Existing home prices up 2.4% in Atlanta

Andrea Cueny, REALTOR

Submitted by Andrea Cueny, REALTOR®

The median price for existing homes sold in metro Atlanta grew 2.4 percent in November compared to the year before, according to data released Tuesday by the National Association of Realtors.

The median price in the metro area was up to $129,300 from 126,300 in November 2008, NAR said. Sales volume was up 33 percent over November 2008, one of the deepest months in the recession.

The increase in price is the first since 2008, according to the data.

Nationally, existing home sales 7.4 percent last month, the NAR said, as first-time homebuyers closed deals before the Nov. 30 expiration of the federal tax credit, which was recently extended and expanded. The pace is 44.1 percent higher than November 2008.

“This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead,” Lawrence Yun, NAR chief economist, said in a statement. “We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. In all, 4.4 million households are expected to claim the tax credit before it expires and balance should be restored to the housing sector with inventories continuing to decline.”

Please click here for the entire story on the Atlanta Business Chronicle about Atlanta home prices

Atlanta homes for sale on iPhones and Blackberry phones

Finding homes for sale in Atlanta just got easier. Using the latest mobile phone app from Atlanta Fine Homes Sotheby’s International Realty, you can search for homes for sale anywhere in Atlanta on a phone that offers wireless internet service or GPS capabilities. 

Text AFH to 87778 or click here to download the free application to your iPhone or Blackberry (primarily).

This means now you can search from your car, a coffee shop, and even as a passenger while in driving.  Simply download the free application for your iPhone or Blackberry and within a minute or two, a GPS map will show your location and will list all the available homes in that specific area.  As your location changes, so do the available homes.   

You can view multiple pictures, find out prices, square footage, interior and exterior features, number of bedrooms and baths, etc.  You can even press a “Call to See” button and, while you’re being connected with the listing agent, the agent is simultaneously being sent an email with the information about the listing about which you are calling.  All this information is available to you instantly, any time of day, with the touch of a button on your SmartPhone.

Atlanta Fine Homes Sotheby’s International Realty has the exclusive offering for this hand-held search for homes for sale in Atlanta.  Primarily designed for Blackberry and iPhones, data is pulled directly from FMLS.  Our downloadable app will find properties using a GPS-enabled phone or via the wireless connection on any phone.

Visit our website at  www.atlantafinehomes.com, and download the mobile real estate application to use this free and valuable service. 

Or you can simply text AFH to 87778 to get started immediately. 

Let us know what you think.  Atlanta Fine Homes Sotheby’s International Realty is interested in finding out how you are using this great new service and how it is making your home search easier!     

If you have any questions, please give us a call at 404.835.9600.

Which house to buy?

We asked the REALTORS® at Atlanta Fine Homes Sotheby’s International Realty their opinion on the following scenario regarding which house the buyer should buy.

Question: You are working with clients who are going to take advantage of the move up buyer tax credit. After searching a couple of parts of town, they have narrowed their search to three choices.

It’s a close call…which home do you think they should purchase?

47% - An okay home in an okay neighborhood that is in a GREAT school district. The home is at the bottom of their price range and suits their needs.

44% – A good home in a GREAT neighborhood in an ideal school district. The lot is the first one in the subdivision and the brick-walled backyard is on a very busy main road. The home is at the top of their price point. For the neighborhood, it’s considered to be a very good deal.

8% – A GREAT home in a decent neighborhood, but the school system isn’t the best. The home suits their needs in every way, and is in the top of their price point. The home is one of the more expensive homes in the subdivision.

Atlanta home prices drop in third quarter

Natalie Ransom, REALTOR and Founding Partner

Sumbitted by Natalie Ransom, REALTOR®, Atlanta Fine Homes Sotheby’s International Realty.  Article taken from the Atlanta Business Chronicle. Please click here to see it in its entirety.

Median home prices in the metro Atlanta area fell 14.5 percent in the third quarter, according to data published Tuesday by the National Association of Realtors.

The NAR report said the median price of a single-family home in the metro area was $129,400 in the third quarter, compared with $151,300 in the third quarter of 2008. The price was $121,400 in the second quarter.

The median price in the area was $149,500 for 2008, $172,000 for 2007 and $171,000 for 2006.

 The median price is where half sold for more and half sold for less.

During the third quarter, 123 out of 153 metropolitan statistical areas reported lower median existing single-family home prices in comparison with the third quarter of 2008, while 30 areas had price gains.

