At the beginning of every year, we send a letter out to our clients we represented from the previous year.  Our purpose of the letter is twofold.  First and foremost to thank them for giving us an oppotunity in an ocean full of real estate agents.  Secondly, we always remind our past clients about the importance of filing for the Homestead Exemption on their primary residence.  This year’s letters have already gone out, but I wanted to post some helpful information and links in the event that you have purchased a home in the last calendar year.  

As you know, buying a home can be a huge tax advantage, so we want to be sure that as a new homeowner you know you may be eligible for a Homestead Exemption.

Georgia allows homeowners to claim a Homestead Exemption as a tax benefit that could amount to considerable annual savings.  To qualify the homeowner must occupy the residence and file at the county Court House or Tax Commissioner’s Office in person, by mail or on the web, depending on the county in which you reside.  Filing deadlines do vary by county, but we encourage you to do this as soon as possible.

For your convenience, we have attached the contact information below of most major Georgia county Tax Commissioner offices, so that you may file for exemption quickly and easily.  If your county is not listed, please visit www.georgia.gov/00/topic_index_channel/0,2092,4802_5083,00.html to find your county’s tax office information.  If you have any questions about the homestead exemption and its benefits, we encourage you to talk with your accountant.  Many thank to Leigh Clack with Neel and Robinson for providing these updated links and contacts.

Fulton County – deadline is April 1, 2009                   404-612-6440

http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&taxyear=2007&ownseq=1&jur=&LMparent=180

DeKalb County – deadline is March 1, 2009 (file by Friday, 2/27)  404-298-4000

https://dklbweb.dekalbga.org/taxcommissioner/index.asp?pg=homestead#applications

Gwinnett County – deadline is March 2, 2009            770-822-8800

https://ssl.gwinnetttaxcommissioner.com/Property/information/TypesOfExemptions.aspx

Cobb County – deadline is April 1, 2009                     770-528-8600

http://www.cobbtax.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=189

Clayton County – deadline is April 1, 2009                770-477-3311

http://www.co.clayton.ga.us/tax_commissioner/exemptions.htm

Cherokee County – deadline is April 1, 2009              678-493-6122

 http://www.cherokeega.com/ccweb/departments/assessor/

Henry County – deadline is April 1, 2009                    770-288-8180                 

http://www.co.henry.ga.us/taxcommissioner/PropertyTaxExemptions.shtml

Forsyth County – deadline is March 1, 2009 (aim for 2/27)     770-781-2106 

http://www.forsythco.com/DeptPage.asp?DeptID=25&PageID=299

Douglas County – deadline is April 1, 2009                  770-920-7272

http://www.celebratedouglascounty.com/tax/

Fayette County – deadline is March 1, 2009 (aim for 2/27)   770-461-3652

http://www.fayettecountytaxcomm.com/HOMESTEA.html

Paulding County – deadline is April 1, 2009                 770-443-7606

http://www.paulding.gov/gov/taxcommissioner.asp

The buyers are coming, the buyers coming!  Why do I feel like Paul Revere on his famous midnight ride?  We have spent a great deal of time in the field with our buyer clients over the last three weeks.  With all this renewed activity, I had a couple of observations.  First of all, I don’t think the sellers were prepared for this type of bump in activity so early in the year.  Of course, this is what we were hoping for and the trends suggested as much.  The rates continue to hover in the mid to high-4% range, and buyers are hard pressed for a better time to buy than right now.   We have had several clients here recently that are renting their primary residence so that they can take advantage of the opportunities in this market.  After meeting with these clients, we have a clear cut strategy to help them achieve their goals in a short window.  I think, no matter the market, every buyer wants to feel good about getting a good deal on their home purchase.  Now that I’m in the business, I have a little different take on what value is and how I, as a buyer myself, determine it.  It’s not all about getting a seller to come off the purchase price at a ridiculous percentage.  It’s about getting the best house that meets specific needs at the best price possible – that’s value to me.

