A real estate transaction only occurs when a seller can convey clear and marketable title to a piece of property to a buyer.  Sounds pretty easy, huh?  Well, there’s a lot that the closing attorney must do before validating clear and marketable title.  This is an incredibly important step because if you were to close on a home without owners title insurance only to find out later your property is stuck with previously unknown encumbrances or past claims, guess who has to pay?  You.  Attorneys overall do a great job of validating title, but we’ve heard the one in a million stories that will make you think.  Your lender will most likely require lender’s title insurance, but don’t forget about owner’s title as well.  It is vital protection that can really come back to haunt you in the event you don’t secure it at the closing table.

In a continued effort to provide you with relevant information, Leigh Clack with Neel and Robinson (lenox@neelandrobinson.com)  reveals what all is involved in a title search.  If you have further questions, feel free to contact us or Leigh Clack directly.  She can be reached by phone at (404) 705-3690.

WHAT IS CHECKED IN A TITLE SEARCH?

1. Chain of title = each deed from seller to buyer
   1. Legal description
   2. Signatures from all owners
   3. Proper execution (witness, notary, corporate seal for company)
   4. No “breaks” in chain = buyer who does not sign as seller later
   5. Most recent deed should match seller’s name on sales contract
2.  Property taxes
   1. Enforceable for seven years
   2. All Georgia properties have county taxes; some also have city taxes
   3. Not removed by foreclosure or bankruptcy
   4. Interest and penalties due if paid late
   5. Homestead exemption and other discounts – determine if still applicable for current year
   6. Some cities/counties also collect water, garbage, other utilities
3.  Open mortgages (security deeds)
   1. Current owner’s mortgages – confirm open – get payoffs
   2. Previous owner’s mortgages – confirm paid – get releases
4.  Liens and judgments
   1. Liens for materials and/or labor are specific to each property
   2. Judgments against owners in chain of title attach to any property owned by that person
   3. Valid for seven years from filing – can be refiled to extend
   4. Common names may have judgments that are not theirs – need to confirm with social security numbers and affidavits
5. Income tax liens
   1. Valid against all property of taxpayer
   2. Federal tax liens (IRS) valid for ten years – state for seven
   3. State liens removed by foreclosure – federal must be given notice and right to redeem
6.  Pending lawsuits and divorces
   1. Lawsuits affecting subject property must be resolved
   2. Other lawsuits – confirm no judgment entered yet
   3. Divorces – must be resolved or have all parties (spouses and their attorneys) agree to the sale
   4. Probate/trust/estate/guardian issues – determine who can sell

As is customary, The Peters Company brings you this monthly market snapshot for the metro Atlanta area.  We believe in market statistics, and we are proud to provide you with the best stats in the metro area from Chartmaster Chuck Carr.  It’s hard to sell homes in this market, but it’s even harder when you don’t understand the market.  We have always paid the upfront price to ensure we know what’s going on out there and so we can provide timely insight and valuable advice.  The first time homebuyer is the one that’s driving the bus here.  When the lower priced homes sell, it creates a domino effect throughout all price ranges.  The new tax credit, the coming Spring season, and the historically low interest rates have created a perfect storm for the first time homebuyer. 

The detached home market is included here:

Here are a couple of observations:

• After comparing these numbers to the February MMO, total inventory has jumped from 12.7 months to 13.9 months.  Now that spring has sprung, we expect more and more homes to hit the market.
• Foreclosures are up to over 32% of market sales, a number that is likely understated given the tendancy of some agents to “miscode” their listings.  This just means that there are a lot of great deals out there that buyers are taking advantage of.
• The median list price is down over $5,000 from last month.  Sellers are becoming more and more realistic, and the first time homebuyer is back in business thanks to low prices, low rates, and free money courtesy of the $8,000 tax credit.
• The percentage of failed listings (listings that did not sell) jumped to 70%, a little over a 3% increase over last month.  Effective pricing strategies and superb condition continue to make the difference in whether or not you sell.

If you have interest in the attached (condo/townhome) market, simply shoot us an email, and we will be happy to provide it for you.  These statistics are the tip of the iceberg.  If you are considering buying or selling this year, I hope you will give us an opportunity to share some more with you.  It would be our pleasure to work with you.  If you would like to subscribe to our bi-weekly email, The Metro Atlanta Real Estate Update, simply send us an email.  We’ll be glad to add you to the distribution!

