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What is the outlook for Atlanta Real Estate?

June 3rd, 2008 9:48 AM

Slow-motion sales in many housing markets have folks struggling for survival. Add the subprime crisis and talk of a recession, and you can expect another rough year for residential real estate.
By Lori Johnston, Bankrate.com

How bad is it? "There's not a market that's immune at this point," says Chris Porter, manager with John Burns Real Estate Consulting.

Atlanta

Hotlanta was less steamy when it came to housing starts last year, with permit activity falling to mid-1990s levels and expected to continue to decline in 2008, says Chris Porter of John Burns Real Estate Consulting. Meanwhile, an increase in foreclosures made it No. 11 in the country, according to RealtyTrac. Atlanta didn't experience the sharp price increase in the resale market that other Southern cities faced, so only modest decreases are expected in the median price over the next three years, Porter says. But he adds that an expected slowdown in the solid job growth the city has experienced over the past several years will create less demand for housing.

Median price end of 2007: $164,300

Median price end of 2006: $166,800

Percent change: - 1.5 %

Projected change through Q3 2008: - 0.1 %

Affordability rating: 2.6

Foreclosures in 2007: (1 for every 40 households) 50,271

Foreclosures in 2006: (1 for every 60 households) 33,018

Change in foreclosures: + 52.3%

Panel of experts
• Ken Fears, National Association of Realtors.

• Bernard Markstein, senior economist and director of forecasting, National Association of Home Builders.

• David Stiff, chief economist, Fiserv Lending Solutions.

• Chris Porter, manager, John Burns Real Estate Consulting.

• Ingo Winzer, president, Local Market Monitor.

Posted by Alan Andrew on June 3rd, 2008 9:48 AMPost a Comment (0)

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Atlanta - Clearer Skies on the Horizon

May 20th, 2008 12:34 PM

Housing market: With its robust growth rate, Atlanta is set to bounce back sooner, stronger than many areas.

The reports of the demise of Atlanta's housing market have been greatly exaggerated.

The much publicized housing bubble was never more than a small bump here in Atlanta. In parts of Florida, California and Nevada, housing prices doubled and tripled between 2001 and 2006. During the same period, home prices in Atlanta increased a slightly higher than normal 4 percent to 5 percent per year. Price increases in other parts of the country were unsustainable, and what went up eventually came down. Not surprisingly, where prices went up the most, they also came down the most. For all the bad press about housing, home prices in the Atlanta region fell less than 5 percent over the last year.

While fear and uncertainty have caused the number of overall home sales to fall sharply in Atlanta and around the country, home prices here have not fallen anywhere near as much. This is because while housing is a commodity, it is also a place where people live. The majority of home moves are discretionary. If the market is unfavorable, discretionary buyers and sellers sit on the sidelines. This can cause a decline in the number of homes sold without having much of an effect on prices.

Home prices in the Atlanta region are somewhat immune to a large price drop because we benefit from a wonderful safety net. Our metro region adds about 150,000 people per year. Between 2000 and 2006, our region added 856,266 people, a growth rate that was the highest in the nation. Almost 2 million additional people are expected to move here over the next 12 years. With so many new families moving to Atlanta, the demand for housing will remain strong.

While there are more than 100,000 homes on the market today, it will not take long to absorb them based on our current rate of growth. This is particularly the case since homebuilders started cutting back on new construction three years ago and permits for new homes have now fallen dramatically.

Home buyers are confused about getting a mortgage and the large number of homeowners at risk of being foreclosed. Despite all the hoopla about a credit crunch, it is surprisingly easy to get a mortgage if you have decent credit. While the same cannot be said for buyers with bad credit, this represents less than 10 percent of the market.

The degree to which foreclosures will stress our local market will depend on what actions our federal government takes to solve the problem. However, foreclosures are highly concentrated in certain neighborhoods rather than being evenly distributed throughout the metro region. As a result, housing markets in desirable neighborhoods with low foreclosure rates are already showing signs of strengthening.

Less desirable neighborhoods hard hit by foreclosures may limp along for years in a recurring tale of rich neighborhoods getting richer and poor ones getting poorer.