The national median existing single-family price was $177,900, which is 11.2 percent below the third quarter of 2008. Distressed sales — foreclosures and short sales — accounted for 30 percent of transactions in the third quarter, which continued to weigh down median home prices because they sell at a discount relative to traditional homes.

6 Homebuyer Tips for a Great Deal in Atlanta, GA

Erika Eaton, REALTOR®

This post is from Erika Eaton’s blog, SearchingAtlanta.com.  Please click here to see the full story on Homebuyer Tips for a Great Deal.

There are some bargains in the North Metro Atlanta and Buckhead real estate markets. The following tips will give you the confidence to take advantage of the Atlanta homes sale:

1. Research comparable sales. In preparing to make an offer, your REALTOR® should provide you a list of comparable properties that have sold in the neighborhood. During this hypersensitive Atlanta real estate market, I wouldn’t bother going back more than 12 months. It’s these neighborhood “solds”, the more recent the better, that will give you the best idea of a home’s true value.Try to have a basis for your offer. There has been a lot of publicity about the drop in real estate values, but keep in mind, most Atlanta, GA homes have already been reduced in price. If your offer is completely arbitrary, it will be hard for your agent to make effective arguments during the negotiations.
2. Research the seller. A good REALTOR® will help you get information from the listing agent. You should be researching the potential home as if you work for the CIA. Don’t be afraid to talk with the neighbors. Try to find out their motivation for selling, their timeframe, their current mortgage(s), how much they paid, what year they bought the house, how much they spent on improvements, do they need to sell before they move, etc…Don’t let a contract fall apart due to minor issues. If your offering a lower price, try to cater the rest of the contract to the seller’s needs. A quick closing date accompanied by a fat earnest money check can often work wonders on the price.
3. The standard discount is a myth. Some buyers are very intent on making a standard 5 or 10% discount on their offers. But home prices can vary tremendously and I’ve seen all kinds of discounts and premiums throughout Buckhead. For instance, I sold my personal residence, during this down market, for almost 100% of my asking price. I received multiple offers on our home through innovative marketing, proper staging, curb appeal and a realistic price. I know of another Buckhead home, currently on the market, that is priced for more than double its actual market value. I feel sorry for the seller, because he will ultimately get far less money for his home with this strategy. Take the time to research a property and don’t make haphazard, “standard” offers. 
4. Contact an experienced mortgage broker. Before you make any offers, get pre-qualified for a mortgage. The mortgage broker can do this in a couple of days, if not, find another mortgage broker. If she can’t provide you a simple pre-qualification letter, then the closing day could be very scary. The letter is important for two reasons:First, it will give you a maximum price range. You don’t want to waste a lot of time looking at homes that you ultimately can’t afford; talk about a discouraging experience.Second, an offer accompanied by a pre-qualification letter will be taken more seriously. If you expect the sellers to bend on the price, then your offer needs to be serious and organized. If the sellers are going to take their home off the market, while it’s under contract, they need assurances that you’re not chasing a pipe dream.
5. Get automatic email updates. Every night, I look at the new listings and price changes for Buckhead, Brookhaven, Sandy Springs and Dunwoody. My clients learn about great properties very quickly. If you’re not working with an agent who is dedicated to market knowledge, or you want a backup plan, then sign-up for automatic email updates. Obviously, I’m partial to my website and it’s automatic update feature, but there are many great services available on the Internet.When a North Atlanta home is listed below market value, which is not often, there are usually multiple offers. You want your offer to be first, accompanied with assurances of your ability to close.
6. Don’t be timid. Your market research and mortgage preparation should give you the courage to act quickly. The best priced homes won’t stay on the market for very long. Don’t let a great property slip away due to indecision. Your offer should have a due-diligence clause with a “no exceptions” cancellation period. This will give you recourse if you have reservations about the home.

Hopefully, these tips will give you an edge over other buyers in the market. Make sure you do your research and work with a qualified Realtor. If you have any questions about making an offer, or would like to see some homes, please feel free to contact me.

I want to buy a house. What can I afford???

Ann Hopkins REALTOR

As a REALTOR® and not a mortgage banker, I thought it best to consult my friend and colleague at Brand Mortgage, Marilyn Cain, on this issue and below is what she says that one should consider in finding out how much you can afford.