Courtesy of WSJ, by way of Freddie Mac

We get that question about a handful of times every week.  Just like the real estate market, the answer is rather pat.  We won’t know until things start going up when we have hit the bottom.  The bottom will be in our rear view mirror by the time we figure it out.  Back to the mortgage market.  It’s hard to imagine things dropping further as it relates to rates.  We are already in unchartered territories considering we are at all time lows.  Current 30-year averaged rates sit at 4.85%, the lowest point figure ever recorded since Freddie Mac started recording in 1971.  You can take a look at the chart above for an indication of how far we’ve come in the last year. 

Everyone is trying to “time” the market, whether its in real estate, in mortgage rates, the stock market, etc.  It’s impossible to time the market.  Like playing with fire, sooner or later you are going to get burned.  A recent Reuters report reveals some interesting insight from one of the mortgage insiders, John Koskinen, the head of Freddie Mac.  Koskinen ”said on Friday that U.S. home loan rates are near their bottom and any further decreases will be small.”

So, the moral of the story here is that you don’t want to let the bottom pass you by.  It’s a great time to buy real estate.  It’s a great time to refinance if it’s financially feasible for you to do so.  We are lower than low at this moment.  Rates are lower than they have been in over 37 years.  It’s been said that a roughly 1% rise in your interest rate is comparable to paying 10% more for your home.  It’s hard to imagine a better position to be in.  If we can help you take advantage of this market, we would love to help.  www.thepeterscompany.com

The Peters Company is involved in more and more distressed property transactions these days.  It’s the unfortunate state of affairs right now in our market.  Distressed property is categorized as most commonly “short sales” and “foreclosures.”  The truth is that these distressed sales are providing amazing opportunities for our buyers.  It has been said that one in four transactions in the metro Atlanta area is a foreclosure according to 4th quarter 2008 statistics.  I might argue that it’s a little higher than that as many agents miscode their listings and seem to leave off the fact that their listing is a foreclosure.  Given the numbers of buyers searching specifically for foreclosures, the idea of leaving off a glaring marketing code such as “foreclosure” is hard to believe, but it happens quite frequently.  In addition, many people have called 2009 as the “Year of the Short Sale.”  The short sale route is a much more beneficial route for a seller to go without having to deal with foreclosure.  The lenders are VERY accomodating at this point for those in trouble qualifying for hardship. 

In an effort to provide our clients with the highest level of service, I am taking a class to receive a special designation as a Certified Distressed Property Expert (CDPE).  I hope to use this new designation to help our clients have even more success finding, negotiating, and obtaining distressed property.  In addition, we will be even better positioned to represent sellers in short sale transactions, and we anticipate marketing more great foreclosure properties through our banking relationships. 

By mid April, I should have the CDPE designation, which you will start seeing on more and more of our marketing.  It’s believed that only 1% of all real estate agents have this designation, and we are so happy to add this additional value for our clients.  If you have questions about distressed properties as a buyer or a seller, it would be our pleasure to privately consult with you on the benefits.  Thanks for trusting The Peters Company for all your real estate needs.

Those of you in the market will be pleased to know that rates have fallen again thanks to the government’s commitment to purchase bad mortgage debt.  The most recent quote I received was 4.5% on a new home loan purchase.  4.5%!!!  The FHA rate is slightly higher, but still under 5%.  The nice thing on that FHA loan is that you only have to put down 3.5%, and the money can be a gift.  If you need a good lender, we have several that we recommend quite frequently.  Keep in mind that if you are interested in refinancing that the rates that you typically see and hear about are for new home purchases.  The refinance rates are slightly higher.

Those of you out of the market may want to consider getting into the market with rates like this and deals available everywhere.  We have helped people in just about every situation take advantage of this market, and we would be happy to talk with you about it.  The market is primed for a pickup like never before.  We still have higher inventory; home values are down; the interest rates are at historic lows, and perhaps the best news of all is that we are entering the busiest real estate season in Spring! 

