Friday, August 27, 2010

Absorption Rates for the South Metro Area

Here's a quick outline of what the current absorption rates are for the south metro area at this time. These numbers were pulled from Georgia MLS so we must give the disclaimer that the information is "deemed reliable, but not warranted. Subject to errors, changes and omissions". :)

What's an absorption rate? Absorption rate is a term used in real estate regarding the current inventory level and is a calculation that shows how much time it will take for the current inventory to be "soaked up"/absorbed/sold. The calculation is based on the current trend and rate of sales.

Butts County: 13.1 months
Clayton County: 5.2 months
Coweta County: 10.6 months
Fayette County: 13.2 months
Henry County: 8 months
Rockdale County: 9.6 months
Spalding County: 11.7 months

Here's a quick guideline to using the absorption rates in regards to the current real estate market:

  • 1-4 months inventory means that we're in a sellers' market and we can expect appreciation.
  • 5-6 months inventory means that we're in a stable market with prices following inflation
  • 7+ months inventory means that it is a buyers' market and we can expect depreciation.

You probably didn't have to read this blog to have known that we're in a buyer's market and are experiencing depreciation (to an uncomfortable extreme!). You may have noticed that Clayton County is reflecting an absorption rate of 5.2 which would imply that there is a stable market in Clayton County. If you're a Clayton County resident, don't start jumping for joy just yet. When we look at these absorption rates, they're almost like an average. To get an even better picture, you can break it down further into price ranges and then look at the absorption rate for each price range. So for example, in Clayton County the "average" absorption rate is currently 5.2 months. For homes priced under $100k, the rate is 4.1 months. On the flip side, for homes priced $125k-150k, the rate is 10.2. Because a high majority of homes being sold in Clayton County are homes priced below $100k, it messes with the absorption rate a little bit and could trick people into thinking the market was improving in Clayton County. We're praying to see that day soon! From time to time, we'll start posting the absorption rates and comparing them as well so that everyone can stay on top of the inventory levels and have an idea as to where the market is heading! If you would like more specific information on the absorption rate for your area (specific city, price range, etc) please call or email us and we'll be happy to send you some information.

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Wednesday, August 25, 2010

Landscaping = Increased Resale Value

Photo Credit: Kenny Lawn Service

I was recently flipping through the most recent issue of Better Homes and Garden magazine when I came across a little blurb ... "14% - that's how much good landscaping can increase the resale value of a home. Improving curb appeal may speed up the sale by as much as six weeks". Source: Associated Landscape Contractors of America

Preparing your home for the market means more than touching up paint, cutting the lawn, and keeping the beds made. Create a game plan prior to putting the home on the market and include some landscaping! In the photo above, they painted the exterior of the home, added black shutters and did some great landscaping. What a difference! It went from "ran down shack" to "adorable cottage." Do you think that will increase the number of showings, offers and the sales price too? You bet! If you're not able to take on a full landscaping renovation, put down some fresh pinestraw/mulch in the front beds, trim bushes, plant a few flowers, etc. A little goes a long way!

Photo Credit: Professional Ground Covers, Inc.

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If you're looking to sell your home in one of the following areas, contact us and we'll be happy to assist you with preparing your home for the market! Let us help you with all of your real estate needs! McDonough, GA Hampton, GA Stockbridge, GA Locust Grove, GA Peachtree City, GA Fayetteville, GA Jonesboro, GA Conyers, GA Newnan, GA Jackson, GA

Tuesday, August 10, 2010

Attention Home Sellers! Don't Overprice in this Market!

It's easy to want top dollar for your home, especially in this market when most sellers are losing money due to the decline in the market in our area (South Metro Atlanta).

We all know that prices have dropped dramatically in last year. Given that, you may think it's logical to set the asking price higher than "fair market value" in order to give yourself some negotiation room or in hopes of not losing money. Unfortunately, you probably won't realize it's too high until much later.

Here are just a few of the disappointments you'll be facing with an overpriced house:

1. Responses to your ads will probably be slow, since the public recognizes overpricing. Remember, people buy by comparison.

2. Some prospects who are attracted may be the wrong ones. They will be attracted because they're looking for a home priced the same as yours – but with MORE features. If you are priced like the one down the street with the stainless steel appliances, granite counters, hardwood floors, jetted tub, and other upgraded features, they'll expect your home to have them too! Don't disappoint them! It's a big turn off right when they open the door and realize you don't have them.

3. Very few buyers will even make an offer on an overpriced home. The reason? Even if you accept their lower offer, they aren't getting a bargain since the final price is probably no less than "fair market value."

4. Your home will help buyers make a favorable decision on other homes that are priced fairly. Do you really want to be the example that drives people elsewhere?

5. If you do find a buyer at your price, their mortgage application could be rejected because of a low appraisal; the house simply doesn't meet the standards that the price indicates. Rebekah and I always tell our sellers that "we have to sell their house twice" - once to the buyer and second to the appraiser. An appraiser has to see the value in the contract price or it simply won't appraise.

This all sounds rather bleak, so what can you do to solve the pricing issue? Work with an experienced professional who knows the market, like us! Take advantage of the research and advice we can offer, and you'll be on your way to setting the right price for your home.

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Monday, August 9, 2010

Awesome Decorating Idea!

We're a big fan of blogs, especially really cool blogs (like ours!). I recently came across a really neat decorating idea on a blog that I thought would be very fitting for our clients - framed keys!

What do you do with all of your old keys from places that you've previously lived? The correct answer would be throw them away or give them to the new owner since you don't need them anymore... creeper. (If you've recently bought a home, we can't say it enough... change the locks, change the locks, change the locks!) But if you happen to stumble across some old keys, here's a quick and easy project that we think is just darling. All you need is a shadow box, keys, glue and a pen! Write the addresses of the places that you've previously lived under each key. How simple and cute is that?! If you don't have any of your old house keys, lets be honest, who would really know if it's the right key or not? Of course, it would be more sentimental if it was, but if not, use random keys that you don't need anymore.

For more awesome ideas and to see the blog that we found this on,  click here

"Success is not the key to happiness. Happiness is the key to success. If you love what you are doing, you will be successful." -Albert Schweitzer

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