Tooting Our Own Horn June 29, 2011

The sector of the market most affected by the economy is the 1st time buyer market.  For the Intown neighborhoods, this means the ever-expanding parameters of East Atlanta, outer limits of Decatur, and the Tri-Cities area.  East Atlanta borders are now commonly expanded to include streets such as Rollingwood and Braeburn.  There are updated/renovated ranches and 40′s bungalows listed in the $130,000s whereas they had previously been selling for mid $150,000s and up.  The Tri-Cities area includes East Point, Historic College Park, and Hapeville.  This is where the best values are, in my opinion.

As these areas suffer due to the decreasing number of 1st time home buyers, there are a growing number of homes available for rent.  Rent less than a mortgage for $130,000.  In the Tri Cities area 2 bedroom/1 bath homes are renting for $850/mo whereas 3bedroom/1-2 bath homes can fetch $1,000-$1,100/mo.  To rent in the East Atlanta area, you are looking at min of $1200/mo rent in most cases.

Yes, I may be tooting my own horn, so to speak, as I have lived in East Point for 12 years.  I have found the community to be slowly but surely blossoming with newcomers from ‘intown’ neighborhoods, further south, and out of state.  There are a wide array of housing choices ranging from 1920 bungalows and 1940 bungalows to 1950s/60s ranches, cape cods, and traditionals.  There is even ‘new’ construction scattered about.  You can purchase a good size home for under $200,000!!  The prices are very competitive with other markets, and in many cases can beat other areas.

So, if it is time to move and you are looking for a home close to MARTA, downtown, and highways with friendly neighbors, in an intown area of diversity, give the Tri-Cities area a try.  Even if you are renting, you may find you like it enough to stay even after you can afford more.

 

Real Estate Investing – What should you do? June 13, 2011

Inman News just came out with an assessment of the 10 best markets for real estate investing. Atlanta was not one. Does that mean you shouldn’t invest in the Atlanta real estate market? Of course not.

With the growing number of foreclosures and the somewhat steady uncertainty in the future of home values, the rental market is strong. Most rental listings I take get rented within 30-45 days. These homes have had moderate renovations/updates and are clean and in move in condition.

When the market was strong, I had investor clients that would rehab their rental properties as tenants moved out and flip with a good profit. They purchased their properties when the market was down in that area. So, now is the PERFECT time to acquire properties, do a light fix up, and rent them for moderate-long term.

What about flipping now? It can be done successfully, depending on what specific area you invest in. This is higher risk with smaller reward. And isn’t higher risk supposed to bring higher reward?

Either way, there can be ROI in the Atlanta real estate market. If you want to know more and acquire properties, or you have a property ready to rent or resell, drop me a line. I am happy to help protect you and your investments.

Do You Want a Pre Listing Sneak Peak? January 25, 2011

I have 3 homes with motivated sellers sprucing things up and prepping for the market. All 3 are brick bungalows and will be priced under $175,000. If you want a sneak peak at the information/features, pricing, and a couple photos, please email me your info and I will send it to you. Send me your name, tel #, email address, date you would like to purchase by, area you are looking in, and other features you would like in a home. We’ll compare notes and see if we have a match! (Be sure to include your agent name/co if you have one.)

Time for Tax Exemptions January 25, 2011

The words ” Tax Time” usually brings panic and doom to many.  However, when it refers to filing for your homestead tax exemption, these are words that will bring some relief.  Homestead Exemption is the reduction to your property taxes received for being an owner occupant.  The home must be your full-time, primary residence as of January 1 of the tax year.  For information on filing in the different counties of Metro Atlanta, click on the link pertinent to you:

Fulton County – deadline is April 1, 2011                  404-612-6440

http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=206

DeKalb County – deadline is April 1, 2011               404-298-4000

http://web.co.dekalb.ga.us/taxcommissioner/homesteadgen.html#applications

Gwinnett County – deadline is April 1, 2011           770-822-8800

http://gwinnetttaxcommissioner.manatron.com/Tabs/Property/HomesteadExemption.aspx

Cobb County – deadline is April 1, 2011                   770-528-8600

http://www.cobbtax.org/content/pdffiles/2011%20BASIC%20HOMESTEAD%20APP%20&%20WEB%20LTR.pdf

Clayton County – deadline is April 1, 2011                 770-477-3311

http://www.claytoncountyga.gov/departments/tax-assessor/residential-property.aspx

Cherokee County – deadline is April 1, 2011              678-493-6122

http://www.cherokeega.com/departments/department_section.cfm?displaySection=Homestead%20Exemptions.txt&departmentid=30

Henry County – deadline is April 1, 2011                   770-288-8180

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

Forsyth County – deadline is April 1, 2011                770-781-2106

http://www.qpublic.net/ga/forsyth/homestead.html

Douglas County – deadline is April 1, 2011                 770-920-7272

http://www.douglastaxcommissioner.com/

Fayette County – deadline is April 1, 2011               770-461-3652

http://www.fayettecountytaxcomm.com/subpages/HOMESTEAd.asp

Paulding County – deadline is April 1, 2011               770-443-7606

http://www.paulding.gov/index.aspx?NID=210

Happy 2011! January 3, 2011

Happy New Year!  2011 brings great hope to many aspects of our lives, including the real estate market.

