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.

If you get the Metro Atlanta Real Estate Update from us then you have already received a peek at the falling mortgage rates.  If you are not getting the Metro Atlanta Real Estate Update, first of all WHY?  Second of all, there’s always time to get signed up.  Email me at andy@thepeterscomany.com for the weekly email update on all things relating to our market.

The Fed was looking for a way to expand lending, and the expanded rescue has done just that.  Mortgage rates tumbled as much as a half of a percent on Tuesday and are the lowest they have been all year.  The Peters Company has been calling this for months, and it couldn’t have come at a better time.  People are swarming to refinance as the volatility leaves everyoe worried that this is a small blip and that the rates will surely jump back up.  I wouldn’t play around if you are considering refinancing.  Sure, the rates could go lower, and they probably will slowly.  However, I’m not willing to take the chance given where we are in the low 5% range.

So, what does this opportunity to refinance mean for the economy?  Well, perhaps the best thing is that it potentially frees up more money for consumer spending, which is something very much on the minds of all of us churning towards the holidays.  The auto industry could use a little bit of that money I believe, but perhaps the best thing that could come of this is to fight off continued talk of a recession.  On this eve of Thanksgiving, lets all be thankful that our government is being proactive in its attempts to navigate the financial storm.  As always, we will come out of this stronger, and hopefully wiser.  Hold on to your seat.  Don’t get too high, and don’t get too low.  Keep thinking like a buyer, and Happy Thanksgiving.

For more information on the good news, click here for more from the Wall Street Journal, and go lock some rates if you are floating!

Sometimes real estate agents actually have time to look at real estate for themselves.  It’s true.  Believe it or not.  We just closed our 20th transaction of 2008 last week, and we had a day to exhale.  So what did we do with our couple hours of solace?  Lesley and I perused rental property, of course.  And why not?  Rates are pushing towards 5.5%.  Inventory is still high at over 12 months’ worth.  The winter months are upon us when everyone is expecting slower activity.  I honestly believe that lower offers will be considered during this time because the likely alternative for sellers is waiting until the spring when the wave of buyers wakes up and hops in the car with agents.  I expect the Spring to be a different market for the better in our industry, which leaves us in a deep valley through the cold winter.

Do we need a second home?  Do we need a rental property?  Of course not.  Real estate investing takes a lot more time than traditional investment paths.  However, when you consider dumping your money in the topsy turvy stock market or hiding it in a low yielding money market account, real estate investing looks more and more favorable.  Right this minute you can buy with as little as 5% down and cash flow a property on a rental.  Are we all crazy for not considering it?   The valley won’t last.

So, what does a good rental property look like?  How do you find them?  Thanks to a recent article in AJC from John Adams.  Here’s an exceprt that gives a great roadmap:

Prime candidates for a rental program would be houses that were less than 10 years old and have recently been through the foreclosure process. Because of the slow-selling market and the bad loan on the house, it now is being marketed as a “bank-owned” home. Most lenders require that buyers accept their foreclosures in “as-is” condition, and that the lender not be required to disclose any defects or problem areas. Because these preconditions are unacceptable to today’s picky retail buyers, the banks have been forced to lower their prices on many of these houses.

Today’s ideal rental house would have three bedrooms and two baths, would be purchased for well under $100,000, would require less than $10,000 in repairs, and would be located in a neighborhood of primarily owner-occupants. Proximity to a major employer would be icing on the cake. Such a house could be purchased and repaired, then placed in service with rent approaching $1,000 per month. Then the investor could recoup his total investment in a new fixed-rate loan, and still end up with a monthly profit of $200 or more.

Unfortunately, recent Fannie Mae restrictions have prevented the majority of experienced investors from participating in this activity. These restrictions have slowed the absorption of foreclosed homes in the Atlanta residential market. Specifically, no applicant for a rental property mortgage can be approved if the applicant already shows four or more home loans on his credit report.

The moral of the story?  Don’t have more than 3 rental properties.  Just kidding.  The moral of the story is make sure you purchase a home that cash flows.  There are plenty of avenues for consumers to find these opportunities.  A great place to start is our Home Page > Find a Home > Search.  For a more detailed search, Lesley or myself would be happy to set you up using one of our tools called “Client Gateway.”  Client Gateway is an automated search using criteria you determine where the lastest listings that meet the need are automatically emailed to you.  We find this tool to be incredibly helpful for clients who are specific in their search and need to drill down a little bit more than the typical web searches.

Don’t be afraid to at least look at what’s out there.  I can assure you that the real estate investor community is looking, and that includes these real estate agents.  Happy hunting, and let us know how we can help.

The Peters Company is very fortunate to have outstanding relationships with some of the nation’s most reputable lenders, with no strings attached I might add.  One of the benefits of these type relationships is great updates on the market and relevant consumer information.  I must take this opportunity to say that we, The Peters Company, do not gain financially from recommending anyone from lenders to inspectors, vendors, etc.  We gain only piece of mind when we know that our clients are receiving exceptional service from lenders and vendors we know and trust.

