Stephens & Stephens

Why Real Estate Deals Fall Apart

2012-01-26T11:45:00.001-05:00

I have seen estimates stating that 29% of deals that go to contract and require a mortgage, don't close. That number boggles my mind. It means that even after a buyer and seller come to terms on a sale (not an easy feat these days), 3 out of 10 transactions fall apart. What are some of the more common reasons?

■ Appraisal issues – In many markets, we are still seeing declining values. Appraisers are in a difficult position, and with so many transactions (including seller's concessions to assist buyers with closing costs) values aren't always coming in at sales prices.

■ Short Sales not being approved by the current lender – With so many sellers owing more than their home is worth, buyers’ proposals need to be sanctioned by the lender (who will be receiving less than they are owed). Some of the offers are too low, but often, the lender isn't local and they really don't know what the property is worth today.

■ Bad pre-approvals from the loan officer – Today, loan officers who are not reviewing tax returns, analyzing bank statements, and asking for detailed explanations and documentation on credit blemishes, are truly hurting the customers. Issuing pre-approvals based on the representations of the customer is reckless and a cause for dismay later.

■ A lack of transparency – Whether it's a seller or agent not disclosing property issues, or a buyer trying to sneak things by an underwriter, too many people think they can cut corners. That is not the world we live in anymore. Everything is uncovered. Being honest in the beginning, gives you the best chance to overcome obstacles.

It is clear by the numbers that closing loans can be more difficult today. However, with proper planning and integrity, many of the challenges can be dealt with early and successfully. Agents documenting values of the homes, loan officers doing complete reviews of the loan profile up-front, and everyone telling the truth helps get deals to a successful conclusion and avoids horror stories.

It helps to have a good agent, or two of them, for that matter (HINT HINT)! Give us a call or send us an email. We have a 95% contract to close ratio!

Article from KCM Blog, Steve Harney

A Thank You from Our Clients Who Closed Today....

2012-01-20T12:39:00.001-05:00

One of the most rewarding parts of our job is knowing that we truly helped someone. We closed this morning with a very sweet couple purchasing their first home. They initially found us on the internet while browsing homes and set up a meeting to view one. After meeting the first time, we hoped that they felt as comfortable with us as we did them, because we truly wanted to help them. They did! They called us back and we showed them a few more homes over the course of two weeks before they came across this sweet home in the Eagle's Landing area --->

They scooped this beautiful 4 bedroom/2 bath ranch up as a foreclosure with new carpet, fresh paint, new stove, new dishwasher, and a new roof at the wonderful price of $100,000. The seller even paid $3000 in closing costs for them! Their monthly payment (just shy of $800) is only $40 more a month than they were paying in rent and now they are paying for something that is truly theirs. This home sold for $169,997 in July of 2005!

With that said, we are glad to know that they were as happy with our service. Here is the thank you note we received from them today at closing.

Assumable Mortgages - There's Power in Them!

2012-01-19T21:11:00.002-05:00

One of the rarely touted advantages of people taking FHA mortgages today is the fact that they are assumable. What that means is, when the FHA homebuyer of today is looking to sell his home, a qualified purchaser can "take over" their loan.

Most people believe that interest rates will return to a "normal" range (between 6.5% and 7%) in a couple of years. When you assume a mortgage, the terms remain the same. This means that a buyer five years from now can enjoy a 4 – 4.5% mortgage by assumption rather than the 6.5% – 7% mortgage they would get without it. Since most people buy homes based on how the monthly payment fits into their personal monthly budget, this is extremely impactful.

As an example, a $300,000 loan at 4% today carries with it a $1,432.25 principal and interest payment on a 30 year fixed mortgage. If offered for sale in five years, the purchaser could assume the $271,858.56 balance with the same $1,432.25 payment and remaining term of 25 years. The total payments over the 25 years would be $429,675.

Compare that to a new $272,000 loan at 6.5% for 25 years, which would carry a monthly payment of $1,836.56 (over $400 more a month than the assumption and more than $120,000 more over the 25 year term).

At 6.5% for 25 years, to wind up with the same payment as the assumed mortgage, our borrowers would only be getting $212,000…$60,000 LESS!

The point here is that, when rates go up, homes with assumable mortgages will have more value and will sell at higher prices because they are more affordable. As an additional bonus, the closing costs on assumable mortgages are significantly less (especially here in New York where NYS Mortgage Tax is such a large component of closing costs).

The borrowers must be credit-worthy of course (have good credit, qualifying income, and necessary assets to close), but they would have to be credit-worthy to get a new mortgage too!

Besides the multiple other reasons to obtain an FHA mortgage (low down payment requirements, extended income ratios, lower credit scores, and easier sourcing of funds), there is another perk. In the future, there is a good chance that you may be able to sell your home for more money because of the FHA loan's assumability.

Homes Are Selling! People are Getting Mortgages!

