Lesley and Andy have some great new listings coming on the market. Stay tuned!

A recent survey by The Mortgage Bankers Association stated that 10% of mortgages on one- to four-family homes were at least a month overdue or in the midst of the foreclosure process during the third quarter of this year. That is up from 9.2% three months earlier and 7.3% a year ago.  Wow!  Inventory is already high, and an increase in foreclosures does not smell very good.  So, what’s a county to do to boost the real estate industry, the lifeblood of the economy?  How ’bout a bailout?  The Treasury Department is in the beginning stages of a deal that would help reduce interest rates for new loans to purchase a home.  The number that’s being thrown around is roughly 4.5%.  The hope is that this new low rate will boost sales, help stunt the slipping national home prices, and enable homeowners to “buy up” and afford larger loans.

So, how good is a 4.5% rate?  Check out the 30-Year FRM graph representing rates from 1971 to present day at www.mortgage-x.com/trends.htm just to see how good it can get and just as important, how good it is currently!  If you haven’t noticed rates right now, we are hovering just above 5%, which is still historically low even without the Treasury Department’s proposal.  Love the mortgage-x.com site, by the way.

I have previously talked about the refinancing opportunity out there right now.  I would highly recommend you talking to a lender if you are in above 6% on a fixed OR adjustable rate mortgage AND plan to stay in your current home for at least the next 3 years.  Just how much do I believe that?  I am closing on the 22nd of December on my own personal refinance!  It’s important to note that the proposed Treasury Department plan will most likely not apply to those applying for a refinance.  This new deal is exclusively for new home purchases, and if it is successful it should inject some new life into the national real estate picture.

I read a lot of blogs.  I get a lot of new updates.  I sift through a lot of stuff to bring you what I hope to be valuable content.  I found a great update on the foreclosure situation including statistics suggesting foreclosures are up 25% from October 2007 but only up 5% from September of this year.  Is the carnage beginning to slow down?  Are the government programs starting to help?

Here’s a great video from The Wall Street Journal and Delores Conroy, a real estate economist from the University of Southern California.

http://online.wsj.com/video/programs-helping-slow-foreclosures/E822DF82-B800-4BEF-9BCD-01144D141D80.html

Lesley and I are fortunate to go on at least two listing appointments every week.  So, we must get a lot of listings, right?  Well, we certainly are successful securing listings, but we don’t want every listing.  You see, many desperate real estate agents take listings regardless of the situation because they know in their heart of hearts that even if the listing can’t and won’t be sold that they can use the listing to promote themself.  It’s a terrible reality, but it is just that, a reality.  When we all agree to agree to take a listing, Lesley and I take it because we genuinely believe we can sell it.  We aren’t desperate.  We aren’t in the business of listing homes.  We are in the business of selling homes.  If we can’t sell your home, it bothers us.  We don’t sleep well at night.  You aren’t happy.  You don’t use us again.  You don’t refer us to your friends and family.  We are sad, and eventually we become desperate.

So, what would cause us to not take a listing?

1 - Price - it’s hard to sell a home when it’s priced so high that it doesn’t attract buyers.  We are very realistic on price, and we play to the percentages, not to the possibilities.  This has helped us achieve an average days on market much lower (30.4 days) than the average Atlanta real estate agent.  We tell everyone that we meet with for a listing presentation that there will definitely be another agent that will come along and price their home higher than we would.  That will always be the case.  We completely understand when someone feels like they must “try” to sell their home at a higher price with another agent.  Unfortunately, the market stats suggest we have far more “tryers” as opposed to sellers considering 67% of listings fail due to being overpriced (ChartMaster 3rd Qtr Market Stats). 

2 - Condition - in this buyers’ market, you have to be competitively priced and you have to be the “prettiest.”  If a buyer sees a defect in your home, they don’t discount in hundreds of dollars.  They discount in thousands of dollars.  It’s hard to build value to a buyer when there are glaring defects that a seller is not willing to repair.  With high inventory, it is easy for a buyer to simply move on to the next listing without batting an eye.  It’s very unlikely that we will walk into the absolute perfect home that needs nothing done in order to get it ready for the market.  Part of our listing consultation includes a walk through of a home to make some clear cut recommendations on what exactly needs to be done in order to maximize your opportunity to sell in the least amount of time for the most amount of money.

