The Intown neighborhoods of Atlanta and Decatur are littered with failed sellers and with mistaken buyers. There are too many real estate agents who can’t keep their signs straight or keep flyer boxes full, or even how to position properties for internet validity.

Regardless, our neighborhoods are also blessed with rich amenities, diverse and interesting cultures and subcultures, and inherent Georgia value, lot for lot, street by street.

I know that most of the time, once a seller has the right information, then they will make an informed decision about pricing and staging their property to sell quickly and for the highest possible price.

I have a 93 Point marketing plan that has been proven to get houses sold 6 times faster than the average agent and at 98.5% of list.

I have a 27 page Guidebook to Purchasing Georgia property that has helped to lead over 100 buyers to successful real estate closings since 2004. (the file is so BIG, you’ll have to email me to get a copy)…

Uniquely, my value stems from knowing the streets of Intown Atlanta like few other professionals, from mastering the pricing properties with clarity, and from looking out for the absolute best interests of my clients.

If you or someone else that you know is seeking help with buying, selling or investing in real estate right now, please connect them with me.

A client of mine motivated me to give my opinion on a simple valuation idea.

He wants to base future value of a 2012 purchase on the recent value of the same piece of real estate back in 2007.

I suggested that if 2007 is a baseline for him…not so fast.

Literally – not so fast. A return to 2007 prices is likely to be decades away, and for only select US submarkets. Others are literally stagnant or dead. Unrecoverable.

The US real estate market is not best measured today, or in the future by using 2007 as a baseline for quick comparison.

Gary Keller’s message is North American in scope, but his mindset can help anyone see the bigger real estate picture on their Intown Atlanta or Decatur street.

I wouldn’t be bold enough to state that about 2007 unless I heard that from someone else – I’m no expert, but Gary Keller is. I’ve known Gary for 14 years. He’s the best agent in the country and he built Keller Williams Realty over the past 29 years as the real estate agency of choice – we’ll be #1 worldwide, next year.

I began my career with KW in 1999.

Gary wrote the Millionaire Real Estate Investor book about 7 years ago – I have not ever studied a better book on the subject. You should buy a copy. http://www.kellerink.com/products/millionaire-real-estate-investor-single

Gary delivers an annual vision speech at the KW convention – he’s as smooth as they get and he never pulls punches. Great speaker on a dry subject – stats and charts galore.

If you have 180 minutes to learn more about US real estate, and if you think BIG enough to apply what you learn to your property interests in Atlanta, then watch these videos of Gary last month delivering his Vision Speech for 2012…

http://kwconnect.kw.com/connect/user/share.jsp?p=5426&sh=40544 part 1

http://kwconnect.kw.com/connect/user/share.jsp?p=7045&sh=40545 part 2

http://kwconnect.kw.com/connect/user/share.jsp?p=7046&sh=40546 part 3

http://kwconnect.kw.com/connect/user/share.jsp?p=7047&sh=40547 part 4

http://kwconnect.kw.com/connect/user/share.jsp?p=7048&sh=40548 part 5

http://kwconnect.kw.com/connect/user/share.jsp?p=7049&sh=40549 part 6

http://kwconnect.kw.com/connect/user/share.jsp?p=7050&sh=40550 part 7

http://kwconnect.kw.com/connect/user/share.jsp?p=7051&sh=40551 part 8

http://kwconnect.kw.com/connect/user/share.jsp?p=7052&sh=40552 part 9

I want my clients to succeed at the highest levels with their real estate goals. I also would rather challenge their thinking now, rather than disappoint them later with blown expectations.

Gary helps us understand the bigger picture, and he helps Intown Atlanta buyers and sellers set realistic expectations.

The headline sounds gloomy doesn’t it?

The good news is that we are only talking about distressed sales being 30% of the FOR SALE market.

The venerable Atlanta Business Chronicle reported on the latest CoreLogic numbers in a recent article: “In metro Atlanta, 37.4 percent, or 456,242, of all residential properties with a mortgage were in negative equity in the fourth quarter of 2011. This compares with 34.5 percent, or 420,160 properties in the third quarter.