Part of our fiduciary responsibility as real estate agents is to provide accurate and helpful data that aids our clients in making sound business decisions so we can market homes to sell and find values for our buyers.  A lot of sellers think that a real estate agent’s interpretation of the market, as it relates to a list price, is a determination of value.  No, that’s an appraiser’s job.  It’s a tough position to be in right now as a real estate agent.  Sellers look at you like you have a third eye when you simply report the news.  We are empathetic with our sellers, but we wouldn’t be doing our job if we were anything shy of honest.  When we list a house, we are not listing it at it’s value neccessarily; the buyer determines the value.  We are listing it at the best marketable price to attract a buyer and ultimately an offer.  That’s our job.  As mentioned here before when Lesley and I list a home, we list it to sell.  We aren’t in the business of listing houses.  We’re in the business of selling houses.  As a general rule when pricing, we try and find that “worry price.”  I wish I could take credit for that term, but we picked it up from our broker.  Nevertheless, it’s an accurate strategy that I wish every agent proclaimed and every seller subscribed to.  Here’s how it works.  Buyers today are not just looking at 3 homes and making a decision.  They’re looking at 15+ houses and making a decision.  Therefore, it’s important to be the prettiest and most competitively priced.  You’re looking for that price that a buyer walks into your home, loving it, loving it, loving it, and then worrying that its not going to last long at this price.  When I look back on my own personal real estate purchases, I followed a similar logic.  It’s where emotional attachment meets reality. 

When trying to evaluate value in a home, we think it’s important to take into consideration everything you have looked at.  In a buyer’s market, you have to rely more on the active listings as competition when pricing as a seller and determining value as a buyer.  The ultimate principle at work here is that the home is worth what you think it’s worth, but just be careful with that.  The story about your buddy getting a home at 85% of list was about 4 months ago.  Those kind of deals just are not out there as much anymore in the resale market because prices have been falling, and agents have been busy adjusting.  Even on the foreclosures and short sales, banks are pricing properties to sell, and you won’t find them coming significantly off their prices.  If they don’t sell within a short period of time, the prices are adjusted lower.  If you are fortunate enough to get a home at 85% of list price right now, the home was most likely overpriced and/or the owner was probably already considering a 5%+ reduction before your offer came along.  The latest figures from the fourth quarter of last year suggest that 53% of all homes on the market required a price reduction.  That says two things to me.  First, as professional real estate agents ALL OF US have done a lousy job pricing property, and secondly, this market has changed enough that it has thrown everyone off. 

So, where does that leave us?  Values are down, sure, but let’s all think twice about that lowball offer on the prettiest and most competitively priced listing that you are so worried someone else is going to grab.  The worry price works with pricing property for listings, and chances are good that if you, as a buyer, like something out there because you think it’s a good deal, someone else thinks its a good deal too.  Move on it if all things add up because it won’t last long.  Always keep in mind that the best opportunities sell first and sell for the most money.

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!

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

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!   

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.

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!

Lesley and I would like to congratulate Lynn on the sale of her home, which closed today (Tuesday October 14th).  Lynn is more than a client.  She’s a friend and a neighbor in Brookhaven Gardens.  We’re so sad to see her go, but we are happy for her and her move to sunny California.  Before moving out Lynn had an estate sale, which we advertised on the blog earlier, and someone asked her if she had miracle workers selling her house.  I don’t know about miracle workers, but we have certainly provided our clients with information and processes that get results.  If we can help you with anything relating to real estate, give us a call or shoot us an email.  We’d love to help you. – Andy

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. 

Today was a big day for Charlie and Liz as they closed on their awesome new home Wednesday afternoon.  Charlie and Liz found us through a friend’s referral, and they were a joy to work with.  They were looking for a large move-in ready home, and we found it in Alpharetta.  Lesley lived in Alpharetta, and I worked in Alpharetta for eight years.  We know the area very well, and we helped them find a great deal on a beautiful home.

Shepherds Pond home in Alpharetta

We’d like to thank Charlie and Liz for entrusting us to represent them on their transaction, and we’d also like to thank Kristin for referring us.  You don’t know how much we appreciate your referrals.  It’s the greatest compliment someone can give us.