The Peters Company believes in the power of information, and we are constantly updating our clients with news and views on all things real estate through a variety of media including electronic and print.  If you’d like to be added to the mailing list via email and/or regular mail, simply contact us at andy@thepeterscompany.com.  We would love to keep you posted!

My business card reads Realtor, not Psychic.  Nobody knows when the turnaround will occur in the real estate market for sure.  It’s been said that you don’t know when you’ve reached the bottom until things start to go back up again.  On a national level, I’ve heard “experts” say the end of the first quarter.  I’ve heard middle of the year.  Economists at the National Association of Home Builders semi annual forecast conference suggested that home prices will hit bottom in the middle of next year as a result of increasingly affordable prices, new home incentives, fewer housing starts, declining interest rates and pent-up demand (Wall Steet Journal, June Fletcher 10/29/08).  We really are blessed in Atlanta.  Recent data from ChartMaster is positive suggesting a turnaround is ocurring right now in metro Atlanta.

Home inventory in the metro area appears to have reached a bottom.  The months supply of homes has come down every month since July of 2008 after a steady climb at the beginning of the year.  Do you see the bottom?

The rate of decline in number of homes sold vs. the same quarter one year earlier accelerated during early 2007.  However, the rate of decline from the previous year reversed after the first quarter of this year.  Do you see the bottom?

All we can do is deal with the hands we are dealt.  Make lemonade out of lemons.  Make mole hills out of mountains.  Put on our big boy drawers…Whatever cliche you want to use.  The good news is that it can’t get much worse.  The election will most likely bring some stability to our economy, no matter who is elected.  Rates will go up a little further in the very short term and then fall in the long term once the dust settles in my opinion.  The government is trying to spur on refinances of troubled mortgages, which should help stave off a percentage of the foreclosures rushing through the market.  In the meantime, be opportunistic if you are a buyer or investor, and if you are a seller, play the percentages and think like a buyer.

As always if we can help you in any way, it would be our pleasure.

When a home goes on the market that is overpriced, the market rejects it and it fails.  A failed listing can come as a withdrawal from the market or an expired listing.  Either one is not good if your goal is to sell your house.  Most of the time a “re-list” is accompanied by a price reduction, more time on the market, and further frustration. 

Here are the ChartMaster statistics showing failed listings in Metro Atlanta over the last three years:

3rd Quarter 2006 - 47.8% of listings failed

3rd Quarter 2007 - 62.5% of listings failed

3rd Quarter 2008 - 66.9% of listings failed

With the trend going up, it’s a black eye for our industry.  It shows that more and more people are pricing their homes too high.  Maybe its caused by denial.  Maybe its caused by greed.  Maybe its caused by real estate agents who don’t know the statistics.  I think it’s a little of all three.  We all need a good dose of reality.  As mentioned before, you can’t play to the possibilities in this market.  You have to play the percentages.  Selling homes in this market is not difficult, although it’s more difficult than before.  People are still buying homes, but you have to be well priced to attract buyers and you have to be “best dressed.” 

Now more than ever you need a realtor to sell homes, and you need that realtor to be realistic and proactive.  The Peters Company has built a reputation for selling homes in the least amount of time (30 day average days on market in 2008) for the most amount of money (96.6% of sales/list price in 2008).  How do we do this?  It takes the right statistics and the right reaction to those statistics along with a dedication to overservicing and overdelivering.  We tell all of our clients when they have chosen to do business with us that it’s always “us” against the market.  If we can beat the market, it’s a win for our clients and it’s a win for us.  Let us show you how we do it.

The Peters Company has moved into 2nd Place amongst teams in the Keller Williams Realty Peachtree Road office!  We want to thank all of our wonderful clients that have helped us prove you can succeed in this industry, no matter the market.  We are relentless in our pursuit because we are so passionate about this business and the opportunities that it presents you and all of our clients.  Don’t forget to check us out on Kudzu.com where our past clients have rated and reviewed our services.  Thank you again!

If you’ve ever tried to read a Legal Description for a property, you know how difficult it can be to understand.  Legal Descriptions represent the pivotal information in a contract that make it valid because it’s incredibly specific in its physical location.  An address is not a valid legal description in a contract.  You may be interested in finding more information about your property or your neighborhood, and a great place to start is with your legal description. 

At a meeting this morning, we were given a great presentation by Mrs. Leigh Clack, closing attorney with Neel and Robinson, on how you go about figuring out a legal description.  I found it incredibly helpful, and I thought I would share it. 

Here’s a Legal Description:

All that tract or parcel of land lying and being in Land Lot 145, 14th District, Fulton County, Georgia, being Lot 15, Block C, Grant Park Acres, as per plat recorded in Plat Book 235, Page 25, Fulton County Records, said plat being incorporated herein for reference.