Another 6.8 percent, or 83,248 residential properties, were in near negative equity in the fourth quarter, compared with 7 percent, or 85,819, in the third quarter.”

Negative equity is another term for underwater. Underwater means that a homeowner owes more to a bank or to more than one bank, than their property is worth for sale.

These 456,242 homeowners are spread throuhout metro Atlanta.

Some neighborhoods have a higher concentration than others.

Mark Fleming, Chief Economist with CoreLogic states: “The high level of negative equity and the inability to pay is the ‘double trigger’ of default, and the reason we have such a significant foreclosure pipeline.”

What does this mean to you?

• Not only has the percentage of distressed property SALES increased during this market shift, the percentage of distressed property ACTIVE listings continues at a high percentage of listings, also
• When Buyers have a greater percentage of distressed property listings to choose from, the likelihood of finding a lower-priced acceptable one to buy increases, forcing non-distressed property Sellers to lower their listing prices in order to compete

If you are interested in selling an Intown Atlanta or Decatur property right now, then please call us and schedule a meeting  – underwater or not, market knowledge rules. I am a Certified Distressed Property Expert, and helping underwater sellers with a short sale is one of my daily duties.

Helping an equity seller plan a move up, a move out or a move away, is always one of my daily duties.

Please call us if we can help you…underwater or not.

The conditions that drive sales are improving so it might be the right time to get your house ready for showing.

If you want to attain the highest market value for your property, you must have exceptional marketing.

Exceptional marketing – That’s where I come in.

Remember, you only get one chance to make a great first impression – so curb appeal INSIDE AND OUT is critical. And now most potential buyers are looking online first. So first impressions online are critical as well. I already provide the most extensive online exposure in the industry with the KWLS and my 93 Point Marketing Plan.

I use high-quality photography, videos and other techniques to bring the unique story of your property to life – online, in print and in person.

I inventoried my signs today, and I have 13 For Sale signs, 13 flyer boxes, and a lot of directional signage for open houses and street by street navigation, all ready for deployment – how about you call me up and we place one in your yard and cause the sale of your property, right now?

To learn more about your local market conditions and how to get the highest value for your property this spring, contact us today!

If You Know Someone Who Can Benefit From Our Real Estate Expertise, We Would Love To Help Them.

The Federal National Mortgage Association plays an even greater role in the housing market today as our nation recovers from the worst housing crisis since the Great Depression.

Making an offer to purchase a Fannie Mae HomePath property is now quick, easy, and entirely online! Beginning February 2, all offers on HomePath properties must be made using the HomePath Online Offer system.

More good news – you can set up your own profile on their site and search all you want, nationwide – it’s a feature rich site, and the bid process is way more efficient than many other methods of real estate purchase and sale today.

All offers for HomePath properties must be submitted through a licensed real estate broker/agent, so that’s where I come in!

I met Chris Gardner yesterday – the guy that wrote the book, “The Pursuit of Happyness.” He’s a remarkable man. He says some things in his recently published book “Start Where You Are” that should resonate with Atlanta sellers who really, truly want to sell their houses in 2012, even if their attempts at being ON the market haven’t worked so far.

Chris teaches a lesson that should resonate with you if you are among the more than 50% of all listed sellers in the past few years, that failed to sell.

Chris learned this lesson from his Mother one night while they were watching an old Western TV show – “The cavalry ain’t coming!”

Here’s a further look into what that means, from page 33 of his recent book:

“yes, I can speak to factors outside of my control and blame them for the predicament or make excuses about why things didn’t work out like they should have…maybe it’s all true, but that doesn’t change where I am…”

Are you someone who wants to sell your house in 2012, in spite of failed attempts in previous years?

Mr or Ms. Seller – what do you think stopped your home from selling?

“It’s the market.”

Here’s a few questions to ponder…

What did your previous agent do that you liked best about them and their services?

