The “Jewel of the South,” as many have called Atlanta, refuses to be denied.  With an influx in population due to steady job growth, Atlanta earns the #10 spot in a recent Forbes Magazine article. 

This just in case you were about to jump off the cliff after listening to the national real estate update on the news.  You really have to filter the news when anything is reported as a national statistic or trend.  You wouldn’t listen and believe a weatherman if he told you it was going to be sunny over the entire United States tomorrow, would you?  How is that any different from the real estate market?

Certainly be thankful you are in a growing city like Atlanta, where there will always be demand for housing.  What is down, won’t be down long.

Considering what’s going on in the real estate market, you have a tremendous opportunity.  This opportunity requires you to make a decision though!  You have to decide if you are going to be a pioneer or a settler.  No, you’re not playing a game of Oregon Trail so calm down you children of the 80’s.  So what’s the difference and what are you?

pi⋅o⋅neer   [pahy-uh-neer] - one who is first or among the earliest in any field of inquiry, enterprise, or progress: pioneers in cancer research.

set⋅tler  [set-ler, -l-er] - one who establishes himself in a new region.

A pioneer in this real estate market is quite honestly a smart buyer, keeping in mind that the money to be made in real estate is not in the up time.  It’s all about buying low and selling high in those up times.  If you’re one of the few who is buying a primary residence with no other strings attached (such as, not owning another home somewhere else and/or having the good fortune of selling your previous home), words can’t describe the opportunity before you.  You can be a pioneer by simply buying smart.  Many homebuyers are sitting on the sidelines waiting to see just how low things can go.  I believe at the end of the day those folks will be very sorry considering inventories are high (although falling and showing promise of a turnaround) and rates are in the low 5% range (and sure to rise). 

If you already have a home which you are bound to for various reasons or maybe you have no desire to move, you can be a pioneer too.  Investment property, which I have talked about previously, is a golden opportunity for you to actually experience a return on investment RIGHT NOW.  Have you looked at your 401(k) or securities accounts lately?  Returns?  What’s that?  Learn the value of cash flow, buy an investment property, build equity, and sleep well at night Mr. Pioneer.

The alternative is to be a settler, the person that follows the market and the crowd.  When it’s just about to crest, you are buying and following those clever pioneers.  The bad news is that crest soon turns into a valley, and there goes your profit, your equity, or even worse your property.  Sure, you can make money as a settler, but literally every day you wait costs you money. 

As your real estate consultants, our job is to advise you and keep your home search or home sale “between the ditches,” as my grandfather used to say, teaching me to drive his old truck on dirt roads in south Georgia.  Simply put, we win when you win, and that includes finding values, negotiating values, and facilitating a smooth transaction.  The moral of the story is, as in all of life, you have a decision to make.  If you can afford to do so, be a pioneer.  Your long term wealth will thank you for it later.

As always, we’d love to be your home base for all your pioneering needs.

As one real estate agent or a team of real estate agents or even as a company of real estate agents, there’s certainly things we can do to impact this market.  I think the most important thing is that we have a positive attitude and remain opportunistic, work harder and smarter to ensure that our clients are receiving the highest level of service possible in a time when there’s a lot of finger pointing and shoulder shrugging.  Perhaps one of the best things we can do as real estate agents is pool our voice and become better advocates for our industry, an industry that affects virtually every family in the nation.  One of the benefits of being a part of the National Association of REALTORS® is that as one we are rather quiet, but as a group of REALTORS®, we have a tremendous voice.  As further evidence of the NAR’s committment to furthering our industry, the organization has put forth a 4 Point Plan aimed at “tweaking” the previously passed Emergency Economic Stabilization Act.  I believe that Act was monumental at a time when we all needed stability, but as time passes, there appears to be weaknesses that might miss the mark in truly impacting in the areas originally intended.  Lesley and I support the National Association of REALTORS®’ plea for more.  NAR has urged Congress to include the following provisions in any future legislation as part of this 4 Point Plan:

1. Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement.  The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers.  As a result, the credit has not been widely used or proven effective at stimulating sales. 
2. Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent.  New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages. 
3. Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures.  Don’t just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
4. Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management.  The banks have proven they have enough to do to simply properly manage their current lines of business.  Do we really want them to manage the home buying process?  Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.

The economic turnaround is, of course, complicated, but there is little doubt that stabilizing the real estate market by shoring up the lending market and finding ways to get money moving in and out is a neccessity.  Stay tuned for updates on how these changes are being accepted and more importantly implemented.

My son just celebrated his 2nd birthday last week.  The highlight of the day was him receiving a 5′x4′ train table that he plays “choo-choo” on with small wooden Thomas the Train engines, freight cars, etc.  It was kind of a big deal.  One of his favorite engines is a great big blue engine pulling the “Express” passenger cars.  His name is Gordon, and we hear all about him.  Gordon’s mantra, in which he repeats over and over, is “Strongest and Best!”  He says it, and he believes it.  The Thomas and Friends television show, which we have become intimately familiar with, portrays Gordon as a very proud engine.  He’s dignified, and his attitude demands of him the best.

It got me thinking.  I see a story in almost everything.  That’s just kind of what I do.  I know you’re thinking, “How does this relate to real estate?”  We have to have a mantra in life, a core value or set of values that drives us and resignates through our personality.  This mantra is not something to be bottled up and brought out when appropriate.  It spills out like a cresting cup of coffee on a bumpy road.  It becomes your personal life.  It becomes your business life.  In short, it becomes your life.  My drive has always been wrapped around doing the right thing and operating under the highest moral standards.  I think that’s kind of a given for most respectable business people.  But, besides that, what is my mantra? 

