Lesley and I had the pleasure of working with Ravi and Satya as they sought a new home in the Sarah Smith school district in Buckhead after relocating from Chicago earlier in the year.  We closed earlier today.  Ravi and Satya were referrals from past clients, Eric and Joyce, and we loved working with them. 

We were able to find Ravi and Satya a beautiful home in the Wieuca Trace neighborhood at a great price, and I think Lesley and I are just as excited as they are about the find.  Thank you again to Ravi and Satya for giving us an opportunity to help!  We are looking forward to the house warming party!

Boy, its easy to get discouraged watching the national news or reading a national paper covering this housing market.  However, we’re still proclaiming the bottom here at least for our home base of metro Atlanta. 

New construction has been hit hard.  Nationally we’ve seen homebuilders dropping like flies with decreased confidence in the market.  Housing starts for new construction single family homes are a good indicator for the housing market, and after reading a recent Atlanta Business Chronicle article, believe it or not I am encouranged.  While the national picture is a little less than desirable with national housing starts slumping again in October to the lowest level since 1959 when the United States Commerce Department started tracking the starts, the silver lining is that October housing construction starts in the South are actually up 1.5% over last month.  Don’t get me wrong, there’s still way too much new construction inventory and lot inventory has crested for quite some time, but it’s saying something that new construction is showing signs of life.  New government programs and falling lending rates will do nothing but help.

While we certainly have vast improvements to make in this market, buying into the national coverage will only frustrate and confuse.  I equate it to a weatherman telling you that it’s going to be sunny over the entire United States tomorrow.  You just can’t paint with a broad brush like that.  Make sure you stay opportunistic, think like a buyer, and stop denying this market as anything short of an unbelievable time to buy your first home, your second home, your first rental property, etc.

Lesley and I are fortunate to go on at least two listing appointments every week.  So, we must get a lot of listings, right?  Well, we certainly are successful securing listings, but we don’t want every listing.  You see, many desperate real estate agents take listings regardless of the situation because they know in their heart of hearts that even if the listing can’t and won’t be sold that they can use the listing to promote themself.  It’s a terrible reality, but it is just that, a reality.  When we all agree to agree to take a listing, Lesley and I take it because we genuinely believe we can sell it.  We aren’t desperate.  We aren’t in the business of listing homes.  We are in the business of selling homes.  If we can’t sell your home, it bothers us.  We don’t sleep well at night.  You aren’t happy.  You don’t use us again.  You don’t refer us to your friends and family.  We are sad, and eventually we become desperate.

So, what would cause us to not take a listing?

1 - Price - it’s hard to sell a home when it’s priced so high that it doesn’t attract buyers.  We are very realistic on price, and we play to the percentages, not to the possibilities.  This has helped us achieve an average days on market much lower (30.4 days) than the average Atlanta real estate agent.  We tell everyone that we meet with for a listing presentation that there will definitely be another agent that will come along and price their home higher than we would.  That will always be the case.  We completely understand when someone feels like they must “try” to sell their home at a higher price with another agent.  Unfortunately, the market stats suggest we have far more “tryers” as opposed to sellers considering 67% of listings fail due to being overpriced (ChartMaster 3rd Qtr Market Stats). 

2 - Condition - in this buyers’ market, you have to be competitively priced and you have to be the “prettiest.”  If a buyer sees a defect in your home, they don’t discount in hundreds of dollars.  They discount in thousands of dollars.  It’s hard to build value to a buyer when there are glaring defects that a seller is not willing to repair.  With high inventory, it is easy for a buyer to simply move on to the next listing without batting an eye.  It’s very unlikely that we will walk into the absolute perfect home that needs nothing done in order to get it ready for the market.  Part of our listing consultation includes a walk through of a home to make some clear cut recommendations on what exactly needs to be done in order to maximize your opportunity to sell in the least amount of time for the most amount of money.

3 - Financial - sometimes it is just not in the best interest of the seller to sell.  If someone is severely upside down on their home, we don’t want to take that listing unless the seller absolutely has to sell.  If they have to sell and it isn’t pretty, we coach people to explore short sell options with their lender to avoid foreclosure.  We tell more people not to sell than we do ask for their listing, and that’s the honest to goodness truth.  The rental market is booming right now as more and more people realize that renting their property gives them an opportunity to fulfill their obligation to their lender and hold on for a better day.  We want that better day for everyone if it’s in their best interest.