Let us know if we can help you on the buying or the selling of your home.  You’re in good company with The Peters Company.

The Peters Company just listed this beautifully renovated 3bed/2bath classic in historic Decatur. It’s located in the Clairemont-Great Lakes neighborhood and incredibly convenient to Emory Hospital, DeKalb Medical Hospital, and CDC.  The home has been renovated and updated front to back, side to side, and a recent addition makes for an expanded kitchen and an oversized master suite.  The home sits back tucked away from the road, and the lot is large and deep with a deck overlooking the private fenced in yard.  You must see this home. You’re going to love it, and it won’t last long!  We are well versed in the Decatur home sale market, and we have helped many buyers in Decatur as well.  To see this listing, please contact Andy at 770.634.2782 or andy@thepeterscompany.com for an easy appointment.

We are blessed to intimately know many diverse areas of Atlanta, including inside the perimeter from Downtown north and the outer arc of DeKalb, North Fulton, and Gwinnett Counties. There is perhaps no market we know better than the Buckhead/Brookhaven market. Lesley and I have been fortunate to help buyers and sellers here for years. We have fortunately seen the rise, and unfortunately we have seen the fall. Isn’t that the case everywhere, and won’t it always be the case? The answer is certainly yes, and while the popularity of intown Atlanta’s Brookhaven sustained and sheltered property values for an extended amount of time, it has, like all the other areas, given way to the market. Having shown property in Brookhaven quite a bit recently, there are areas which were historically high flyers that are now prime for the picking for the first time homebuyer again. Ashford Park, the babydoll on the eastside of Brookhaven, has some unbelievable deals right now. As of today, there are 100 active listings in Ashford Park, and I don’t think I’m going out on a limb here by saying that you can get what you want for the price you want. New construction infill became “the way” of the neighborhood several years ago, and now that the market has softened there are some amazing new homes available at a mere fraction of their original list prices. Drew Valley, which is the across the street neighbor to Ashford Park, has even better values. For years Brookhaven home values grew in double digits to the point that prices really grew out of the first time homebuyer’s wheelhouse price range. With values being down 10% or more over last year, the first time homebuyer is coming back to the area! Personally, I think that’s a great thing. The first time homebuyer brings a lot of energy into the community. They renovate houses. They spend money. They make the area better. What goes up must come down, and that has been the case with the real estate market time and time again, but buying real estate in desirable areas like Brookhaven never goes out of style.

First time homebuyers, you already know this, but I would be remiss if I didn’t mention it time and time again. The goverment is giving away $8,000 in tax credit through December 1st of this year. There are special stipulations so contact us for details. In addition, these are the lowest interst rates on record in over 30 years, and a glut of inventory gives you the pick of the litter. Smart buying decisions right now will translate into money in your pocket in the future. For more information on the Buckhead/Brookhaven area or if we can help you in any of the other areas of Atlanta, please contact us via email at andy@thepeterscompany.com or via the “contact us” page on our website. We would love to help you maximize your opportunity in this market.

The latest edition of “This Month in Real Estate” provides us with a little bit more information on the Homebuyer Tax Credit as well as some insight on how to sell your home in this market.  Here’s a hint.  It’s a five letter word; it starts with a “P”, and it rhymes with “ice.”  Most of this information has already been reported on this blog before, but if you are like me, video sometimes is a little more entertaining than words.  Thanks for visiting.  Enjoy, and if we can help you or anyone you know with real estate needs, you can email us at andy@thepeterscompany.com.

Having attended at least one listing appointment per week for the last several months, we have had to share our fair share of bad news.  In fact, we talk more people out of selling than into selling.  That’s the truth.  As we have said before, we are in the market of selling homes, not listing homes.  If we take a listing it is because we think we can sell it.  This is not the market to get what you want for your house, and it’s really not, in some cases, the market to get what you need.  If I can paint with a broad brush here, I don’t think I’m going out on a limb by saying that inventories remain high and homeowners remain frustrated. 

There is some positive though.  This strange market we are in has created a counter culture for the rental market for the landlord and the tenant.  It has become harder and harder to secure financing thanks to the tightening credit market so more and more renters are looking to take advantage of the market not by buying, but by renting.  What does that mean? 

