Margaret Hickman, REALTOR®, GRI, ABR®, SRS

Here in beautiful Central Louisiana, we are seeing an influx of people looking for a lease purchase arrangement. Why? Here are a few reasons:

• Buyers are relocating from areas where the market is upside down. They've had to short sale their homes, so can't purchase for a minimum of two years. However, they are accustomed to being owners rather than renters.
• Divorce places one or both former partners in a financial situation in which they cannot presently buy. However, once financial recovery from the divorce occurs, they are ready. Again, these people are accustomed to being owners rather than renters.
• With loan restrictions and resulting higher credit score requirements in place, some potential buyers are not quite where they need to be--not too far away, just not quite there yet.
• Business reverses with the current economic conditions have left them in a position of recovery, but they don't want to throw the money away in rent.

What are the advantages to you, the seller, in agreeing to a lease purchase? It's not for everyone. However, if you need to move on to a new location, but your house has not sold, this could be a "bird in the hand" for you. In addition, those who are selling an inherited property or a property that is paid off would be in a good position for this option, particularly if the property has been on the market for a while.

How does it work?

1. To protect both parties, it is best to write and negotiate an Agreement to Purchase and Sell. Although an Act of Sale is farther into the future than the norm, it is still a legally binding contract.
2. A substantial non-refundable deposit should be required that will be held by the seller. In this way, there is no misunderstanding, with the broker required to distribute funds based upon the rules of the state real estate commission. At Act of Sale, however, this deposit will be applied to the purchase price.
3. A home inspection should be completed and all repairs negotiated prior to occupancy. Once occupancy occurs, no further repairs will be completed by the seller. As with any home owner, the buyer will be responsible for any and all repairs after occupancy.
4. An early occupancy agreement should accompany the Agreement to Purchase and Sell. It should spell out in detail the responsibilities of both parties. For example, the seller is responsible for maintaining taxes and insurance on the dwelling, while the buyer is responsible for insurance on the contents and day-to-day maintenance, including landscaping and mowing. Amount of monthly payment should be stipulated as well as how much of this amount will apply toward purchase price. If a mortgage is in effect for the seller, naturally only the amount of principal can apply less taxes and insurance. Monthly payments are typically sent directly to the seller.
5. As the time for Act of Sale approaches, the buyer will need to make good faith application for financing. If unable to obtain, an extension can be requested, but there is no guarantee that the seller will approve it. The deposit and monthly payments are forfeited by the buyer.
6. What happens if the market has further declined and the property does not appraise? This is typically a reason for withdrawal from contract if the seller refuses to lower the purchase price. However, the seller is holding the deposit, and it has been declared non-refundable. This detail should be discussed on the front end, and the REALTOR® should do a market analysis to determine if the house is currently listed AT market value rather than above.

There are some risks taken by both parties in such an arrangement, but if done correctly, it can be a win-win for all parties. And, yes, the REALTORs® who participate in negotiating such an arrangement are paid at Act of Sale.

While we all prefer a straight "put it on the market and get it sold" arrangement, the current economic situation in various parts of the country are making this difficult and in upside down markets, impossible. That's when it may be time for the seller and his/her REALTOR to think outside the box.

Visit my web site: http://margarethickman.clb.mlxchange.com

A unique internet-based business in Central Louisiana - Camo Formal

Update to this article written the end of 2010: Somehow country singer Brad Paisley's staff ran across the web site for this business in preparation for his music video entitled "Camoflage." They contacted the business owners, and guess what, some of their formals are featured in the video! The sellers were also invited (and went) to the premiere event marking the release of the video complete with backstage passes, and when Brad was being interviewed for the TODAY show, they also contacted the sellers to be present in New York. As luck would have it, Judy was in New York at the time and attended! Isn't that great!

Central Louisiana is home to a unique business that is actually marketed exclusively on the internet and brings orders from all over the United States. This business is a bridal and formal attire business, but is meant to appeal to the sportsman or anyone who likes camoflage. And, what better state to be home to this business than Louisiana, known as the sportsman's paradise?

This business began in the heart of a very talented seamstress, Judy Brimer, who at a very early age learned to sew. By the time she was married in her late teens, Judy made her own wedding dress, her fiance's suit, and all the bridesmaids' dresses. While she originally entered employment in another industry, sewing was calling to her.

Judy and husband, Sam, eventually opened a business operated out of a former residence in Tioga, LA, a small town due north of Alexandria/Pineville. There, those brides who preferred to rent rather their buy their wedding gowns found a business with pretty dresses easily altered to fit for their special day at a far less expense than buying a dress. Their business reputation was quickly established, as prom dresses and other formal dresses could be found for rental--thus the name of the business, which still exists today: Formals, Etc.

Eventually, when a local Alexandria bridal business, Aileen's (where I bought my own wedding dress), was put up for sale, Sam and Judy bought it. Not only did they rent bridal dresses, but now they also offered dresses ordered from major bridal suppliers. Eventually, as the business grew, they franchised it to other Louisiana cities and even a couple of neighboring states.

Through the years, Judy and Sam tired of the travel and problems associated with distant franchised stores and scaled back by selling or closing. Now, they have the local store, but let's get to the unique business aspect.