2012-01-12T11:45:00.000-05:00

Many believe that very few houses are selling and that almost no one can get a mortgage. We want to let everyone know that neither of these assumptions is true.

Recently, the National Association of Realtors (NAR) released their Existing Homes Sales Report. According to the report there are, on average, 12,109 homes selling in the United States EACH and EVERY DAY! That means that approximately 12,000 houses sold yesterday, approximately 12,000 will sell today and approximately 12,000 will sell tomorrow. So the thinking that homes aren't selling just isn't true.

Another interesting fact in the report was that 72% of these transactions were accompanied by a mortgage. That means that approximately 8,719 people qualify for a mortgage on a daily basis in this country.

There are over 12,000 homes sold and over 8,000 mortgages granted every day. The real estate market is doing better than many believe!

Guitar Shaped House - Fayetteville, GA UPDATE!

2012-01-05T17:08:00.000-05:00

Remember awhile back when we did the blog post about the guitar shaped house in Fayetteville, GA? If not, take a look here: Guitar Shaped House

As it turns out, we get a TON of hits about this property on our blog and so it made me wonder the other day... what happened to the ol' guitar? Did it ever sale? If so, for how much? When I initally posted about it, it was listed for $160,000. As of today, you can own this fabulous house for the LOW, LOW price of $68,000!!!! What a price reduction! According to the agent's notes in MLS it needs a total renovation! Any investors out there looking for a project?!?

Taxing Real Estate to Fund Heathcare?

2011-12-27T11:10:00.000-05:00

Today, we're dubunking a political myth and sharing a copy of an article written by the head of our broker support staff, Ann Bone that deals with the common misconception over the "real estate sales tax" that is going to be imposed to support President Obama's heath care plan. Read on:

Have you heard that Obama’s healthcare legislation will mean a 4% tax on all real estate sales? It seems that most agents have either been told this or are telling others this. IT’S NOT TRUE!

Open, read and pass on this NAR-prepared brochure (it gives some differenet financial scenarios where the taxes are applied).

http://www.realtor.org/wps/wcm/connect/aa91b2004493f31781a8c35d6aeab3b5/government_affairs_invest_inc_tax_broch.pdf?MOD=AJPERES&CACHEID=aa91b2004493f31781a8c35d6aeab3b5/

Beginning in 2013, sellers realizing a PROFIT on the sale of their personal residence of $250,000+ for single sellers or $500,000+ for married sellers will be POTENTIALLY taxed and ONLY on the PROFIT over and above $250,000 for single sellers and $500,000 for married sellers and ONLY if their Adjusted Gross Income for that year exceeds $200,000 for a single seller and $250,000 for married sellers.

The attached brochure illustrates all the “what if?” scenarios about selling investment property and rental income. Please save this link; you’ll be rewarded by grateful buyers and sellers for knowing the facts.

Merry Christmas to Our Fabulous Friends, Family, and Clients!

2011-12-23T10:53:00.000-05:00

Merry Christmas to Everyone!

Our office will be closed this weekend, December 24th & 25th, as well as Monday, December 26th. Please feel free to call or email if you need us.

&

How Your Agent Markets Themselves, Indicates How They Will Market Your Home!

2011-12-22T11:52:00.003-05:00

With the glut of available homes on the market, how your home is marketed is the biggest factor in determining how quickly it will sell (assuming the price is reasonably presented). A real estate agent's marketing plan should be the most crucial determinant in deciding who to list your home with. But, how can you really know about the agent's marketing strategies?

One way is to see what they are doing with their current clients. Do those homes "stand out"? Contact those sellers. Are they getting a lot of showings and offers?

Another way is looking at how the agent markets themselves and their services:

■ Does the photo they use for themselves represent how they look?

■ Does their print advertising look like everyone else's?

■ What technology are they using to show your home? Are they using video?

■ Is their website interesting and full of current information or just cookie cutter?

■ Do they have a professional presence on social networks?

■ Does their marketing show them as an expert or does it merely pat them on the back?

Quality photos on the web and top notch video may be the factor that drives people to see your house (and they are very important). However, how an agent drives traffic to see those photos and videos is even more important.

We all know the saying - "It's not what you know…it's who you know." However, in marketing, it's more crucial to know "who knows you". Agents who are unknown are not good marketers. Today, you need an excellent marketer to represent you.

Source: KCM Blog - Steve Harney

Bank of America Mortgages/Home Loans

2011-12-19T11:16:00.001-05:00

Anytime we work with a buyer who wants to obtain a mortgage with Bank of America, we can't help but cringe a little (okay, maybe a lot). Many of times, buyers don't know where to begin shopping for a mortgage so they call the big boys .... Bank of America, Wells Fargo, etc. Unfortunately, they don't tend to win "service awards" in our book. I came across a video this morning of a couple from Georgia who missed four closing dates while they waited on Bank of America to get it together and close their loan. Meanwhile, the seller began charging a $50/day per diem for every day after their scheduled closing date. In effort to get Bank of America to cover the per diem and get the loan closed asap, they created this (cheesy) video ... and it worked! They also created a blog that outlines the entire loan history: http://closeourloan.wordpress.com/the-details/

video platform video management video solutions video player

...interesting to see what you have to do these days to get things done!