What do you wish they would have done better?

What would you expect from the next agent you choose?

If you are an expired, withdrawn or otherwise crestfallen Intown Atlanta or Decatur seller, then I would like to apply for the job of selling your home.

Are you familiar with the techniques that I use to sell homes?

If not, then when would be a great time for me to stop by and show you?

2. inspect your property, and better yet hire a professional home inspector

3. inspect the neighborhood

4. inspect for wood destroying organisms

5. investigate, test and verify everything about the property and it’s improvements

6. get a survey and verify zoning if you have development plans

7. buy an owner’s title insurance policy

8. consider obtaining a home warranty

9. establish a fiduciary relationship with a Realtor

9.5 never buy a house in a hole

Got that?

Curbed.com’s regional real estate reporting is superb. Their site is interesting and they are really on point with the style of their site.

Recently, they reported on a grim forecast that surfaced for Atlanta’s metro economy, bringing up the bad and the ugly that “planners” statewide need to consider.

The article cites ““Atlanta’s persistent unemployment, traffic congestion, a 29% loss in average per-square-foot housing prices between 2000-2010, and the fact that the city is increasingly offering a lifestyle opposite of that desired by the most desirable workers and companies. The opportunities he sees are also legion, though, and many of them simply involve re-embracing our transit roots: i.e. investments in commuter rail, continuing to capitalize on the power of our airport, making The BeltLine everything it can be and getting T-SPLOST passed.”

The AJC reported on the same Brookings Institution report that brought up these findings, stating the following about some of the vibrancy in Intown Hot’lanta:

“ One piece of evidence of the pent-up demand for walkable urban space: The only ZIP codes to actually gain housing value in the past decade were Virginia-Highland, Grant Park and East Lake. All of these were considered slums 30 years ago. Today they are among the highest price per square foot for housing in the region.”

When I decided to move Intown in 1998, I never looked back – isn’t it great to hear those stats about VAHI, GP and East Lake???

The folks at Local Market Monitor, a Cary, N.C.-based real estate research firm, helped Forbes compile a list of the top ten markets poised for a rebound. “They sorted through a plethora of housing and economic data for the 100 most populous cities and their surrounding suburbs, defined as Metropolitan Statistical Areas (MSAs) and Metropolitan Divisions (MSADs) by the U.S. Office of Management and Budget. LMM assessed home prices over the past 12 months, unemployment rates, 12-month job growth projections, population increases from 2006 through 2009 (the most recent data available from the U.S.Census) and new-home construction rates for the third quarter of 2011 as compared to the same quarter in 2010. Home price changes over the past three years were also taken into account, as markets that lost less value in the downturn have the potential to recover and appreciate that much faster.”

Atlanta is not one of those top ten markets. “Markets that will experience further price drops this year include Atlanta, Ga. (14.4% anticipated loss), Los Angeles, Calif. (10.3% anticipated loss), Seattle, Wash. (7.5% anticipated loss), Oxnard, Calif. (6.7% anticipated loss), and  foreclosure capital Las Vegas, Nev. (6.4% anticipated loss).”

Housingpredictor.com calls for a 6.7% drop in Atlanta – they’ve been about right for the 4 years that I’ve been reading their forecasts…

So, all real estate is local. Using the word “ATLANTA” does not accurately depict specific real estate submarkets. As an example, Decatur prices are up year over year and are trending upward. Inventory is down and a seller’s market exists in some cases. Some Buckhead neighborhoods are up and trending upward. Some Eastside neighborhoods are in flux and trending downward until the public schools get reoriented and reset for an honorable future.

So, stay tuned and know the facts and the data that drive your street’s value – your property’s value. The macroeconomists are not wrong about 2012 in “Atlanta,” so filter these forecasts with a hyperlocal lens, and please call me if I can help you with the valuation of a property, OK?

The Fairfield site is loaded with information – here’s the links page if you want to do some further reading.

First, the biggest news of the week – The Mortgage Insurance Tax Break is Gone.