When we started The Peters Company we built it around one simple philosophy: Over service and over deliver.  Today without a doubt it’s my mantra.  It’s what I say, and it is what I believe.  We over service people by going the extra mile and paying the upfront cost.  You’ll find us doing anything from fielding a midnight phonecall from a client to working literally 28 days straight, which we have done by the way.  We over deliver by always giving our clients more than they were expecting.  When you read our reviews on Kudzu or simply talk to one of our clients, I believe you’ll hear this consistently.  We think you’ll agree that we are what we believe.  Give us a ring or drop us an email and let us show you what over servicing and over delivering is all about.

- Andy.

1. People have to have a place to live. – It’s basic but it speaks volumes about the real estate profession. Today there are 4.78 million people in the metro Atlanta area; it’s predicted there will be over 8 million by 2025.  That’s a lot of people coming in who will need a place to live.
 
2. Well-selected residential real estate will always go up in value. –According to the most recent report (2nd quarter, 2008) from the Office of Federal Housing Enterprise Oversight, home prices/values in Georgia continue to rise. There has not been a 12-month period in which home values have declined in Georgia. Click here for that report. 
 
3. All of us face challenges in our lives at one time or another. — A challenging market makes you appreciate the good times. It’s as simple as that.
 
4. Interest rates go up and interest rates go down, but you can always refinance when the money is cheap. — We are in a temporary situation in which it’s hard to find money for non-owner occupied properties and in which the public’s perception is that interest rates are high. But they will still
buy.
 
5. The greatest expense you will have in your lifetime, without a doubt, is taxes. – The level of taxation we experience in this country is remarkable.  Real estate is an investment that allows you to reach financial freedom and reduce your tax burden.
 
6. The tax benefits of real estate are, indeed, too good to be true. But they are true. – We need to constantly tout to our customers the exclusion from taxation of gain on a primary residence as the number 1 reason to own a home.
 
7. Inflation is our friend. — Sounds crazy, but controlled inflation can be helpful in growing our economy.
 
8. You can retire comfortably on as few as 8 - 10 rental houses. — Eight to ten rental properties, paid off, can be a substantial retirement income.
 
9. Investing in real estate is simple but it’s not easy. — Seek the advice of those who have ‘been there, done that,’ but don’t be afraid to jump right in.
 
10. In the words of John McCain ‘Our economy is fundamentally sound.’ — We are in a financial crisis, not an ecomonic crisis. Some of the media is comparing our current ecomony to the Depression; however, the unemployment rate during the Depression was over 25%, whereas our current national unemployment rate is around 6%. Also, compare our GDP to that of the Depression and they are nowhere near the same. We will overcome the current financial crisis and move on with a healthy economy.

John Adams is a broker and investor and known as an Atlanta Real Estate Expert. He also writes frequently for the Atlanta Journal Constitution and speaks publically about Atlanta’s real estate market!

We would personally like to thank John for all his insightful tips, articles and information!

Yesterday I talked a little about the opportunities out there, and I wanted to add a few more thought.  I received an uplifting email from our operating partner Shaun Rawls, and it inspired this message…

Increasing gas prices and the backlash from gas lines due to a shortage will continue to force people to evaluate the locations of where they live and where they work in the metro area, and you’ll see many home sales and purchases take place to solve these dilemmas. 

Consumers’ lack of confidence in the financial markets will, once again, prompt a flight to the real estate market.  After all, you can actually do something to improve the value of any piece of real estate, whereas the only thing you can do to improve the value of your stocks is to hit your knees and pray. 

Also, it’s hard for anyone to make a case other than “this is the worst of times.”  I think the prices of real estate in the wake of the biggest financial mess in modern history are virtually as low as they will go.  Any buyers who continue to hang onto the stale position of “it’s going to get worse before it gets better” has got to be responded to with a look that says, “You’ve got to be kidding.” 

This may be one of the blessings in this whole financial mess.  I think every real estate professional in our industry has the ammunition to feel confident in declaring, “This is the worst!  It can only get better from here!”  That means opportunity for those who seek it.   

There are two very important things in our near future, both of which will put wind in the sails of our industry.  One, a financial bailout WILL occur. Two, a new President will soon be elected.  I think November 5th will be a great day no matter the outcome.  With the election comes the removal of the dark cloud of uncertainty that we all have to live with for five more weeks.  Change is coming with either ticket.  Republican or Democrat, both parties offer a historic change component. 

In the meantime, Lesley and I must study the data, study the numbers and study the information that helps us be the most prepared real estate agents, selling houses for sellers and finding opportunities for buyers.  You must combine the right mentality with the right actions to create your success, and Lesley and I are poised to help you make sound decisions and take advantage of the market.  It’s easy to fall prey to fear just like everyone else, but if you rise above it, you can really prosper.

First time home buyers, Clients who need to buy their first investment property, Clients who need to sell and buy a bigger home, eco-friendly buyers and sellers, people who have growing families, getting married, commuting too far, dying, divorcing, losing their jobs, getting new and better jobs…all represent opportunity for you in this market!  Turn off the news, and you’ll notice that by removing the blinders your opportunities are much easier to find.