As I’ve mentioned before, the only way to tell if we are in a bottom is after we have ascended out of it (See diagram above on timing the market).  The supply is still outweighing the demand unfortunately.  Having said and seen all that, there’s certainly a case to be made here for improvement. 

Some are going to say that the rising tide of interest rates over the last few weeks is going to stymie any chance at a housing recovery (see LA Times article).  I can’t speak for everyone, but we are active in virtually all price ranges and we are active in the market every day.  I’ve recently fielded more than a couple phone calls  from home buyers fearing they have missed their opportunity.  Worse yet, they are afraid that if they wait further they may miss another wave of opportunities at sub-6% interest rates.  Wow!  Buyers are starting to cry about high 5% interest rates versus the 4.5-4.75% rates around the first of the year.  Fear is a powerful motivator.  It feels good to say that buyer activity is back in business.  The lower price ranges are leading the charge thanks to first time home buyer tax credits, rising levels of distressed inventory, and the fear as mentioned before (See 1Q 2009 Number Sold: by Price Range diagram below).  The results of the savage buyer activity under $200,000 should have a trickle “up” effect on the other price ranges as homeowners become displaced.  Another good sign is that multiple offer situations are back.  Whereas the fall and spring market meant the buyer was in charge, nowadays the seller has a larger pool of buyers and a better bargaining position.  I expect that trend to continue if at least for the short run.  So, are we in the bottom?  I guess your buying habits and the buying habits of those around you will tell.  It’s only a buyer’s market if you’re buying, and we know in real estate that things can’t stay depressed forever.  I think we can all agree that this is a monumental opportunity to buy real estate.  If we miss the bottom point, we are still going to be buying at a historically low water mark. 

If you have been wondering when is the right time to invest in real estate, buy your first home, or move up to that dream home you have always wanted, we can help.  The Peters Company is skilled in all price ranges, and we represent both buyers and sellers.  We have the manpower, the knowhow, and the tools neccessary to help you make the best decisions possible.  It would be our pleasure to talk with you in a no cost and no risk consultation.  You can contact us at andy@thepeterscompany.com or find more information about us at www.thepeterscompany.com.  In addition, we are proud to be one of the top rated residential real estate teams in the metro Atlanta area on Kudzu.com, where over 40 of our past clients have rated and reviewed our service.

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!

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.

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.

Everyone is looking for a deal.  Unfortunately that deal sometimes needs some sweat and nails to realize its full potential.  So, how do you do it?  In the past most people bought the home and then financed the renovations.  The problem with that is that it’s typically a construction loan or a general personal loan, which can carry a larger interest rate.  What if you could buy a house and finance the repairs/renovations on the front end before you even start?  You can, and it’s called a 203(k) loan.  The loan follows the common FHA lending guidelines, which allows you to put down as little as 3.5% down.  I think it’s important to start from the source when trying to explain the loan and its benefits.  FHA is a division of HUD so click here for HUD’s specific information on the loan.  Standard FHA loan limits apply at $346,250, which is an increase over last year.  Rates typically for this particular loan are only moderately higher (approximately .50% higher).  Currently FHA purchase loans are around 5% so this rehab loan would fall somewhere in the 5.5% range.  Although higher than a conventional loan in the high 4% range, this is still an amazingly low interest rate, historically speaking.

We recently attended a seminar about the 203(k) sponsored by our friends at Countrywide Home Loans, and they provided us with some great Q & A on the loan.  Countrywide is one of the only lenders utilizing this loan currently.  Here is some great information from Countrywide:

Top 10 203K Questions

1.       What is the difference between a regular 203K and a streamline 203K?

• Streamline – between 5K and 35K with no structural changes to the property
• Regular – greater than 35K and / or structural changes to the property

 2.       Is the borrower allowed to perform the work to the home?

·         Yes but very difficult to get approved.

3.       Is the house appraised “As is” or with work completed?

• The house is appraised taking repairs / rehab into consideration of the value.

 4.       How long do you have to complete the work?

• Up to 6 months.

 5.       It the rate higher on a 203K than a regular FHA loan?

• Yes.  Anywhere from .5% to 1% higher in rates.

 6.       Is it harder to qualify for a 203K than a regular FHA loan?

• Yes. 

 7.       Are the 203K limited to single family residences?

• No.  The program can be used for owner occupied 1 to 4 unit dwellings and condos.

 8.      How does the contractor get paid?

• The contractor gets paid through Countrywide’s escrow department.  They are allowed 2 to 5 draws depending on the cost of the rehab.

 9.       What type of out-of-pocket expenses should the buyer be prepared to pay?

• There is a home inspection or an FHA consultant fee to determine the scope of the work.  The cost varies from $300 to $1,000. 