I did follow through on my commitment to myself to finally get my broker’s license.  I took the course in Dec ’09/Jan ’10 and passed the school test in January.  It was a matter of taking and passing the state test, then paying for the license.  You know what they say about you get what you pay for. I paid, so now I have my Associate Broker License with Chapman Hall Realty.  What does this mean to the public?  It means I am committed to knowledge about the laws of real estate and applying them to protect the consumer. (you)

Does this mean I have more vision? Probably not.  Though I do look at real estate markets nationwide.  We are getting even more house for the money in Atlanta thanks to the foreclosures.

Contrary to what some media outlets want us to believer, the rampant foreclosures are not a result of people walking away for the sake of walking away.  There have been so many mortgagees trying to help the banks by agreeing to sell their homes in a short sale situation.  This means the mortgagee gets a credit ding almost as big as that with a foreclosure, sometimes agreeing to come to the table with money, and allowing the bank to reserve the right to pursue them later – all if the bank will agree to a sales price less than what is owed.  Even in lieu of the cooperation from the mortgagee, often banks foreclose anyway, having wasted time, energy, and money of numerous people.  I meet people who have been laid off, furloughed, or hours reduced.  And yes, I do meet people who just walk away.  So, those out there buying need to be thankful for all the losses others have incurred, so they can make a gainful investment.

The biggest question is “Will the market come back this year?”.  No one can in all honesty say yes.  I agree with one of my peers that it will be 3-5 yrs before we see a shrunken distressed property market and solid raised values.  For that to happen, our US economy has to strengthen.  And as there is an increase in self-employment, there will have to be loans for self employed available.  Stated income loans were great, and the banks only have themselves to blame for not asking for more verification of stated income.  Atlanta has had a strong segment of the market comprised of First Time Home buyers over the past decade.  There were incentives for 100% financing for these buyers.  Now, minimum downpayment requires 3.5%.  That is now a sliding scale percentage based on credit score.  So, yes, home purchases with 3.5% – 5% minimum down payment is still attractive.  But with gasoline prices expected to hit $5/gallon by the end of 2011.  How can those with an income of under $40,000 and the long commutes Atlantans have really save money?  This remains to be seen.

There are still too many questions to give good answers.  But then, the experts don’t seem to have the correct answers until we are past the crisis.

My advice remains the same. -

1. Buy what you can afford (monthly payment, assoc fees, utilities, taxes, insurance, routine maintenance, repairs)
2. If you think you will want to move in the next 2 yrs, it may be better to rent, unless you would be happy being an absentee landlord.
3. If you want to be a landlord, check the area rents then buy and list property for less than the area average.
4. Contact a real estate professional to represent your interests.  It’s a small price to pay for peace of mind.           (and if you are the buyer, the seller is probably paying for your peace of mind.)

Not a Freeze on Foreclosures?! But they said…. October 14, 2010

That’s right folks.  Bank of America did not report a Freeze on Foreclosures, like the media has been misstating.  Based on a memo from Bank of America, I now see they have put a Freeze on Foreclosure SALES.

This simply means you can and will still be foreclosed on.  But, instead of BoA offering the property for sale on the courthouse steps, they will keep it in their inventory.  They will wait until they release the freeze before offering it for sale through public listing services too.

However, this “freeze” does not necessarily apply to loans backed by Freddie Mac or Fannie Mae.  They may still opt to offer the property for sale either on the courthouse steps or through the public listing services.

Bank of America still asserts that they have not found any illegal foreclosures in their processes, nor any errors in their system.  They expect to be back to normal procedure within 30 days.

Therefore, if  you have received a foreclosure notice, my best advice is to contact an attorney immediately.

Friday’s Announcement of Foreclosure Freezes…what does it mean? October 11, 2010

As you may have read or heard by now, Bank of America announced on Friday it will put a freeze on foreclosing on any more properties across the nation.  Other lenders are sure to follow, as many states’ Attorney General Office are investigating the foreclosure procedures and some lawyers in several states have filed class action law suits.

What does this mean to you and to the nation as a whole?