Smart housing decisions tend to boil down to a focus on location. While there are many factors that make a neighborhood desirable, the more important ones include quality homes, good schools, low tax rates, low crime rates and good access to work centers and shopping. Driven by traffic congestion, an aging population and changes in consumer preferences, what is considered a good location is also changing. There is a reason that all those condominiums and mixed-use developments are being built —- they are filling a demand from aging baby boomers and young professionals. While developers may have gotten a bit ahead of themselves in this area, the smart money is on the demand for this type of housing to grow exponentially over the next decade.

Housing prices in Atlanta, not having fallen much, should not have far to go to predictably rebound. In a few years, due to the health of our local economy, housing prices should be higher than at the peak of the previous cycle.

Sellers whose homes are worth less than they were a year ago and who psychologically feel poor should not have to wait too long to feel better about their circumstances. Of course, rather than waiting to sell until prices recover, savvy sellers have figured out that if they can get an equally good deal in purchasing another home, they are still ahead of the game.

A $200,000 home in Atlanta in 2001 was likely worth $260,000 in 2006. With a 5 percent drop in housing prices, that house today would be worth $247,000. While a $47,000 increase may not seem like much, as a rate of return on the typical buyer's cash investment, it is very healthy. Housing is and will continue to be a tremendous builder of wealth for buyers who can ride out the periodic cycles in the market.

A strong buyer's market and low interest rates are allowing buyers to get great deals on housing. As the spring market gains momentum, the best deals are being snapped up. The advice of "buy low, sell high" has never been more apt. Buyers should act accordingly.

By Seth Weissman, Dan Forsman
For the Journal-Constitution
Published on: 04/14/08

Posted by Alan Andrew on May 20th, 2008 12:34 PMPost a Comment (0)

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There's more to purchase offer than price

May 7th, 2008 1:41 PM

Don't sign final contract without considering closing, delivery dates
May 07, 2008 10:39 AM

There is more to a home purchase offer than the price. Ideally, the offer, including any counteroffers, should encompass all the terms and conditions that will apply to the purchase transaction.

In some states, attorneys draft purchase offers. In other states, like California, most residential purchase offers are filled out by real estate agents using pre-printed contracts that were drafted by attorneys. In either case, make sure to read the offer and understand it before it's presented to the sellers.

HOUSE HUNTING TIP: A surprising number of buyers don't read the fine print. Instead, they rely on their attorney or real estate agent to make sure the offer reflects their wishes. Don't make this mistake. If possible, ask to see a draft of the offer beforehand so that you have sufficient time to read and digest it.

The purchase offer typically includes contingencies to protect buyers. Common contingencies are for financing, appraisal, inspections and the sale of another property. Contingencies are conditions that must be satisfied for the transaction to move forward.

Contingencies can be written in various ways. For example, an inspection contingency might give the buyer the unilateral right to withdraw from the contract without penalty. Or, it could specify that the buyers give the sellers the opportunity to remedy defects. In the latter case, the buyers' deposit could be at risk if they backed out of the contract without giving the sellers the chance to make repairs.

During the fast-paced seller's market of a few years ago, buyers often made offers without contingencies in order to be competitive. In some cases, lawsuits developed after closing when the buyers discovered defects they were previously unaware of.

While it's preferable to include contingencies, there are times when it may be reasonable to waive a contingency as long as you are aware of the consequences before doing so. For example, recently buyers made an offer in competition on a desirable house in the Oakland Hills of Northern California. They did not include a contingency for the house to appraise for the purchase price.

The appraiser was unable to appraise the house for the agreed-upon price because of a lack of sales in the neighborhood in recent months. Without an appraisal contingency, the buyers could have lost their deposit to the sellers if they backed out because the house appraised a little low.

However, the buyers were aware of the fact that the house might not appraise for the price they agreed to pay. They were willing to increase their down payment to make up the difference. And, the sale went through.

In addition to the price and contingencies, the purchase offer should include such specifics as the deposit amount, the closing date, the date the sellers will deliver possession, any personal property such as a washer or dryer that is included, and any real property such as a light fixture that is excluded from the sale. It is best to be as specific as possible.