Most buyers don't realize how important it is to have a GOOD lender working for them. Not only is your lender determining your mortgage payment and fees for the next 30 years, but a bad lender can also cause all kinds of problems while putting your deal together on a home. In the worst cases, they can cause you to have to pay additional earnest money, hefty per diems (these guys had to pay $50 for every day they were beyond their closing date), and in the ultimate worst case scenario, you could miss out on the house all together. If you are unsure of the lender you are using research them....would you use BOA if you googled them and found this video? You could always call us....we have free advice on our experience with lenders and we know a few good ones we can send you to.

Homes Sales are Increasing!!

2011-12-18T23:14:00.001-05:00

The National Association of Realtors recently released their 2011 3rd Quarter Housing Report. In the report, they showed that combined sales of single family homes, condos and co-ops increased in EVERY state as compared to the 3rd quarter of last year. Here are the state-by-state numbers.

The next time someone says houses aren’t selling, ask them which state they live in and show them the chart.

Source: KCM blog - Steve Harney

Shadow Inventory in Georgia

2011-12-16T12:15:00.001-05:00

The nation has about 1.6 million homes that loom in shadow inventory, 22 percent lower than the peak in January 2010. Despite the decline, the shadow inventory is still dragging down home prices, housing experts say.

Shadow inventory is when homes are either in foreclosure or repossessed by banks but have not yet hit the market. While CoreLogic recently reported the drop in the shadow inventory as a “positive sign for housing,” the number still remains high and is weighing on the market, housing experts say.

The states with the largest shadow inventories are California, Florida, Illinois, Georgia, and Ohio, according to RealtyTrac.

For example, California has nearly 270,000 homes in its shadow inventory. "It's absolutely an impediment," Dustin Hobbs, a spokesman for the California Mortgage Bankers Association, told the USA Today. "It's hanging over the market."

The high numbers are blamed from a moratorium on foreclosures in 2009 by legislators as well as delays from lenders as they try to find a workout solution with home owners to keep them in their homes.

According to Standard & Poor's, the national shadow inventory of homes--worth an estimated $405 billion--will take four years to clear. It’s a catch-22 for banks: If they clear the shadow inventory too quickly, the inventory will overwhelm the market and could drive prices down further. On the other hand, if they clear the shadow inventory too slowly, it will prolong the housing market recovery, the S&P report noted.

Source: “Shadow Inventory Depresses Sale Prices,” USA Today (Oct. 4, 2011)

Our Two Cents:

If you are a home seller.....put your house on the market now! Waiting until Spring for the "market to pick up" or "until prices come back up" isn't wise. With shadow inventory looming, prices aren't going to come back up anytime soon in our area (Metro Atlanta Real Estate). In fact, in some areas, they may even depreciate a little further. Putting your home on the market now may be the wisest thing to do.

If you are a home buyer....it's not necessarily a good thing to wait on the shadow invenotory because no one knows for sure when it will arrive to the market. It's not like they will release hundreds of homes on the same day; it will likely slowly trickle in over the course of months and, as mentioned above, it will take years to clear out. Also, if you wait on the homes to come to market in hopes that prices will drop you are risking an increase in interest rates over the next year. If interest rates increase, even if you pay slightly less for the property, you will end up paying more to own the home.

Info in this blog was sourced from: KCM Blog - Steve Harney
and Shadow Inventory Continues to Weigh on Market - Daily Real Estate News

The Complete Short Sale Package

2011-12-06T21:31:00.001-05:00

Short Sales can be very difficult to navigate for a Realtor, as well as their clients. There's no doubt that there is value in having a Realtor who knows about Short Sales. If you are considering trying to complete a short sale on your home, be sure to ask your agent about their knowledge of the short sale process and experience in negotiating a short sale. It is very critical to the timeliness and success of a short sale situation that you have a Realtor familiar with the process. With that said, below is some information that will help you gather the necessary docs that will help you and your Realtor in trying to complete a short sale.