#1 – if you are a buyer, buying a foreclosed property right now, you may not be able to get title insurance.  Title insurance is purchased, usually at closing, within 30 days of purchase.  It covers future claims to faults in the title from ownership to outstanding liens and unpaid taxes or utilities.  In the case of a claim, the title company would negotiate and settle the claim and you maintain ownership.  Without title insurance, you could be liable to settle the unpaid lien, tax, utility bill or in worse case scenario pay legal fees to fight for your ownership.  If you lose, you could lose your home but still owe the mortgage.  Two of the biggest title companies have released internal memos stating they will not issue title insurance on foreclosed properties.

#2 – If you are one of those buyers, looking for that “cherry” deal, there will be much more fierce competition, since fewer foreclosure properties will be released to the market.  Some properties are also being withdrawn from the market.  I have even had about 4-6 foreclosure sales in the past year either delayed or cancelled due to title issues.  3 have had to be re-foreclosed, so the buyers lost their investment of appraisal fee and home inspection fee.  They did receive their earnest money back.

#3 – If you are a homeowner trying to modify your mortgage or short sale your home, perhaps the banks will have more motivation to be expedient in the process.  Some of the class action suits address the fact that new legislation requires the banks to make every effort to keep property owners in their homes/to avoid foreclosure.  If documents reveal the delays, loop holes, and lack of effort on the banks’ behalf, then the claimants have a strong case, in my opinion.

#4 – If you are a homeowner trying to sell your property, congratulations!  You may have less competition.  You may no longer be fighting continuing declines in property values due to surrounding foreclosure listings and sales.  You may just have a stronger chance of selling your home!  This doesn’t mean you can get more than fair market value.  This doesn’t mean appraisers will not use foreclosure comps from within the last 3 months, within 1-3 miles of your home to arrive at appraised value.  This doesn’t even mean there will suddenly be more home buyers out there.  It simply means the market has a temporary reprieve from an increase in foreclosure listings.

#5 – Yes, it means recovery of the housing market is also delayed.  Since 2007/08 I have predicted recovery in the 2nd quarter of 2011.  Even prior to Friday’s announcement, I knew my prediction was too hopeful.  Through the past year, I see there are too many factors that are unpredictable to make an accurate prediction – even for the economists.  The economists say we are out of the recession.  Perhaps the overall economy is.  But the housing market is not, and too many other markets are tied to housing.  Once the housing market returns to having about 3-5 month absorption rate (inventory that will sell within 3-5 months for the # buyers in the market), then I will feel like the Atlanta area has recovered.  Right now, different areas of Metro Atlanta have different absorption rates.  In general they range from 8 months to over 1 year.

Like I will say in every post, if you need to sell – sell at the right price and eliminate any objections a buyer may have (color, finishes, features, etc).  If you want to buy, select the type of housing that suits your lifestyle (area, interests, townhome/condo/single family).  With an appraisal contingency, there is almost no way to pay too much for a home in this market.  And, if you want exceptional representation, please contact me.  678 508 6811 joan@intownfocus.com

Looking back at conquering fear October 8, 2010

It often seems we are people are driven by fear.  I have always found my worst decisions have been those driven by fear.  Why?  We can’t control what others do.  If we base our decisions solely on the information provided by others, then our decisions may not suit us since the motives and decisions of others are always changing.

I look back to the fall of 2008 when it seemed Americans were afraid to put their money in banks, fearing the collapse of our banking system.  But somehow, people did conquer their fears and put faith into the banking industry.  Deposits were made, checks were cashed, loans were granted, etc.  Then in 2009 American’s fear was driven by unemployment and the domino effect of the American Auto Industry.  It was reported that American’s weren’t buying homes because of their fear of job loss.  Today, many areas have their highest reported unemployment rates in decades, but homes are still being bought and sold.  And, what else, the auto industry has already started recovering.

So, what have the most recent fears been that have driven our real estate market in 2010?  The tax credits!  Yes, the incentives helped soften American’s fears.  So, if anyone was at all contemplating becoming a home owner, the tax incentive got them off the fence and into the buying market.  Now that the incentives have expired, we are all certainly wondering, “what’s next?”.

What should always be next should be the answer.  Don’t make decisions based on fear or on someone else’s actions.  Make a decision to buy or sell real estate because it is the best decision for you, your finances, and your lifestyle.  You no longer have to buy in an up and coming” area because it is all you can afford.  You can buy in any area of Metro Atlanta.  There are neighborhoods in and North, South, East, West of Atlanta that have a strong sense of community. Many have Charter Schools, if your lifestyle is dependent on schooling.  Select one to lessen your commute and increase your quality of life.  Know if you want to be close to friends, church, school, work, airport, highways, restaurants, etc.

Just do yourself a favor, consult an experienced real estate professional.  He/she will navigate you through the jungle of deadlines and terms, knowing what is reasonable and customary, and what is not in your best interest.  His/her job is more than looking for/finding “THE” home.  Also, consult a local lender who works with GA lending laws.