“There is an easy way to calculate how much house you can afford. Mortgage lenders look at your Debt to Income (DTI) Ratios. There are 2 ratios you need to calculate:

1. Your Housing Expense Ratio. Your debt used in this ratio is the amount of your mortgage. This number is composed of:
Principal + Interest
Property Taxes
Homeowner’s Insurance
Mortgage Insurance (required on mortgages with less than 20% down payment)

2. The debt for your second ratio will be the amount of your mortgage, listed above, plus monthly payments of any debt outstanding. This would include debt such as car loans, student loans, bank loans and credit card minimum payments for revolving cards that you do not pay off every month. If an outstanding loan has less than 10 months balance remaining, it typically will not be counted in this amount.

Your income is your monthly income and must be quantifiable. In other words, if you received a one time gift from a relative or a one time bonus, the amount cannot be considered part of your income.

Conventional loans versus FHA loans

FHA loans have more lenient ratios than Conventional loans. Also, FHA loans are popular with first time home buyers because the down payment required is only 3.5%. The down payment can be in the form of a gift. Conventional loans require a 5% minimum down payment and must be your own funds.

Qualifying DTI Ratios:

FHA 31% for the 1st ratio or the Housing Expense Ratio
43% for the 2nd ratio
Conventional 28% for the 1st ratio
36% for the 2nd ratio

Having stated the qualifying ratios, let me say that individual cases can justify higher ratios. Let your mortgage banker work with you as you shop for a home to let you know how much home you can qualify for and which loan products will best suit you.”

Thanks Marilyn!  (Marilyn Cain, Mortgage Banker, Brand Mortgage, 770.822.2359, mmcain@brandmortgage.com)

Put some prep work into this pre qualification with your lender. It will save you time and will enable your REALTOR® to help you find homes within your budget.

I’d be happy to refer to a lender and help you find your first home.

Want more information? See my other blog post on “First Time Home Buying“

6 Things to know before you buy a Condo

Erika Eaton, REALTOR®

This post was written by Erika Eaton and originally published on her blog, SearchingInAtlanta.com. Please be sure to visit!

Condos offer a hassle-free lifestyle that owning a home just can’t provide. Depending on the services available, you can have everything from on-site security and concierge services to a swimming pool and health club. While there are many great benefits to condos, there are also some potential pitfalls. There are a lot of great deals out there, sometimes I feel like there is an Atlanta condos sale going on. Having worked with many condo buyers and sellers, and serving on a condo board myself, I’ve thought of 6 key things to investigate:

1. How much of the dues are allocated to a capital reserve account.
   Many buyers can be extremely focused on condo dues without scratching the surface and understanding how the dues are allocated. There are condo associations that take advantage of these buyers and play a condo dues shell game. Some associations keep their dues artificially low by not allocating any money for future capital projects and repairs. They purposely ignore future roof replacements, paint jobs and parking lot resurfacing and assess for all capital expenses. It won’t do you any good to have low monthly dues while constantly getting hit with surprise assessments.I think this is extremely irresponsible and unethical, but you’d be surprised how many associations have this attitude. You should request the current financial statements during your due diligence period; or before you even make an offer. You’ll be able to see if the condo board has been a responsible steward.
2. What percentage of the units can be rented.
   This can be important for two polar opposite reasons. You might want to rent your unit at some point or you want to make sure there won’t be a bunch of renters living in your complex. Usually the association will have a maximum percentage of units that can be rented, probably somewhere around 10%. The percentage has less to do with the board’s arbitrary tolerance for renters and more to do with the ability to get financing on individual units.If a certain percentage of condos are rentals, new purchasers will be unable to get conforming loans at the complex. Usually, when a borrower is trying to get financing, the condo association has to fill out a form called a “condo questionnaire”. Some of the questions can include, “what percentage of the units are rentals” or “does one owner own more than 10% of the units in the complex.” I expect, in this difficult financial climate, that lenders have become even bigger sticklers for this rule.The real estate slowdown, and the disproportionate drop in condo values, has caused a lot of bitterness and rethinking of the rental caps. For various reasons, many owners have to leave their units, but are unable to sell due to owing significantly more than the condo is worth. Unless you can write a check to make up the difference, an owner’s only options are waiting the market out or foreclosure. In order to “wait the market out”, an owner would need rental income to pay the mortgage. Community associations are faced with the difficult choice of deciding if their lifestyle and property values are better off with increased rentals or a bunch of foreclosures and the resulting fire sales.
3. What’s been going on for the last year.
   Condo associations are supposed to keep minutes from their board meetings. During your due diligence period, you should ask for copies of the last 12 months of minutes. If the association is objectively recording the minutes, the copies should help you smoke-out concerns, issues, problems and litigation.
4. How old is the building.
   Although the individual unit may have been gutted with new paint, floors, cabinets and fixtures; if the building is 75 years old, then the pipes, electrical and infastructure could be in need of a huge upgrade. For instance, if the plumbing is made out of galvanized steel (a common problem in older buildings), the pipes are probably starting to dissenegrate and they will need to be completely replaced. Ripping the building’s walls out to replace plumbing will be very expensive. If there is no money in the capital reserve fund, then you’ll be responsible for your share through an assessment. (see point #1)
5. How much parking is there for me and my guests.
   Space is always an issue, espeically in urban settings. Find out if there are assigned parking spaces and how much is allocated for guest parking. If there are only a few spaces, you’ll have parking problems, especially on the weekends. It can be little like finding a parking spot at Lenox Mall the week before Christmas. 
6. How many units are behind on their dues.
   In a normal market this probably isn’t a concern, but during this downturn, it should be investigated. When you request financial statements (see point #1), you’ll see how much is in accounts receivable. The following scenario is currently playing out all over Atlanta.The owner is behind on their mortgage payments, so they are probably even further behind on her condo dues. The association doesn’t have many options when it comes to collecting the dues, the only real weapon is a lien. Normally, when the unit is sold, all liens are paid and the association is made whole again. But in this market, the owner might not be able to sell because she owes more than it’s worth, so the unit eventually goes through foreclosure and the owner is evicted. During foreclosure all liens are wiped off the books, so the association is out all uncollected dues for that unit. The remaining owners will be stuck paying for the uncollected accounts receivable.