 10.  How long does it take to close and receive the first draw?

• We need 60 days to close and it will take up to two weeks after closing to receive the first draw

With mounting foreclosures, the savy homebuyer can buy lower than low, rehab a house, and realize some major equity all within a single loan.  We would be happy to help you find that diamond in the rough so you too could take advantage of the market and all the possibilities it presents.  If you have additional questions about the 203(k) loan or any other loans, we encourage you to talk with Scott Meldrum at Countrywide Home Loans.  Scott can be reached at scott_meldrum@countrywide.com.

Are you looking for timely information that is relevant to the real estate market?  How about accurate information and statistics on the metro Atlanta market specifically?   How about up to date mortgage rates from reputable lenders?  The Peters Company has a bi-weekly email update called the Metro Atlanta Real Estate Update.  Past topics include Buckhead foreclosure searches, Brookhaven foreclosure searches, Buckhead best buy lists, legal tips from Atlanta’s top real estate attorneys, intown Atlanta home insurance advice from local property/casualty agents, Atlanta first time homebuyer question and answer, education on Buckhead short sales, Brookhaven short sales, and Decatur short sales, creative Atlanta financing, Atlanta real estate investing, and first time home buyer tax credits. We are adding subscribers to the Metro Atlanta Real Estate Update every week, and we would love to add you!  Simply send us a quick email, and we will be happy to add you.  This Atlanta real estate market presents such an amazing opportunity for you.  Make sure you are staying on top of the latest, and if you don’t have enough time to do that, let us help!  You won’t miss a beat with the Metro Atlanta Real Estate Update.

As is customary, The Peters Company brings you this monthly market snapshot for the metro Atlanta area.  We believe in market statistics.  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 detached home market is included here. 

Here are a couple of observations:

• After comparing these numbers to the January MMO, total inventory has jumped from 9.2 months to 12.7 months.  This trend is not too surprising given that February is really the first full month back from the holiday season.  Inventory is up in every price point from last month.
• Foreclosures are up to nearly 30% 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 $15,000 from last month.  This is not all a bad thing.  I believe that sellers are becoming a lot more realistic on price, which only helps us get out of this mess faster.
• The percentage of failed listings (listings that did not sell) held steady at 66.9% when compared to last month.  Here’s some good news.  Now, let’s just get that percentage to come down a little.  The only way out of this is more and more buyers buying on the heels of more realistic pricing.

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.

According to the latest report by Broker Metrics, our very own Keller Williams Peachtree Road office in Brookhaven is #3 in market share within the metro Atlanta area.  Our office is home to some of the brightest and best talent within metro Atlanta.  The Peters Company is proud to be a part of the successful team at Keller Williams Peachtree Road.  We are located off of Peachtree Road just south of North Druid Hills at the intersection of Colonial.  We are the flagship Brookhaven real estate office, and we know the Brookhaven market better than anyone.  The location of our office is also well positioned to service the other great areas of Atlanta including Sandy Springs, Buckhead, Decatur, Downtown, and the northern suburbs like Alpharetta, Roswell, Norcross, and Duluth are a quick drive north.  If you or anyone you know is interested in the real estate profession or interested in learning more about what makes our office so successful, we would love to share with you.  Joining the real estate profession in a “valley” real estate market is a wise move.  You will be well positioned when the Atlanta real estate market roars back.  Feel free to contact us at any time.  We’d love to talk “shop.”

On February 13th, President Obama signed the Stimulus Bill into law.  Is this what we’ve all been waiting for? Well, as a real estate agent, if falls a little short of what I was hoping for, but there are some clear benefits to you in the new plan, and I felt like it would be helpful to share. Thanks to Michael Pemberton, a Certified Financial Planner, who helped us navigate the bill. Here’s what he thinks is important to note:

• AMT: There is a $70 billion provision to keep the alternative minimum tax from slamming about 24 million taxpayers.

• Car Buyers: Anyone who buys a new car in 2009 gets to deduct the sales tax. To qualify, buyer must make less than $125,000 individually or $250,000 jointly.

• Home Buyer Tax Credit: First-time homebuyers who purchase this calendar year get an $8,000 tax credit which does not have to be repaid like a similar measure last year. This phases out for people making more than $75,000 individually or $150,000 jointly. “First-time homebuyer” is defined as someone who has not owned a home for the past three years.

• Income Tax Credit: Anyone making $75,000 individually or $150,000 as a family will get refundable tax credit up to $400 per person or $800 per family.

• Paying for College Tax Credits: Individuals making less than $80,000 or families making less than $160,000 can get up to $2,500 in tax credits for college tuition. 40 percent ($1,000) of the credit is refundable. Cost: $13.9 billion over 10 years.

Michael Pemberton is with Russell and Associates. 1050 Crown Pointe Parkway, Suite 1000, Atlanta, GA 30338, mcpemberton2000@yahoo.com, Click the link below to check out our reviews on Kudzu.com! http://www.kudzu.com/merchant/reviews/17586067.html. 

The emails have been racing in with everyone wanting to contribute content.  Here’s a great Q&A session provided by Scott Meldrum at Countrywide Home Loans which is a great resource for all your real estate questions:

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