We know that selling a home can be a very stressful experience or a very enjoyable experience.  We are the difference maker.  We are not desperate.  We do not do desperate things.  We follow a time tested model that allows us to sleep at night.  We study real market statistics that give us important clues and direction when listing and buying property.  Continue to think like a buyer, and if you are looking for an agent that will give you the straight talk on selling in this market, look no further.

Lesley and I both are  proud members of the Atlanta Board of REALTORS®  I had the pleasure of attending a recent Atlanta Board event.  One of the topics was “What is a REALTOR®?”  Before I became a real estate agent, I just assumed that everyone was considered a REALTOR® if they were in the business.  I would also sometimes refer to these people as Real-a-tors.  It wasn’t until I became a REALTOR® that I really realized what this designation means to me and to the people who utilize my services.  I quickly learned that real-tor is the correct pronunciation, that it is spelled in all caps, always had that circled “R” symbol, and that actually being a REALTOR® was different than being just a real estate agent. 

All real estate brokerage houses don’t require the membership of its agents in a Board of REALTORS®.  Our Keller Williams offices require it with no questions asked.  Now, why would they be so insistant on its affiliates joining? 

1 - Code of Ethics - the REALTOR® Code of Ethics is at the forefront of the REALTOR® designation, and it provides an important difference to consumers.  All real estate agents are required to understand and operate under state mandated licensing laws, but only REALTORS® are held to a higher standard.

2 - Accountability - The Atlanta Board of REALTORS® mitigates disagreements and conflict between its members.  A violation of the code of ethics and a member finds themselves facing harsh consequences such as fines, suspension of Board membership, suspension of MLS access, etc.  This sort of accountability amongst the members creates a self policing that makes all of its members better.

3 - Community - the Board has a long-standing history of supporting the local community. In the past several years, the Atlanta Board of REALTORS® has sponsored building several Habitat for Humanity homes through the Atlanta Chapter.

4 - Awareness - membership in the Atlanta Board of REALTORS® places an agent in one of the most powerful and influential grassroots lobbying efforts in the country related to real estate issues affecting the industry.

5 - Networking and Exposure - by being a member, your listings appear on one of the heaviest searched site for homebuyers in the nation, www.realtor.com.  In addition, through various networking and educational opportunities members are able to promote their business and listings to their colleagues in a professional manner.

These are the top 5 benefits of being a REALTOR® as I see it, and why every agent should seek this designation.  It kind of makes you wonder about those who aren’t members, doesn’t it?  The more pressing question is always, “What’s in it for ME?”  I understand that everything I do and say should probably be followed with a “So what?” 

Here’s what’s in it for you and why you should use a REALTOR®:

Educated students of real estate law who understand the law and work to ensure you have the safest transaction possible.

Ethical leaders who understand and are willing to do the right thing even though it may mean more work on their part.

Community minded people who understand that a home is more than a place to live.

Politically active advocates for the real estate industry, helping to protect all of our investments.

Well connected professionals always searching to expose you to more than the average agent.

Lesley and I would love to show you the benefits of having a REALTOR® on your side first hand.  We want to be the difference maker in your real estate transaction.

The Peters Company’s latest listing is a beautiful, like new townhome in Norcross.  Many thanks to Emily for giving us an opportunity.  Emily found us online, as so many of our clients do.

 Best value in neighborhood • Move-in ready • Neutral paint colors throughout • Kitchen features stained cabinets, island, like new black appliances,  & pantry • Open floor plan with large family room/dining room combination • Gleaming hardwood floors on main level •  Sturdy, neutral berber carpet on 2nd floor • Expansive master with vaulted ceiling • Large 2nd bedroom perfect for roommate  floor plan  • Great exterior storage closet • Private patio •  Come home to this quiet community conveniently located to I-85, I-285, and Hwy 78 • Seller will pay 6 months HOA fees

Keller Williams produces and distributes very useful information.  The video included below is a nice review of the national market for the month of October including statistics and in depth analysis.  I encourage you to take a look if you are interested in the macro view of the real estate market.  Keep in mind that our goal is to ALWAYS keep you up to date with the micro view in the metro Atlanta area.  You will see local statistics scattered between here, our mailings, our email updates, our Facebook update group, and our Active Rain blog.

Perhaps one of the greatest statistics:  If interest rates go up 1% that represents a 10% increase in the purchase price.  Interest rates are incredibly low and fell again last week.  Don’t wait too long to take advantage of this prime opportunity to buy your first home, your first investment property, or move up.