The time to tie up any loose ends is before the final contract is signed. Leaving issues to be worked out later can work to your disadvantage. You could find that a previously congenial seller turns cranky if he's asked to pay for defects discovered during your inspections.

For example, let's say that you want to close the transaction and receive possession of your new home on a Friday so that you can move in over the weekend. You are better off specifying a date for closing than you are indicating a closing of a certain number of days from acceptance. If the negotiations take several days, your 30-day closing date could end up falling on a Monday.

THE CLOSING: An uncooperative seller might hold you to this.

By Dian Hymer
Inman News Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Posted by Alan Andrew on May 7th, 2008 1:41 PMPost a Comment (0)

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Just Listed! 725 Amster Green Sandy Springs, GA 30350

April 12th, 2008 12:32 PM

$554,900.00
725 Amster Green

Sandy Springs, GA 30350

Beds: 5.0	Rooms: 5
Baths: 4.00	Sq. Ft.: 0
Garage: 2.0	Built: 1982

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.

If you have any questions
about this property or
require more information,
please feel free to call.

Alan Andrew
Andrew Realty Group
404-250-0409
www.andrewrealtygroup.com

Visit this listing at Here

Posted by Alan Andrew on April 12th, 2008 12:32 PMPost a Comment (0)

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Learn how buyers, sellers are closing deals in today's market

April 8th, 2008 2:00 PM

Negotiation is back in style, and is likely to remain a necessary part of buying or selling a home in today's beleaguered residential housing market. Other key elements to a satisfactory closing are flexibility, perseverance, creativity and diligence.

Needless to say, you need to work with the best real estate professionals you can find in your area. In most cases, it takes a team effort to put a home-sale transaction together and see it through to fruition.

HOUSE HUNTING TIP: Successful negotiations usually require give and take by both parties. It has been said that the sign of a successful negotiation is one where both parties walk away feeling they have won. It has also been said that the key to a mutually acceptable agreement is that both sides feel a little wounded.

A must in this market is a commitment to exhaust all possible ways to put and keep a deal together before calling it quits. Recently, it looked like a purchase contract was about to fall apart. The buyers had originally offered a price that seemed insultingly low to the seller.

The seller set his personal feelings about the price aside and countered the buyers' offer at a price he felt was reasonable. The buyers accepted. As it turned out, the price was one that was halfway between the seller's list price and the price the buyers offered. Splitting the difference is often a winning strategy.

The house in question had been well inspected before the buyers entered into contract to buy it. However, when it came time for the buyers to remove their inspection contingency, they requested a large monetary credit from the seller. Not only did the buyers discover a few health and safety issues that weren't covered in the previous reports, they also developed a serious case of cold feet.

These buyers were able to find jumbo financing at a good interest rate. However, to obtain this financing, they had to make a larger cash down payment than anticipated. This left them feeling cash-strapped.

The seller refused to credit the buyers the amount of money they requested. However, he was willing to credit some money. Or, he would carry a second mortgage for the buyers so that they didn't have to put so much cash down.

Flexibility gives the parties to a negotiation a way to explore options for making a deal or for keeping one moving forward. In order for the buyers in this case to feel comfortable closing the sale, they needed a concession from the seller in order to ease their financial strain. By offering to carry a second mortgage against the property, the seller found a way to free up more cash for the buyer.

As it turned out, the buyers elected not to take the seller-financing offer and accepted a monetary credit at closing.

Credits at closing require approval by the buyers' lender. Most lenders have limits on how much money a seller can credit a buyer at closing. It is often equal to 3 percent of the purchase price, but cannot exceed the actual amount of the buyers' nonrecurring closing costs. These are costs paid for the buyers on a one-time-only basis at closing, such as title insurance or a transfer tax.

A seller carry-back would also need lender approval. The lender in first position would want to ensure that the terms of the second mortgage were reasonable and would not be likely to put the buyers in financial jeopardy.

THE CLOSING: Sellers should carefully consider whether it makes good financial sense to carry financing for a buyer who is making a relatively small cash down payment.