123 Hill Street, Atlanta, Georgia 30315

Tax parcel 14-145-9-9-0

Here’s what that means:

Land Lot 145, 14th District:  The county is divided into smaller pieces for mapping and identification purposes.  This is also how deeds are indexed when recording.  This also matches part of the tax parcel.

Fulton County:  Deeds are only recorded in the county where the property is located.  Some properties lie in two counties and those deeds should be recorded in both courthouses.

Lot 15, Block C:   This identifies the exact Lot and Block of the subject property.  There can be multiple Blocks on one plat, so confirm that you have the correct Block first and then find the right Lot.

Grant Park Acres:  Name of subdivision based on the title of the recorded plat.  This name may not appear on an entrance sign, and sometimes a new or different name is actually used to identify the neighborhood (such as “Kirkwood” or “Brookhaven”).

Plat Book 235, Page 25:  Where to find the recorded plat.  Newer plats are available on GSCCCA, but all plats are available at the courthouse.

Address and Tax parcel:  Additional helpful information to confirm that you have the correct property.

Many thanks to Leigh Clack with Neel & Robinson, Attorneys at Law LLC.  You can reach Leigh at lenox@neelandrobinson.com.

I was fortunate enough to be in a meeting today with our Operating Partner Shaun Rawls.  In the meeting Shaun shared with us the 3rd Quarter Market Statistics for the Metro Atlanta area.  I’ll be weaving some of those statistics through online blogs here, on the Metro Atlanta Real Estate Update on Facebook, as well as our mail pieces.  By the way, if you ever want to be added to our mailing list, simply shoot me an email.  We’d love to stay in touch with you, keeping you up to date with the market.

Everyone knows this is a buyer’s market, but what if you have to or JUST WANNA sell your house?  Lesley and I are going on at least 2 listing appointments per week, but we don’t take every listing.  We truly believe in being honest with our sellers, and we would much rather turn someone down than let them down by taking an overpriced listing.  We know that when property is priced right that it not only sells, but that it sells for more than a property that is priced high taking a price reduction.  Now, more than ever, you need a realtor who knows the stats, knows how to professionally market your home, and who is prepared to shoot you straight on your home’s value.  Now is not the time to “try” the market.  It’s brutal, and it will make you look pretty silly.  Now is not the time to play in the possibilities of what you may get for your home.  You have to play the percentages.  You have to have real statistics to price with in order to even get a whiff of activity, much less get your home sold.  In the 3rd Quarter, nearly 67% of listings failed, meaning they were either withdrawn or expired.  51% of listings needed a price reduction before they sold last quarter, and of the homes that sold nearly 1 in 5 was a foreclosure.  Yikes! 

Don’t choose a real estate agent because they give you a price that’s higher than all the rest.  Chances are they are setting you up for failure in this market.  Choose a real estate agent based upon their plan to sell your home.  Keep in mind that until your house sells you’re not a seller.  You’re a tryer.  Don’t be a tryer.  Be a seller.  Sell your home, and let us show you how.

Congratulations to Scott and Mary!  We just sold their Collier Green 1 bedroom and 1 bathroom condo in 33 days - unheard of in this market!  Scott and Mary were a joy to work with and were referred to us by past client and friend, Anna!  Thanks for the referral, Anna!  Referrals are truly at the heart of our business. 

Liquidity is a term being thrown around a lot right now as banks clamor to secure deposits so they can in turn lend money.  The long and short of it is that there is still a lot of money out there, but a lot of people have pulled money out and are sitting on the sidelines waiting for this mess to settle down.  These giant peaks and valleys we have seen in the market are a perfect example of that “sideline” money jumping into the market and then dumping.  Don’t expect that trend to end any time soon.

This liquidity challenge has changed things in the lending industry.  It’s a little harder to secure a loan these days, but there are still plenty of loans being made.  Don’t panic!  Lenders were destined to become more cautious with their loans, because they were so greedy reckless during the boom of 2003 through the beginning of 2007. Their carelessness has created the newspaper headlines we see today describing delinquencies and foreclosures, made worse by falling home values.  Here’s some things you should expect in the wake of the recent financial greed party situation.

You will need more documentation to secure a loan.  This simply means that lenders are doing more than the quick check of credit to preapprove buyers.  Expect lenders to request W-2s, tax returns and bank statements more times than not.

Private Mortgage Insurance standards have tightened.  When a buyer doesn’t put down at least 20% down on the purchase of a home, most lenders require private mortgage insurance (PMI), which is to insure the lender upon your default.  By the way, the buyer foots the bill for the monthly premium payments.  Some mortgage insurers are refusing to insure properties that fall into a declining market category as determined by their independent research.  This leaves buyers scrambling to hold deals together.  The fine folks at the FHA have stepped in to help in these cases with the only downside being you’ll have to use a lender that has FHA certification.

Fannie and Freddie are passing along fees.  Before the government took over Fannie Mae and Freddie Mac, the two entities started adding fees onto mortgages for consumers or passing along through increased an interest rate.  These are often times referred to as “loan level adjustments.”  These fees are being reevaluated currently as they are seen as an obstacle in supporting affordable housing.

