I turn to Chartmaster Chuck. Right here, at IntownInsider.com, we turn to him a lot for:

* studies of the price reduction effect
* further studies of the price reduction effect
* cool charts like this one about how only 23% of all Intown Atlanta houses were priced right in H12008

I turn to Chris Martenson. Take “The Crash Course.” Seriously, go to this man’s site and take the “The Crash Course.” It will change your life.

Weekly, I turn to John Mauldin. I received his Thoughts From The Frontline newsletter this morning on my Blackberry when I woke up at 3:30 a.m.

This week - The Title – “Betting on Financial Armageddon.” His clear and cogent restatement of stories that he has been telling about “Commercial Paper” is worthwhile reading. Read it if you want a serious, compelling summary of recent financial events.

If you are a real estate agent, or if you are helping others or helping yourself navigate the curiosities of real estate holdings today, then you should read John Mauldin and whomever else he recommends that you read.

I had a similar epiphany with John Mauldin last Saturday morning around 3:30am – The Title of that article – “Housing: Are We At Bottom?” 

John is a human vacuum of financial insight and his connections will help you make better life decisions.

I read through that article on “The Bottom” on my Blackberry while thinking deep thoughts about the days ahead as I lie awake, and as my lovely wife Laura and beautiful daughter Kaylie sleep beside me.

No matter what politicians and bankers and TV’s talking heads tell you, just know this - my daughter has already got all of this figured out! When she starts talking, she will let us know. She’s got your bottom right here…

Now, what am I doing up at 3:30 a.m.? I’m being the Intown Insider and I encourage you to get your real estate on.

I turn to John Adams. He is the most trusted voice in Atlanta real estate. This article about appreciation really crystallizes the paradox of pricing and pricing right - for the market of the moment. This article is loaded with “post-foreclosure” property purchasing insight. His website, his classes and his radio show are the proof - if you are nervous or uncertain about Intown Atlanta and Decatur real estate values and holdings right now, keeping abreast of John’s thoughts is worth your time. You’ll feel better about things.

I turn to Steve Palm. Steve’s insights about FMLS data every month keep me and my clients informed with raw, real data. His latest letter about metropolitan Atlanta real estate is based on cogent, detailed analysis of the real numbers.

Any real estate agent that you meet who spews BS about “up and coming areas” and who gives you advice on flipping properties needs to memorize this statement after you kick their ass:

Atlanta’s “…downturn started 3rd quarter 2006 and it has yet to turn positive since then. Not only has the market not turned positive, but we have yet to hit a bottom. We are in a recession and it will not turn positive till our economy starts
improving…When our housing market turns around, closing prices will rebound quickly. I believe that prices have neared a bottom, so this is a great time to buy. There is over a 14 month supply of homes out there, so your buyer will have much to choose from.Our months-supply of homes is at an all-time high, but there were actually 4,500 less homes for all single family on the market at the end of July versus the same time last year. The reason, our demand has been just so much lower.
There were 7,112 expired listings in July for all single family. This was 1,100 more than July 2007 and 6,300 more than 2000. There were 5,993 expired listings for single family detached and 1,119 expired listings for condos & townhomes.Days-on-market was 88.9 in July for all single family and the lowest reported DOM since August 2007, but still 3.7 days higher than July 2007. When the going gets tough, the tough get going. Anyone involved in residential real estate that makes it through this downturn will be positioned extremely well when the turnaround happens…”

I turn to Seth Godin. He says that in order to be trusted in a low trust world, you must tell authentic stories. Read Seth’s blog - here he is telling us about “What Advertising Can’t Fix.” 

Over the next few weeks, just remember that advertising will not fix what is wrong, especially if that advertising comes from a certain political party, a certain political candidate or a certain salesperson of any stripe who asks you to trust them.

They are on Main Street and on Wall Street.

This chart is a big eye opener.