By Dian Hymer
Inman News

Dian Hymer is author of "House Hunting, The Take-Along Workbook for Home Buyers" and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books.

Posted by Alan Andrew on April 8th, 2008 2:00 PMPost a Comment (0)

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How to Play the Real Estate Bounce-Back

October 23rd, 2007 8:52 AM

New Rules of Real Estate 2007

How to play the real estate bounce-back

The housing market may be melting down, but Business 2.0 worked with Moody's Economy.com to identify 10 cities that have just about hit rock bottom - and offer opportunities for savvy investors to get in while the getting's good.

By Paul Kaihla, Business 2.0 Magazine senior writer

September 26, 2007

click here for full article from CNN.com

Atlanta

Projected median sales prices for single-family homes:

Q1 2008: $177,750

Q4 2009: $187,640

Growth: 5.6 percent

Half a million dollars probably won't buy you a home in one of Atlanta's Martha Stewart-style neighborhoods. And that's a good thing, argues Dan Forsman, CEO of Prudential Atlanta. Forsman says the smart money here will move upmarket, in exactly the opposite direction of where it will go in New Orleans. A contrarian by nature, he sees the biggest arbitrage in properties priced at $750,000 in high-end communities northeast of the city - suburbs like Druid Hills, Duluth, Johns Creek, and Suwanee. The construction cost of a home in those pockets is $260 a square foot; right now, you can pick one off for $180.

Boding well for the local economy, "Hotlanta" boasts one of the highest rates of job growth in so-called creative-class occupations in the country. Why? It's the top destination in America for young professionals, a transportation hub (Atlanta's airport is the busiest in the world), and a place where most Fortune 500 companies maintain a regional presence. Projections by researchers at the U.S. Census Bureau and Virginia Tech place Atlanta at the center of a "megapolitan" cluster of urban sprawl that will develop over the next quarter-century, encompassing 7 million people.

This points to another niche real estate play: As buildable land around the city disappears, downtown neighborhoods on the brink of transformation are ripe for investment.

Posted by Alan Andrew on October 23rd, 2007 8:52 AMPost a Comment (0)

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Picking the right moving company

April 9th, 2007 10:36 AM

Checklist: Picking the right moving company

Decided to hire professionals to move you? Recommendations from friends, relatives and neighbors are a good way to find the right moving company. Here are a few items to keep in mind when you interview prospective movers:

Only deal with licensed companies. Ask the representative to demonstrate that it carries worker’s compensation insurance to protect the company and its customers.

Ask about the firm’s experience and client list. Call a few clients to verify references.

Ask the movers if they are members of any local or national moving trade associations. If so, contact the associations for further information.

Check the companies out with the Better Business Bureau and the American Moving and Storage Association to see if they have information on them.

Get a written estimate, and determine whether it’s binding or non-binding. The most accurate way to estimate your moving costs is to get an in-home, visual assessment from the mover. Decide whether you want full service (they pack, unpack and move everything) or self-service (you pack and unpack everything and they move it).

When you’re ready to sign the contract, insist on a guaranteed price in writing that includes guaranteed pick-up and delivery dates. The contract should include a guarantee of how many hours the job will take, allowing an overrun of no more than 10 percent.

Published on January 16, 2007 by realestate.com

Posted by Alan Andrew on April 9th, 2007 10:36 AMPost a Comment (0)

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101 Reasons to Consider a Real Estate Agent

April 5th, 2007 3:09 PM

from Yahoo.com

Appreciating the Numerous Steps an Agent Takes for Homeowners

With more real estate resources available on the Internet, it may seem as if buying and selling a home is an easy task. These 101 reasons will show you the extent of knowledge and experience that an agent provides to help you through a real estate transaction. This list reflects actions, procedures and processes that a real estate agent may typically perform during a residential real estate transaction - and are all things that you could avoid doing yourself.