Jumbo loans are tough.  Jumbo  loans are issued for mortgages of $417,000 or more, and these jumbo loan rates are higher than rates on conforming loans considering theres’ more at stake for the lender.  Many lenders are requiring as much as 12 months’ worth of house payments in readily available savings in order to secure their jumbo loans.  With higher jumbo rates, many borrowers are turning to 5/1 adjustable rate mortgages to help bridge the gap. 

On a positive note, rates have been falling here recently on an apparent reaction to the Fed’s rate cut on the 8th of October.  Despite challenges on the documentation and qualification side, money is inexpensive to borrow, and my contacts in the industry suggest that the mortgage rates will continue to fall.  Today’s 30-year fixed rate was at 5.625, and I almost fell out thinking about it going lower.  If you have good credit, there’s absolutely nothing to worry about.  The developments mentioned above shouldn’t affect those with good credit much, if at all.  The first time home buyer really will not know much of a difference, but just be prepared if this is not your first home purchase.  A little bit has changed recently.  Nonetheless, it’s still an amazing opportunity to buy, and you will be rewarded for your inconveniences with an excellent interest rate. 

Lesley and I work with some wonderful lenders that, like us, simplify things for you.  You can click on “Vendors” under the “Resources” tab on www.thepeterscompany.com to see some of our recommendations.

BusinessWeek published an article this week on the best and worst performing zip codes in the top 20 metropolitan areas.  As mentioned here before, we get caught up in the news and paint the real estate market with a broad brush because all we hear is bad news.  I thought this was a helpful article because it attempted to point out the good with the bad, something more of the media should aspire to do.  Lesley and I have lived in Alpharetta before, and I spent almost seven years working in the area.  It’s a great community, which has seen an influx of homeowners thanks to newer affordable luxury housing, a robust commercial market, and the rise, fall and leveling out of the technology sector so prevalent in the area. 

The only flaw I see in these statistics is that it’s built around the change in percentage of homesellers’ list prices.  We really don’t know how realistic these homesellers are or how motivated they may be. It’s quite easy to deny the downturn in the market and to take the “Well, my house hasn’t lost it’s value” approach.  Let’s face it.  We’ve all lost money.  Lesley and I have lost nearly $50,000 in equity since we purchased our home last year, and we purchased in one of the hottest zip codes in the state of Georgia.  With the correct information from a professional real estate agent team, homeowners get realistic home sale and market statistics, which should in turn be reflected in quicker home sales at a higher list/sale price.  Don’t leave the sale of your home up to chance.  Gary Keller, the founder of Keller Williams Realty, calls everyone from homeowners and agents to “get real and get right.”  The market will be back, but until then we have to be students studying the statistics and paying close attention to the many variables in the economy affecting the rise and fall such as interest rates, liquidity, employment, consumer confidence, gas prices, etc.  It’s a much more complicated climate to do business in these days, but that’s even more reason to seek the guidance of a Realtor.

Highlights from the article include:

Best-performing ZIP code: Alpharetta, Ga. 30022
Annual % change in asking prices: +12%
Median listing price: $464,664
Days on market: 84

Worst-performing ZIP code: Atlanta (Oakland City), Ga. 30310
Annual % change in asking prices: -49%
Median listing price: $66,426
Days on market: 99

*Editor’s note: The year-over-year percentage change compares the 90-day rolling average of median asking prices for existing single-family homes in the 12-month period ending July 11, 2008, to the same period a year earlier. Only ZIP codes with at least 50 active listings as of July 11 were selected.

Source: Altos Research

In today’s market, it’s hard to look at property in ANY price range and not find at least one short sale.  I came across a Business Week article online that’s a good resource for short sells, answering fundamental questions you may have about these type opportunities for both buyers and sellers needing help. 

We all hear the news and read the newspapers that proclaim the doom and gloom of the real estate market.  I’m hear to tell you that in Atlanta, it’s not as bad as advertised.  However, as a buyer, it is in your best interest to understand the new opportunities out there such as short sales and certainly foreclosures.  They are not all good “deals” for buyers since they aren’t all priced at the bottom as a bargain, but the main point to get across is that the process in making an offer and procuring these type properties is different than your traditional real estate transaction.  It requires a little more patience on your part if you were to go out making offers on these type properties.  We describe it as a “high risk, high reward” opportunity. 

On the sellers’ side, we are recommeding many inquiring sellers seek the approval of short sale status if they are incredibly upside down on their home and in deep need of selling.  It’s a tragedy that it reaches that level, but it is definitely better than a foreclosure.  A closing attorney once told me as I was signing my name a million times at a closing table that in Georgia the bank can take your home in a process that is “quick and painful.”  It’s true.  Explore all your options if you are in jeopardy of losing your home, which definitely includes gaining approval on a short sale.