The Peters Company is very fortunate to have outstanding relationships with some of the nation’s most reputable lenders, with no strings attached I might add.  One of the benefits of these type relationships is great updates on the market and relevant consumer information.  I must take this opportunity to say that we, The Peters Company, do not gain financially from recommending anyone from lenders to inspectors, vendors, etc.  We gain only piece of mind when we know that our clients are receiving exceptional service from lenders and vendors we know and trust.

Those of us who have bought a home before know that trying to decide on a mortgage lender can be a stressful process that can leave you wondering whether or not you are getting the best “deal” possible.  I find the need to negotiate everything.  It drives Lesley crazy, but it’s the truth.  I love to negotiate.  I always looked at the selection of my mortgage lender to be an opportunity for me to exercise my negotiation skills.  I love this article by our friends at Countrywide Home Loans because it really helps you understand what you should be looking for and what is just “smoke and mirrors” sales jargon.  Today I feel a little differently about selecting a mortgage lender.  I think first and foremost that it’s important to find a lender that you are comfortable with, someone who you like and trust.  Much like the real estate buying and selling process, the lending process has its fare share of ups and downs.  You want to make sure that the lender you select is there for you and someone that gives you honest, well founded guidance.

From Countrywide Home Loans, courtesy of Scott Meldrum, Robert Gilbreath and Kim Nehiley:

Many, probably most, consumers will talk with more than one mortgage lender when applying for a home loan.  They will want to get the “lowest” rate, or the “best” terms, or something along these lines.  If consumers are going to be shopping an industry that they are not familiar with, I believe it becomes our job to make sure that they are an “informed consumer”.  So let’s look briefly out how to correctly shop for a mortgage.

If It Seems Too Good To Be True, It Probably Is…

Yep, no big surprise there.  Most realtors and lenders have heard a client say, “Well, Mortgage Company X said they can do my loan at a 5% interest rate, no money down, and they’ll pay all my closing costs!”  Here’s the deal, while some mortgage companies may portfolio very specific types of loans for very specific types of borrowers, allowing them to offer better terms or rates, generally speaking, all lenders get their money from the same places.  Thus, all lenders, on most loans, should be closely aligned in terms of interest rate and programs offered.  So, if it seems too good to be true, you’d better start finding out where the hook is.

Make Accurate Comparisons…

Lender fees to Lender fees.  That’s it. Don’t compare one lender’s bottom line to another lender’s bottom line.  Lenders are responsible for quoting estimations on third-party fees, but they DO NOT control them.  And some might under-quote those fees to make their bottom line seem smaller.  Always and only, lender fees to lender fees.   And no matter what a lender says their APR is, get a Good Faith Estimate from them to verify fees.

Rates Change Daily, Sometimes Hourly…

Recognize that mortgages are instruments of investment, like stocks, and therefore change their accompanying interest rate on a daily, sometimes hourly, basis.  It is completely pointless to get a quote from Lender A on Tuesday and then get a quote from Lender B on Friday. This would not be an accurate comparison and you’ll just end up driving yourself crazy trying to figure it out!  If you’re going get quotes, figure out what lenders you want to talk to, sit down on the phone, and call them one after another, receiving not just an interest rate quote, but a full list of the terms that go with it (discount points, prepayment penalties, etc.).  For example, make sure that one comparison isn’t using higher fees to get a lower rate, or conversely, using a higher rate to quote lower fees.

This congrats goes out to Edric and Ging who just purchased their first home at Carlyle Woods.  Andy and I are big fans of Carlyle Woods and we currently have 3 clients living there!  Carlyle Woods is a condo/townhome conversion community located in Brookhaven.  It’s convenient location, amount of space, and outstanding upgrades make it a great VALUE, especially for many of our first time homebuyers.  There’s further gentrification in this area as word on the street is that the apartments across the street have been purchased and could potentially become a development similar to Carlyle Woods!  This area is within walking distance to Dresden’s new development, Briarwood Park, and a short drive to the future Sembler development. 

Congrats to Edric and Ging as they have made an excellent choice!  And, many thanks to Edric’s brother and sister-in-law, who are our past clients, for sending them our way!   

No matter your political views, the resolution of the election means good things for our economic condition.  The whole financial world, including the real estate market, can finally take a deep breathe and stop saying, “Let’s wait till after the election.”  That day has come, and I think everyone is looking for some stability.  I believe either candidate would have provided this stability, but the most important thing is action and quickly.  The President is no savior.  In fact, it’s the advisors that President elect Obama appoints that we should probably be taking a closer look at when he announces them. 