Typical Pre-Listing Activities

1. Research Current Properties
2. Research Sales Activity from MLS and public records databases
3. Provide Average Days on Market Assessment
4. Review Property Tax Roll
5. Prepare a Comparable Market Analysis (CMA)
6. Verify Ownership and Deed Type
7. Verify County Public Property Records
8. Perform Curb Appeal Assessment
9. Provide Public School Value
10. Provide a Listing Presentation
11. Analyze Current Market Conditions
12. Present Credentials
13. Deliver CMA Results
14. Discuss Planning and Strategy
15. Explain Listing Contract, Disclosures & Addendum
16. Screen Calls from Buyers or Agents
17. Explain Homeowner Warranty

Selling the Property Activities

18. Review Title Details
19. Order Plat Map
20. Create Showing Instructions
21. Obtain Mortgage Loan Information
22. Review Homeowner Association Fees and Bylaws
23. Submit Homeowner Warranty Application
24. Add Homeowner Warranty in MLS
25. Review Electricity Details
26. Arrange Inspections for City Sewer/Septic Tank Systems
27. Collect Natural Gas Information
28. Provide Security System Status
29. Determine Termite Bond Status
30. Analyze Lead-based Paint Status
31. Distribute Disclosure Packages
32. Prepare Property Amenities
33. Detail Inclusions & Conveyances with Sale
34. Compile Repairs Needed List
35. Send Seller Vacancy Checklist
36. Install Lockbox
37. Make Copies of Leases for Rental Units (if applicable)
38. Verify Rents, Utilities, Water, and Deposits for Rentals
39. Inform Tenants of Listing for Rentals
40. Install Yard Sign
41. Perform Interior Assessment
42. Perform Exterior Assessment

Advertising and Marketing a Listing

43. Enter a Profile Sheet into the MLS Listing Database
44. Provide Copies of MLS Agreement
45. Take Additional Photos for MLS and Marketing
46. Create and Advertise Property Listing
47. Coordinate Showing Times
48. Create and Mail Flyers
49. Compare MLS Listings
50. Develop Marketing Brochure
51. Notify the Network Referral Program
52. Create Special Feature Cards
53. Analyze Feedback Emails and Faxes

Handling Offers and Contracts

54. Receive Offer(s) to Purchase
55. Evaluate Net Sheet
56. Counsel and Mediate Offer(s)
57. Deliver Seller's Disclosure
58. Obtain Pre-qualification Letter
59. Negotiate Offers on the Seller's Behalf
60. Mediate Counteroffers or Amendments
61. Fax Contract Copies
62. Deliver ?ffer to Purchase Copies
63. Assist with Escrow Account
64. Distribute Under-Contract Showing Restrictions
65. Update MLS to Óale Pendingl/li>
66. Review Credit Report
67. Deliver Unrecorded Property Information
68. Order Well Flow Test Reports (if applicable)
69. Order Termite Inspection (if applicable)
70. Order Mold Inspection (if applicable)
71. Confirm Deposit and Buyer's Employment
72. Follow Up with Loan Processing
73. Communicate with Lender
74. Confirm Approval of Loan
75. Remove Loan Contingency

Home Inspection and Home Appraisal Activities

76. Coordinate Buyer's Home Inspection
77. Review Home Inspector's Report
78. Interpret Loan Limits
79. Verify Home Inspection Clauses
80. Contractor Preparation
81. Confirm Repair Completion
82. Attend Appraiser Appointment
83. Provide Appraiser Information and Remove Contingency

Closing Preparations and Actions

84. Ensure Contract is Sealed
85. Coordinate Closing Process
86. Coordinate Closing Formal Procedure
87. Assist with Title Issues
88. Perform Final Walk-through
89. Verify Tax and Utility Preparations
90. Review and Distribute Final Closing Figures
91. Request Closing Document Copies
92. Confirm Receipt of Title Insurance Commitment
93. Make Homeowners Warranty Available
94. Review Closing Documents
95. Confirm and Assist with Final Deposit
96. Coordinate with Next Purchase
97. Ensure "No Surprises" Closing
98. Final MLS Update
99. Follow Up and Resolve Repairs
100. Documentation Follow Up
101. Hand the keys to the new owner

Posted by Alan Andrew on April 5th, 2007 3:09 PMPost a Comment (0)

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