3 - Financial - sometimes it is just not in the best interest of the seller to sell.  If someone is severely upside down on their home, we don’t want to take that listing unless the seller absolutely has to sell.  If they have to sell and it isn’t pretty, we coach people to explore short sell options with their lender to avoid foreclosure.  We tell more people not to sell than we do ask for their listing, and that’s the honest to goodness truth.  The rental market is booming right now as more and more people realize that renting their property gives them an opportunity to fulfill their obligation to their lender and hold on for a better day.  We want that better day for everyone if it’s in their best interest.

We know that selling a home can be a very stressful experience or a very enjoyable experience.  We are the difference maker.  We are not desperate.  We do not do desperate things.  We follow a time tested model that allows us to sleep at night.  We study real market statistics that give us important clues and direction when listing and buying property.  Continue to think like a buyer, and if you are looking for an agent that will give you the straight talk on selling in this market, look no further.

Keller Williams produces and distributes very useful information.  The video included below is a nice review of the national market for the month of October including statistics and in depth analysis.  I encourage you to take a look if you are interested in the macro view of the real estate market.  Keep in mind that our goal is to ALWAYS keep you up to date with the micro view in the metro Atlanta area.  You will see local statistics scattered between here, our mailings, our email updates, our Facebook update group, and our Active Rain blog.

Perhaps one of the greatest statistics:  If interest rates go up 1% that represents a 10% increase in the purchase price.  Interest rates are incredibly low and fell again last week.  Don’t wait too long to take advantage of this prime opportunity to buy your first home, your first investment property, or move up.

No matter your political views, the resolution of the election means good things for our economic condition.  The whole financial world, including the real estate market, can finally take a deep breathe and stop saying, “Let’s wait till after the election.”  That day has come, and I think everyone is looking for some stability.  I believe either candidate would have provided this stability, but the most important thing is action and quickly.  The President is no savior.  In fact, it’s the advisors that President elect Obama appoints that we should probably be taking a closer look at when he announces them. 

The election elated some and dissappointed others, but no one can discount the fact that there is energy after the election.  Perhaps that’s all we needed.  As mentioned here before, I feel like the Atlanta real estate market is already feeling the bottom and well positioned to recover.  I feel confident in proclaiming that it can only get better from here.  Gas prices have come back to earth.  Interest rates are caving.  In fact, now they are back under 6%.  Inventory is coming down, and prices are stabilizing.  If you can’t see the neon “Buy Now” sign, then you might want to schedule an appointment with your optometrist.

President elect Obama’s policies will build on plans already set in motion to improve our industry.  The bailout is helping to get more money moving in and out of the real estate market with increased liquidity amongst lending institutions.  The Fed has cut the rate helping make money less expensive to borrow.  This will help us attract more buyers in the form of lower borrowing and mortgage rates as the dust continues to settle, and the bailout will help generate increased competition in the market from lenders.  We still need further protection from mounting foreclosures in the real estate market, and I expect we’ll see more money moving in that direction in the form of loans and guarantees to the larger institutional lenders.  It’s not just the banks that need help though.  What about the homeowners left holding the bag forced to file for bankruptcy due to adjusting adjustable rate mortgages and risky creative financing during the boom years?  It would be real easy to say, “Sorry,” and continue the tsunami of foreclosures.  We will see more programs designed to help homeowners refinance on the cheap to avoid foreclosure and save their homes.  The new President has to address the lender and consumer side of the ball if he wants to fix this housing situation, and I think he will out of neccessity. 

 So, no matter your political views, we all need to take advantage of this new energy, and take advantage of our opportunities because it doesn’t take incredibly long for a valley to be a peak.  This economy will be back.  This housing market will be back.  As always, we will be here finding deals for buyers and securing the best for our sellers, no matter the market and no matter the President.

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.

Now, more than ever, you need to be concerned with your credit score.  You need to be concerned with living within your means and not relying upon heavy credit card debt.  As the lending requirements continue to tighten, it’s imperative that you know your credit score.  If your score is lower than you want and/or need to secure financing, don’t panic!  There are a lot of things you can do to ensure that your score will remain steady or rise.

Here are some tips on raising your credit score from the folks at MyFico.com.