The election elated some and dissappointed others, but no one can discount the fact that there is energy after the election.  Perhaps that’s all we needed.  As mentioned here before, I feel like the Atlanta real estate market is already feeling the bottom and well positioned to recover.  I feel confident in proclaiming that it can only get better from here.  Gas prices have come back to earth.  Interest rates are caving.  In fact, now they are back under 6%.  Inventory is coming down, and prices are stabilizing.  If you can’t see the neon “Buy Now” sign, then you might want to schedule an appointment with your optometrist.

President elect Obama’s policies will build on plans already set in motion to improve our industry.  The bailout is helping to get more money moving in and out of the real estate market with increased liquidity amongst lending institutions.  The Fed has cut the rate helping make money less expensive to borrow.  This will help us attract more buyers in the form of lower borrowing and mortgage rates as the dust continues to settle, and the bailout will help generate increased competition in the market from lenders.  We still need further protection from mounting foreclosures in the real estate market, and I expect we’ll see more money moving in that direction in the form of loans and guarantees to the larger institutional lenders.  It’s not just the banks that need help though.  What about the homeowners left holding the bag forced to file for bankruptcy due to adjusting adjustable rate mortgages and risky creative financing during the boom years?  It would be real easy to say, “Sorry,” and continue the tsunami of foreclosures.  We will see more programs designed to help homeowners refinance on the cheap to avoid foreclosure and save their homes.  The new President has to address the lender and consumer side of the ball if he wants to fix this housing situation, and I think he will out of neccessity. 

 So, no matter your political views, we all need to take advantage of this new energy, and take advantage of our opportunities because it doesn’t take incredibly long for a valley to be a peak.  This economy will be back.  This housing market will be back.  As always, we will be here finding deals for buyers and securing the best for our sellers, no matter the market and no matter the President.

Simple Math:

Amazingly Low Rates + Depressed Home Values + Vast Inventory

= First Time Homebuyer Heaven

If you are a first time homebuyer sitting on the sidelines, your amazing opportunity window may be shortening as the home market is poised to rebound.  For months we have been proclaiming the dubious position that first time homebuyers are finding themselves in.  We have been fortunate to work with more than a handful of first time homebuyers this year, and I’m always blown away at what is out there waiting for them. 

Great Mortgage Interest Rates!  I heard my dad and my father-in-law for the last few years tell me about how high rates were “back in the day” of the 1970’s and 1980’s.  10-12% interest rates were not only common, they were pretty darn good.  We have really been spoiled here recently.  In fact, rates dipped below 6% again this morning, and they appear to be going lower according to our friends at Countrywide Home Loans.  If you are floating in the short term, waiting for interest rates to drop further, I encourage you to lock those rates.  With the volatility we are seeing in all the financial markets, anything could happen.  You may lose a little on your rate by locking, but you could also look like a hero on these sudden spikes we’ve seen in the last couple of weeks.  Adjustable rate mortgages may be tempting, but with rates this low and if you can afford to do so, lock your rate for 30 years and forget about it.  You’ll be glad you did.

Home Values are Down!   The Median YTD September 2008 sales price was down 10.3% versus the same period in 2007.  Foreclosures represented over 23% of the overall sales in the 3rd Quarter.  As mentioned before, you can’t always consider a foreclosure a good “deal”, but you sure have to look at them in this market.  It’s an equity cash grab if you find the right one.  Sellers received 93% of their list price in the 3rd Quarter, which is 3.5% worse than the same time last year.  The sellers are finally starting to accept the market, which is even further good news for the homebuyer. 

Inventory is Still High!  There is a 12.3 month home supply in the market right now, which is 20% higher than the same time last year.  However, it’s important to note that the home supply has dropped each of the last two months as this market attempts to correct itself.  A 6 month supply of homes is a good balanced market to give you a point of reference.

Other great benefits in this market for first time homebuyers include the fact that 75% of all home sales included seller paid closing costs!  FHA loans are available with 3% down, which can be in the form of a gift.  The other good news is that we are entering the winter months when home sales typically slow down, making an offer even more attractive for a seller. 

If you are considering buying a home for the first time or for the fiftieth time, there truly could be no better time than right now.  We have received high praise from our clients for our consultative approach, making the homebuying process a simple and enjoyable experience.   We would love to help you.

All statistics are cited from Chartmaster, 3rd Quarter 2008 Metro Atlanta Profile: Single Family Detached Residences.