Take into account the following facts:

1. The <$200K price range had a more severe impact (-24.9 percentage points) on the percentage of listing price realized after a price reduction, but all price ranges are affected heavily when a reduction is necessary

2. The lower price range impact was likely amplified by the number of foreclosed properties in that price range

3. Between $200K and $999,999, Sellers who don’t price their property right the first time are losing anywhere from 5-8% on the sale … that doesn’t even account for the lost capital - time is money, and monthly debts must be paid, month after overpriced month

In the past 2 weeks, we’ve concluded the following, in addition to this bold statement about the effect of price reductions:

A. Sellers are paying some or all closing costs in about 71% of Intown transactions

B. Most Listing Agents and Sellers, most of the time are off by about 7% List vs. SOLD on Intown sales

C. The Median Sales Price is down 10.1% through the first half for the Intown neighborhoods we surveyed

Here are the submarkets that we studied…

1. Ansley Park and Morningside southward to Inman Park and Reynoldstown - that includes Midtown and VAHI

2. Eastside Atlanta Dekalb - the neighborhoods East of Moreland and Briarcliff, plus Johnson Estates and southward to Edgewood and Kirkwood - all North of I20

3. Southside Atlanta Fulton - Grant Park, Summerhill, Boulevard Heights, Ormewood Park, EAV

4. Greater Decatur - South of Mercer U, down to I20 at South Dekalb Mall

If you seek a detailed, street by street market analysis of your neighborhood, or if you are tired of hearing the same old thing from real estate agents and so-called property marketers, then call The Rootdown Group. You will be glad that you did…

My friend Kirk Nace is one of the foremost thinkers in the real estate business - he is an esteemed faculty member at Keller Williams University and he is a renowned business coach for real estate agents.

“Kirk Nace became involved in land surveying and development in 1979 and then became an active investor in 1981. In 1991 Kirk became an active realtor. Since THEN, Kirk has BEEN A PART OF, AND ULTIMATELY trained the top ½ of 1% of real estate salespeople and investors in the US and Canada 

Kirk HAS OWNED OR WORKED  with multiple ERA, COLDWELL BANKER, CENTURY 21 AND REMAX companies; his own private real estate company; mortgage brokerage business; private real estate investment companies; title businesses; property management companies, and his own private business consulting firm.”

Kirk is tough, and his fledgling blogsite “SMASHED FEET”  is a testament to his no-holds-barred style of communicating the reality of the real estate market, today.

In conclusion, visit this website if for no other reason than to peruse this list of “questions to consider if you own real estate today.”

Read the rest of this entry »

In the past week or so, we’ve reported that:

A. Sellers are paying some or all closing costs in about 71% of Intown transactions

B. Most Listing Agents and Sellers, most of the time are off by about 7% List vs. SOLD on Intown sales

C. The Median Sales Price is down 10.1% through the first half for the Intown neighborhoods we surveyed

Here’s what we looked at…

1. Ansley Park and Morningside southward to Inman Park and Reynoldstown - that includes Midtown and VAHI

2. Eastside Atlanta Dekalb - the neighborhoods East of Moreland and Briarcliff, plus Johnson Estates and southward to Edgewood and Kirkwood - all North of I20

3. Southside Atlanta Fulton - Grant Park, Summerhill, Boulevard Heights, Ormewood Park, EAV

4. Greater Decatur - South of Mercer U, down to I20 at South Dekalb Mall

So, those who get this get the quick sale. We’ve found that most of ya want a quick sale, don’t ya?

The Rootdown Group gives good advice to Sellers - call us. We would appreciate the opportunity to earn your business.

Sellers in Intown Atlanta and Decatur paid some, or all, of their Buyer’s closing costs in 71% of the transactions through June, 2008, which is nearly the same as in the last two years…

Seller Paid Closing Costs

1. Ansley Park and Morningside southward to Inman Park and Reynoldstown - that includes Midtown and VAHI

2. Eastside Atlanta Dekalb - the neighborhoods East of Moreland and Briarcliff, plus Johnson Estates and southward to Edgewood and Kirkwood - all North of I20

3. Southside Atlanta Fulton - Grant Park, Summerhill, Boulevard Heights, Ormewood Park, EAV

4. Greater Decatur - South of Mercer U, down to I20 at South Dekalb Mall

Based on my experience, these numbers seem even higher  - like 90% of the time or more. That being said, I’ve also experienced two transactions this Summer where appraisal almost caused the deal to fall apart and the Buyers ended up paying their own closing costs, among other concessions, in order to make the deal work.

It’s business as “unusual!”