here are a few key things to know when buying a house using a VA loan.

Just because the VA says you're eligible, doesn't mean you can get a VA Mortgage Loan

If you've never paid a bill on time in your life, you probably can't get a VA Mortgage Loan. Your loan still comes from a bank, so you have to have good credit. As of today the minimum credit score to get a loan is 620, through most lenders. If your credit was bad a while ago and you know you've been making strides, call a local lender and have them pull your credit. Also, be sure you're talking to a mortgage lender. Mortgage laws are constantly changing and if you're talking to someone who does consumer loans, i.e. cars, credit cards, personal loans, etc-they probably aren't up to date on the most current mortgage guidelines.

VA Funding Fee

The VA Funding fee is the way the government reduces the cost to taxpayers. You pay one lump sum up front rather than paying monthly mortgage insurance to a third party. Currently, the amount is 2.15% of the loan amount for your first VA home purchase. Most people choose to have this financed into the loan. Basically, this means instead of financing $100,000 for a home that's $100,000, you would be financing $102,150. The percentage of the VA funding fee goes up with each additional home purchased. So if you're using your VA benefits for the second time, be sure to ask how much the funding fee is.

Price Limits For Using a VA Loan

The biggest misconception comes from people who are using their VA benefits for the second time. Many agents don't even know this. If you have already purchased one home using your VA benefits and are planning to use a VA loan again to purchase your second home, the second home has to be at least $144,000. In most places, the maximum amount for a VA Loan is $417,000; however, this can be higher in certain areas. You can click here for a list of the higher limit counties.

Type of Home Eligible

What? Home eligibility? So not only do I have to be eligible, the house I'm buying does too? That's right, Chief. The Department of Veterans Affairs is there to look out for those who have looked out for us. What that means is, they don't want you buying just any ol' shack that's going to fall down as soon as you sign the paperwork. In order for a house to be VA Eligible, it has to meet a higher standard. The VA sets these guidelines and then a VA certified appraiser comes out to verify that the home meets them.

Now that you're a little bit more informed, happy home hunting. I am not a lender, VA representative or an expert on this subject. All information contained above, can be found in a much more to the point, aka boring, format by visiting VA.gov

Low Rates Keeping Clarksville Market Steady

Rates and Number of Homes Sold

With the recent deployments at Ft Campbell and the expiration of the Homebuyer's Tax Credit, everyone fears the market is slowing. With interest rates holding steady below 5% and today's rate an amazing 4.750% on a 30 year Conventional loan and 4.250% on a 30 year VA or FHA loan, houses are still moving. Currently, there are 1923 homes for sale in Montgomery county. To date this month, we have closed 64 houses and have 300 houses in pending status.

In the month of June, 296 homes closed in Montgomery county compared to 343 homes closed in June of 2009. Although the number is slightly lower than last year, it's no reason to panic. The average time on market for homes in June of this year is only 77 days versus 94 days on market in June 2009. So for all the doubters out there, our market is still strong.

Let's talk about price

The average sold price of a home in Montgomery County during June 2010 is $167832. The reports also show that the average seller got 98.3% of their asking price. That's great for sellers! Compare these finding to June 2009 and you'll see that our homes are still gaining in value. In June 2009, the average sold price was only $148063. Sellers were averaging 97.26% of their asking price.

All market data supports that Clarksville is a great market to be in. Whether you're an agent like me, an investor or someone relocating to the area.

Source: Realtracs Solutions, Brentwood, TN