On Dec 31st, Congress let 58 tax code benefits expire, including credits for home energy improvements, credits for builders of energy-efficient new houses, and home buyer tax deductions for mortgage insurance.  The mortgage insurance deduction has been a key mortgage financing benefit in place since 2007 which benefitted home buyers with income of $110k per year or less.  Combined with the new fees they are imposing on Conventional loans this Spring, Congress continues to increase the costs of homeownership rather than reduce them!  It should be noted that Congress still has the power to reauthorize all or some of the write-offs retroactively this year, but the current political atmosphere raises doubts about that happening.  Its time to let our elected representatives know how we feel!

FHA Extends Anti-Flipping Waiver Through End of 2012
To cut down on fraud, FHA has had an anti-flipping regulation in place for years preventing a seller from selling a home owned less than 90 days.  In an effort to accelerate the resale of foreclosed properties, FHA waived this rule in Feb of 2010 and then extended the waiver through the end of 2011.  FHA recently announced that they are extending the waiver through the end of 2012. This announcement has been well publicized but its important to understand that this is simply an extension of FHA’s policy for most of the last two years.  So, although this is good news, it is not necessarily new news.  It is also important to understand that most every FHA investor has "overlays" on top of the stated FHA guidelines that make the FHA guidelines more restrictive.  The most liberal overlays allow for the anti-flipping waiver BUT with the strict limitation that the resale price not be more than 20% greater than the acquisition price, even if there were renovations.  An exception would need to be granted for a resale value of more than 20%.  The bottom line is always be careful when your FHA buyers are buying homes that the seller has recently acquired.  Check to see when the seller acquired the property and make the Loan Officer aware of the acquisition date if it was within the last six months. 

What Every Lender Wants the Realtor to Know When Writing a Contract:
The “Financing Contingency Exhibit” is a wonderful addendum to the Purchase & Sale Agreement and something that the realtor should make a standard part of every financed transaction.  Here are a few tips when completing this form:

Always show the interest rate a good .25% to .5% more than the prevailing rate in case rates rise between the binding contract date and the rate lock-in date.

If you are not sure how much the buyer will put down, shoot high on the loan-to-value showing the highest % you anticipate the buyer will finance.

Selling Agents, always maximize the number of days that your buyer has to satisfy the Financing & Appraisal Contingencies.  Anything less than 20 days will not leave enough time for the lender to get the home appraised and the loan approved.  Be firm that at least 20 days are needed!

Listing Agents, always write the name of your most trusted Loan Officer in the space underneath Section 2.  What an opportunity to require the buyer making an offer on your listing to pre-qualify with your favorite Loan Officer. 

Rate Update

The news from Europe has been mostly negative over the last week.  Economic growth in Germany has been slower than expected.  Negotiations on restructuring Greek debt also have not progressed as planned.  S&P is downgrading the debt of several European countries, including France.  Lastly, the European Central Bank (ECB) has given no indication that it will provide relief to the troubled countries.  As a result of all of this turmoil, investors shifted funds to relatively safer investments, including US mortgage-backed securities (MBS), which has helped mortgage rates move lower. However, we already know that Congress is imposing new fees on Fannie Mae and Freddie Mac later this spring that are going to cause mortgage rates to bump up as much as .25% over the weeks ahead.  Anyone in the market to lock a mortgage rate should do it as soon as possible.

Looking Ahead
The most significant economic data due out this week are the monthly inflation reports.  The Producer Price Index (PPI) focuses on the increase in prices of "intermediate" goods used by companies to produce finished products and will come out on Wednesday.  The Consumer Price Index (CPI), the most closely watched monthly inflation report, will come out on Thursday.  CPI looks at the price change for those finished goods which are sold to consumers.  In addition, Industrial Production, an important indicator of economic growth, will come out on Wednesday.  Housing Starts will be released on Thursday, and Existing Home Sales will come out on Friday.  Philly Fed and Empire State round out a very busy week.

Please call me or call Jeff if we can answer any of your specific questions…