Those of us who have bought a home before know that trying to decide on a mortgage lender can be a stressful process that can leave you wondering whether or not you are getting the best “deal” possible.  I find the need to negotiate everything.  It drives Lesley crazy, but it’s the truth.  I love to negotiate.  I always looked at the selection of my mortgage lender to be an opportunity for me to exercise my negotiation skills.  I love this article by our friends at Countrywide Home Loans because it really helps you understand what you should be looking for and what is just “smoke and mirrors” sales jargon.  Today I feel a little differently about selecting a mortgage lender.  I think first and foremost that it’s important to find a lender that you are comfortable with, someone who you like and trust.  Much like the real estate buying and selling process, the lending process has its fare share of ups and downs.  You want to make sure that the lender you select is there for you and someone that gives you honest, well founded guidance.

From Countrywide Home Loans, courtesy of Scott Meldrum, Robert Gilbreath and Kim Nehiley:

Many, probably most, consumers will talk with more than one mortgage lender when applying for a home loan.  They will want to get the “lowest” rate, or the “best” terms, or something along these lines.  If consumers are going to be shopping an industry that they are not familiar with, I believe it becomes our job to make sure that they are an “informed consumer”.  So let’s look briefly out how to correctly shop for a mortgage.

If It Seems Too Good To Be True, It Probably Is…

Yep, no big surprise there.  Most realtors and lenders have heard a client say, “Well, Mortgage Company X said they can do my loan at a 5% interest rate, no money down, and they’ll pay all my closing costs!”  Here’s the deal, while some mortgage companies may portfolio very specific types of loans for very specific types of borrowers, allowing them to offer better terms or rates, generally speaking, all lenders get their money from the same places.  Thus, all lenders, on most loans, should be closely aligned in terms of interest rate and programs offered.  So, if it seems too good to be true, you’d better start finding out where the hook is.

Make Accurate Comparisons…

Lender fees to Lender fees.  That’s it. Don’t compare one lender’s bottom line to another lender’s bottom line.  Lenders are responsible for quoting estimations on third-party fees, but they DO NOT control them.  And some might under-quote those fees to make their bottom line seem smaller.  Always and only, lender fees to lender fees.   And no matter what a lender says their APR is, get a Good Faith Estimate from them to verify fees.

Rates Change Daily, Sometimes Hourly…

Recognize that mortgages are instruments of investment, like stocks, and therefore change their accompanying interest rate on a daily, sometimes hourly, basis.  It is completely pointless to get a quote from Lender A on Tuesday and then get a quote from Lender B on Friday. This would not be an accurate comparison and you’ll just end up driving yourself crazy trying to figure it out!  If you’re going get quotes, figure out what lenders you want to talk to, sit down on the phone, and call them one after another, receiving not just an interest rate quote, but a full list of the terms that go with it (discount points, prepayment penalties, etc.).  For example, make sure that one comparison isn’t using higher fees to get a lower rate, or conversely, using a higher rate to quote lower fees.

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!

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.

It’s the time of the year, Property Tax Time!  Most of us have already paid property taxes either ourselves or our mortgage company has paid our taxes for us.  Whichever camp you fall into, you should pay attention to these tips to ensure that your i’s are dotted and your t’s are crossed.

If escrowed with a mortgage company:

1. Check your property’s tax website to see if your taxes have been paid, especially if you did not get the bill

2. Look at your most recent mortgage statements to see if the tax payments have been deducted from your excrow account

3. Confirm the due dates for your city and county taxes (sidenote: remember that the due dates for Fulton and City of Atlanta have been extended for 2008 because the bills were issued late)

4. Contact your lender if the bills are late or about to be late (sidenote: check with the servicing department)

5. Confirm that the lender will cover any late fees if the bill is paid after the due date (sidenote: you shouldn’t be responsible for their goof)

If not escrowed:

1. Confirm the due dates for your city and county

2. Pay online if possible to avoid late charges

3. Send payments early enough to meet deadlines

4. Always include a copy of the bill with payment and put the tax parcel number on your check

If you bought or sold this year before the tax bill came out:

1. Seller should forward the bill to the buyer as soon as possible so buyer will pay on time

2. Although buyer will be paying the bill, seller’s name is on it

3. Buyer should keep a copy and forward the bill to the new lender if escrowed - otherwise buyer should pay on time

4. Buyer and seller may need to adjust tax prorations based on the actual bill.

We frequently have homeowners asking us, “What can I expect to get if I add on a …”  Thanks to the Cost vs. Value Report 2007, we have some concrete numbers to share with you.  I find these incredibly interesting especially when you consider that a deck gives you the best “bang for your buck” from the items on the list.  We are currently evaluating bids to install a new deck on our home, and we never realized it would return this kind of money.  As is always the case, you should first think about doing a renovation because it increases your enjoyment of your home, but if you are like us, you are always considering and evaluating projects.  Also, keep in mind that there are some fantastic deals on Home Equity Lines of Credit through today’s lenders.  Hope the information helps, and if there are any other questions you might have as it relates to return on investment or real estate in general, just give us a call or shoot us an email!

Are you thinking about renovating your kitchen?  We are!  Just noticed today that the Junior League of Atlanta is having a Tour of Kitchens this weekend, Saturday the 29th and Sunday the 30th.  Fourteen kitchens are open and on the tour.  During the event, you can also get tips on cooking and flower arranging from Atlanta experts.  For more information, click here.