Good luck with your condo search. One of my specialities is Atlanta luxury condos, so please feel free to call me if you have any questions or would like to see a home.

First Time Home Buyer Info

Ann Hopkins REALTOR

Welcome to my blog for the First Time Home Buyer.   I will cover many topics to help you purchase your first home.

Getting Started….. Let’s start with the basics in financing your new home….

THE CREDIT SCORE. What is a credit score? A credit score is a number based on a borrower’s bill-paying history and debt profile that lenders use to determine the likelihood of certain credit behaviors, including whether you will pay on time. The lower the score, the higher the risk, and the higher the rate you will receive from the lender.

Whether you are buying your first home or are planning to take advantage of the current buyers’ market, in order to receive financing in today’s tight money market and receive the best rates, you must have as good of a credit score as possible.

Marilyn Cain, mortgage banker with BRAND Mortgage, mmcain@brandmortgage.com, explains the importance of a healthy credit score: “Understand your credit scores and how to maintain or improve your score is valuable information, and especially important when you want to apply for a mortgage.

Paying bills on time is by far the most important action you can take to ensure a healthy credit score. If you are a little late, make sure you pay before 30 days. At that point it will affect your credit score. And never let any account go to collections. I have seen a $58 book club account badly hurt someone’s credit because it was sent to collections! I’m not sure the person even knew they had not paid the bill.

The next most important issue affecting your score is the balance on your credit cards. Do not let the balance get above 30% of your credit limit, if at all possible. It is better for you to have 2 cards with 30% of the total credit limit than to have one card with 60%.

The third area that affects your credit is your credit history, or how long you have had your accounts open. Scores can go down when you open a new account because it will lower the average age of your existing accounts. Do not close a credit card just because you don’t use it. Also know that closing an account will not remove its history from your report. Keeping a credit card open with a low balance and periodic activity will help to keep scores high.

The type of credit you use will affect your score. A mortgage, auto loan and credit card are typical. Finance companies are the most negatively weighted type of credit .

The last category affecting your credit score is the number of inquiries that have been made to the credit agencies. Seven to 10 inquiries in 12 months can lower your score slightly.

After explaining all of the components, the most important points for you to remember are:

• Pay your bills on time
• Pay off debt (no more than 30% outstanding against your credit line)
• Develop a credit history with credit cards, a car loan, student loans, or a small loan from the bank.

Check your credit score once a year. There are three agencies that report your scores. A mortgage banker will use your middle score for qualifying for a loan. If you find an error in the report you have to write to the credit bureau with documentation.

For more information, go to: www.equifax.com, www.experian.com, and www.transunion.com 

Next blog posting…. “ What Can I afford?”.  Stay tuned. I look forward to helping you with your next transaction.

Special Thanks to Marilyn for her expertise in this area. Marilyn Cain, Mortgage Banker, 3475 Piedmont Road, Suite 900, Atlanta, GA 30305 770-822-2359 (direct), 404-295-1999 (cell).