With Louisiana having an avid sportsman population, inevitably some wanted to celebrate vows weaving camoflage into the tapestry of their weddings or proms. Thus, Camo Formals came along. With a son-in-law who is good at web site design as well as photography to market Judy's design ideas, this business has taken off big time. Visit their web site, but leave the "s"off formal--camoformal.com. You will be surprised at the selection currently available from formals to wedding gowns, attire for the entire wedding party, shoes, decorations, etc. It's quite inclusive!

With orders coming in from all over the United States, a decision was made this year (2010) to rent a building for the manufacturing aspect of the business. Back to Tioga, they went. They bought a pattern-cutting machine, rented a large space that formerly housed a dress business, and they're in high production!

Knowing Judy, Sam, and their family personally, I'm so proud of their success. By the way, they have a Camo Formal Facebook page as well. A short bio is on their profile page. Send them a friend request.

Visit my Facebook business page: Margaret Hickman, REALTOR @ Keller Williams Realty - Cenla Partners.

Visit my web site: http://margarethickman.clb.mlxchange.com

OK, Mr. or Ms. Buyer! You either waited too long to house-hunt or you learned you had some credit issues to resolve before you could qualify for a loan. Is it too late to get a good buy on a house? Did you miss out on a great deal? The answer is ABSOLUTELY NOT!

Interest rates are still low. Some of the larger franchises (Coldwell Banker included) are launching creative ways to extend benefits for a longer time. In our market, we ended the first quarter with a little more than nine months of inventory on hand. That means it is still very much a buyer's market. Closing cost assistance can usually be negotiated with a good offer. In fact, during the tax credit, we often lamented that if we could find a way to get the tax credit to the closing table, it would be of more benefit. With the Coldwell Banker program, agents are trying to negotiate the closing costs or down payment assistance up to $8,000 (if allowed by the buyer's loan program) with the sellers at the time of listing. No negotiations are then necessary when writing the offer, and the money comes to the closing table. (Time constraints apply.) Even if this is not in place, however, negotiations on price and assistance with closing costs and pre-paids are still possible.

You WILL miss out on a good deal if you wait until interest rates rise--whenever that will be. Just as the markets rise or fall on a cyclical basis, interest rates will eventually rise. You will be kicking yourself then.

Do yourself a favor if you are thinking of buying. Call your REALTOR® today.

Are you moving to the Alexandria, Louisiana, area? Whether coming back home or moving through a job relocation, I will be happy to work with you to find a home in your price range. If you are targeting a particular neighborhood, I will provide a list of all available homes from all area companies. If you don't know where you want to live, I can list the particular subdivisions by price range and location for you.

I am a certified relocation specialist through several relocation companies. Ask to be referred to me. You'll be glad you did. Read my mission statement on my profile page. This is the level of service you need.

I work in an area with businesses and federal agencies who constantly move people in and out. People are relocated from all areas of the country, meaning that they come from different markets. Some come from markets where the median home price is much higher than ours, so they are delighted with what they find. Others come from markets where the median home price is lower, so it is difficult for some of them to find housing that is satisfactory to them within their price range.

Relocation buyers, please don't try to impose your market on ours. It just doesn't work. Listen to your agent, and follow his/her guidance.

Here is what you will get if you contact me* in advance--either through your company or independently:

• We will discuss your housing needs in terms of location, size of house, price range, etc.
• We will discuss the need for you to get your financing arranged in advance, and I can assist with finding a local lender if necessary.
• Once pre-approved, you will receive a private web page on my web site on which I will place properties matching your search criteria as they come on market. You may make notes as well as mark your favorites, possibilities, and rejections to assist us in narrowing your search for your house-hunting trip to the area. From my control panel, I can access your notes. You can also search independently, and save your results to your web page.
• You will receive E-mail notifications when a new property matching your search criteria comes on market.
• My web site contains links to newspaper, television stations, schools, and area attractions to help you become acclimated to the area before you arrive.
• Once you advise me of your house-hunting trip dates, I will arrange my schedule to be available for viewing homes as well as showing you some of the area.
• Once you find your new home, I will find comparable properties and provide statistics for low, average, median, and high prices for the area in which your home is located assisting us to arrive at a reasonable and defendable offer price. I will also show you the current tax records. It is important for you to objectively analyze these statistics and craft your offer within these parameters, rather than from what the same type of house would sell for in your current market or what you have decided it is worth.
• I will assist you with all paper work for the offer and any counter offer negotiations.
• Once we have an accepted contract, I will provide names of home inspectors. Those with whom I deal most frequently will make every effort to schedule the inspection while you are still in town, so that you can attend the summary.
• I will assist you in getting the contract to your lender and in adhering to the contract dates regarding final loan application, inspection, inspection responses, final loan approval, and closing date. I will prepare extensions to these dates as needed to keep the contract valid and to prevent you from going into default.
• I will work with your lender and you to select a closing agent.
• I will review the settlement statement with you for accuracy.
• I will do a final walk-through inspection of the property the day before or the day of closing to ensure that you are getting everything you expect BEFORE you sign the final documents, while there is still time to correct repair deficiencies or missing fixtures.
• I will attend closing with you.

*Most relocation specialists and trained buyer's agents follow the above steps or an acceptable derivative thereof.

Listen to your agent's advice, follow these steps, and you will have a successful and satisfying relocation experience. Don't listen, and you just might wind up relocating with no place to live. Don't blame the agent! YOU DID IT! You didn't listen to your agent.