1 - Pay Your Bills on Time - this one sounds pretty easy, but nowadays with online checking, just make sure that those electronic payments are actually making their way to their proper destinations.

2 - Be Aware that Paying Off a Collection Will NOT Remove It from Your Credit Profile - that payoff will remain for 7 years.

3 - Keep Balances Low on Credit Cards and Other Revolving Debts - if you have to charge, cap it at 35% of your available credit limit.

4 - Don’t Close Unused Accounts as a Short Term Strategy - this shortens the length of your credit history, and believe it or not, it actually hurts your score.

5 - If You Use Credit Cards, Manage Them Responsibly - You have to make timely payments for credit cards to help you.  Otherwise, you are burying yourself with mounting debt, and your credit score is paying for it.

6 - Apply for and Open New Accounts Only as Needed - Credit scores are a product of a long term track record of money management.  Opening accounts typically won’t work in the timeframe you are looking for.

7 - If You Have Missed Payments on Your Current Credit, Get Current and Stay Current - Ignorance is not bliss.  One late payment may not be a show stopper, but the compounding effect of missing several payments in a row will drop the curtain.

8 - Pay Off Your Debt Rather than Moving It Around - Paying down your revolving credit is the most effective way to positively affect your score.  Owing the same amount with fewer accounts looks better as well.

9 - Note: It’s Okay to Request and Check Your Credit Report - It’s a common myth that checking your credit will affect your score negatively.  The key is that you have to check your credit through a credit reporting agency or through an organization authorized to provide credit reports to consumers.

Next to your social security number, your credit score is the next most important number for you to protect.  Sometimes even when you are diligent in protecting your credit, bad things still happen.  We have had one incident this year already where a client did not realize that someone had stolen his identity and run up massive debt in his name.  It’s everywhere, and it is quite a disappointment when it occurs at a time when you are about to make one of the biggest purchases of your life - a home.

A little over a month ago, we helped the Barr’s sell their Brookhaven home.  With twins, they had slightly outgrown their very first home together.  They needed more space and we found it in a great country club community in Suwanee!  Congratulations, Doug and Beth on your new home in Laurel Springs!  Thank you so much for giving us the opportunity to represent you on both selling and buying.  We can’t wait to see your new home once you get settled! 

Lesley and Andy

Lesley and I are not shy about the merits of doing business with a company like Keller Williams Realty.  It’s nice to know that the consumers at large feel the same way we do.  We are proud to be a part of the team recognized as the Consumer’s Choice for metro Atlanta.  We are attaching the latest press release announcing the award.  If you are buying or selling, let us show you what all the buzz is about.

Keller Williams Realty, Atlanta, GA Named the 2008 Consumers’ Choice Award in the
Category of Residential Realtors

For Immediate Release, Atlanta, GA – Atlanta offices of Keller Williams Realty have been named the 2008 recipient in Residential Real Estate for the Consumers’ Choice Award, a division of Market Data Systems, Inc. In Atlanta, the Consumers’ Choice Award is becoming the standard of trust upon which clients decide their choice for excellence.

 
Award recipients were identified through a comprehensive and objective survey conducted in May 2008 by Survey Sampling International (SSI). SSI is the world’s largest statistical sampling organization dedicated to survey research and serves over 1600 clients globally. This is the ninth year that the award has been given and Keller Williams Realty is the only company honored in this category for 2008.

 
Shaun Rawls, Operating Partner and Owner/Broker of six of the Atlanta based offices noted: “We are thrilled to be recognized for an award that models our belief system that customers always come first. To be chosen by the people we serve every day is what we strive for. When you operate as a Real Estate Professional who aims to create clients for life, there is no greater honor than being recognized for just that.”

 
Jeri Moran, General Manager, Keller Williams Realty, The Rawls Group, said: “Consumers today have many choices when selecting a Real Estate Professional. In the market we are in, trust, knowledge and good old fashion customer service is paramount and defines value. We believe this award honors our agents for these things and we are so proud of the work they have done.”

In the last five years, Keller Williams is the only Real Estate office in the Atlanta area to increase market share every year. The Southeast Region of Keller Williams Realty opened its first office in 1999 and has grown to the largest region in the company.

Press Contacts: Jeri Moran/General Manager: 404-531-3275