Many homeowners find themselves upside down on their mortgage or simply refusing to take a large loss by selling their home.  So, what’s a homeowner to do?  Rent it baby!  As in the resale market, a well priced rental home rents fast.  It’s really a great time for the tenant too because they are, in many cases, able to rent a home/townhome/condo at a discount versus the traditional apartment complex.  It’s a win-win for everybody because these new opportunities for tenants allow the landlord homeowner to move on and accomplish goals as well, such as moving up, down, or out of town. 

We have been fortunate to work with some smart couples recently that did not let the market scare them.  In fact, they are rolling with the punches and maximizing their opportunity.  Two couples in particular have already bought or are under contract to buy their “move up” home while renting their current condo/townhome.  This window of opportunity to buy in a perfect storm of high inventory, depressed home values, and historically low interest rates will not last forever.  The smart buyer understands the economics of this decision beyond the initial sticker shock of two mortgages.  A break even on a rental, or even a slight negative cash flow, can pay massive dividends when coupled with a purchase in these times.  As said before, money can be made in an “up” market, but a whole heck of a lot more can be made in a “down” market. 

If you want to move, but you feel stuck or out of options, let’s talk.  We have some great ideas, and we will be happy to discuss the options available to you with no obligation to buy whatsoever.  We aren’t here to talk you in to anything.  We don’t operate like that.  In fact, I think our clients would agree that we are fairly conservative on the risk front.  Regardless, we have relevant statistics and ideas to share with you, and we want all of our clients to make the decisions that are best for them and consistent with their long term goals.

One of the easiest ways to achieve success is to always surround yourself with good people.  In business, I’ve always found a way to build a strong network team of professionals that I know and trust.  These pros provide me with wise counsel, add value to what I do, and just as importantly, provide my clients’ with the same level of service and knowledge that I strive to give.  One of those professionals on our team is Brad Trussell, an All State Exclusive Insurance Agent.  Brad happens to be our personal insurance agent, and Lesley and I appreciate his willingness to consult with us and our clients on the differences, pitfalls, and benefits of insurance coverage.  I have asked Brad to contribute periodically to our blog.  My goal is to provide relevant information across the board for the homebuying consumer.  I hope you find the information helpful.  This particular article by Brad is about the importance of getting your homeowner’s insurance right.  Many thanks to Brad for his valuable insight.

Insurance Tidbits:  Why does Homeowner’s Insurance get short sided?

by Brad Trussell, All State Exclusive Agent (bradtrussell@allstate.com)

When is the last time that you turned on the TV and saw a commercial about Homeowner’s insurance?  Auto insurance gets all the press in the commercials you see on TV, and while it does carry the most potential exposure liability, what is the biggest and most valuable asset that you own?

The most common mistake seen in the homeowner’s insurance market is a homeowner’s policy that insures the home for the market/sell price.  The reason for this mistake is that when you buy a home, you are buying the home AND the land that the home sits on (also known as “the lot”).  However, there is no homeowner’s insurance policy that provides coverage for the dirt that the home is built upon (your homeowner’s policy will provide liability coverage for incidents that take place on the property, but there is no physical damage coverage).  Therefore, your insurance agent should work with you when writing your homeowner’s policy to ensure that you are not over-insuring your home, or worse yet, under-insuring your home.

Most insurance agents have access to a company provided estimator that uses the characteristics of your home to calculate an appropriate replacement value (cost to re-build your home).  Examples of these characteristics can be: exterior walls (brick, siding, stucco), number of bathrooms, is the home built on a slab, have a crawlspace or basement, among many others.  Another measure in calculating a replacement cost of your home would be to know the “cost per square foot”.  Typically, homes can range from $100/sq. ft. to $180 sq. ft. depending on the size and materials used to build the home.  Once you obtain this square foot value, you simply multiply the cost per square foot by the square footage of your home, but make sure to back out any garage and basement square footage.

If you have any further questions regarding your homeowner’s coverage, then contact your local personal insurance agent or feel free to call my Allstate office at (404) 842-0399.

 Brad Trussell, Allstate Exclusive Agent  3925 Peachtree Road, Suite 150  Atlanta, GA 30319  (404) 842-0399