We are again honored to have Christopher Reale, Director of Short Sale Operations at Lepizzera and Laprocina Title and Escrow Services, as today's guest blogger. He is an expert on the short sale process and will share his knowledge with us on a regular basis. – The KCM Crew

"...if you take a shot gun approach rather than a targeted systematic approach to the process, you will set yourself up for failure. Below are the documents one must attain to make sure the short selling bank does not throw the file back on your desk when submitting the file for short sale approval:

Financial Information

■Tax information

■Two most recent 1040′s

■Two most recent W2′s

■60 days of current bank statements

■30 days of current pay stubs or commission check stubs

■If self employed-pay stubs or YTD profit and loss statement

■Monthly budget/financial statement signed and dated same day as P&S

Hardship information

■Hardship letter dated signed same day as purchase contract

■Any docs supporting the actual hardship

■Medical bills

■Child support or alimony payment information. Divorce decree or child support order

Mortgage & Other Relevant Property Information

■1st Mortgage statement

■2nd Mortgage statement if applicable

■Recent Real Estate tax bills

■Recent condo association bills if applicable

■Any recent water or sewer bills

Other Pertinent Documentation

■Authorization form

■Short sale disclosure

■Waiver of conflict if representing the buyer

■3 recent comps

■Listing agreement

■Offer/P&S

■Listing history

■Buyer proof of funds letter or Pre Approval letter

It is important to understand that the above documents are required for almost every short selling bank. There are also bank specific forms that, in most cases, must accompany the above. You may contact your negotiator or the bank directly to obtain the bank specific documents. "

If you're interested in doing a short sale, we are very experienced in them, so give us a call.

Parts of this blog are courtesy of the KCM Blog - Steve Harney

In the Spotlight

2011-12-02T21:38:00.000-05:00

This week, our company featured us in our weekly company newsletter and spotlight. We thought we'd share some of the interview so that you guys could get to know a little about us. At the end of the day we're just normal gals who enjoy life and love our job (and we happen to be good at it too - not bragging.....just saying :)

We think it's important that buyers and sellers pick someone with the right expertise and knowledge to advise them in this tough market, but in our humble opinion it's just as important to choose someone that you respect, trust, and get along with. Personality conflicts do occur in real estate relationships. Maybe by reading these questions and answers below you'll see what kind of people we are at heart and learn a little more about us.

Melissa and Rebekah Stephens:

A Home-Grown, High-Performance Real Estate Duo

Office: Stockbridge (but they work all of South Metro Atlanta - Henry County, Clayton County, Fayette County, South Fulton, Spalding County, Newton County, Rockdale County, Butts County, Coweta County, and more).

Years with BHGRE Metro Brokers: 1

Years selling real estate: 11 years combined

PERSONAL

Family: Speaking of family, we’re sisters and business partners!

Melissa: Married with 3 children – two daughters (ages 12 and 7) and one son (in his terrible 2’s).

Rebekah: Married with a very spoiled 2-year old black lab, Dooley.

Hometown:

We were born and raised just south of Atlanta our whole lives. In fact, we’re so homegrown that we graduated from the same high school that our parents did.

Education:

Melissa: Bachelor of Science in Business Management from Clayton State University.

Rebekah: Bachelor of Science in Integrative Studies from Clayton State University.

In my previous life, I…

Melissa: Started working as an administrative assistant for a top producing real estate agent at the age of 15 and went out on my own when I became licensed.

Rebekah: Worked as a relocation coordinator in the corporate office of another real estate firm throughout college and then obtained my license.

My idol:

For both of us, it’s our parents. They always put us first and raised us to be very strong, individual women who trust in God, work hard, and are honest. They’ve shown us how to love and live well.

Greatest accomplishment:

Melissa: Being a mommy. There’s just nothing like it.

Rebekah: Beginning a career in a depressed real estate market (2008), sticking with it, and becoming successful.

If I could do anything in the world, I’d…

Melissa: Learn to speak Spanish. I took three years in high school and two semesters in college and still can’t speak the language. It would be a fantastic asset for me.

Rebekah: Open a restaurant. I’ve envisioned it for years down to the menu, the décor, etc.

How do you relax?

Melissa: Laying in my hammock in my backyard or swinging on my front porch swing. Either way, I’m usually reading a magazine or book and sometimes enjoying a glass of wine.

Rebekah: I tend to spend a lot of time on the internet following several blogs (real estate, home decorating, cooking, etc). When I have a chance to relax, I kick back and catch up on my blogs.

Biggest pet peeve:

Melissa: Laziness! I can’t stand someone who won’t work hard or expects a hand out.

Rebekah: Rude or unfriendly people! Ugh.

Lesson learned in the last year:

For both of us, it’s that persistence and hard work pay off.

If we were to write an autobiography, the title would be:

“A Day in the Life of a Realtor: What You Didn’t Know About Real Estate.” We’ve always joked about writing a book comprised of all the funny, quirky, and weird things that have happened to us. At least once a week we say “that’s one for the book.”

Favorite movie or book:

Melissa: Call me sappy, but it’s “The Notebook” by Nicholas Sparks. It’s a book and a movie.

Rebekah: Same as Melissa – I guess we’re typical girls!

Favorite quote:

Melissa: “You only live once, but if you do it right, once is enough.” Mae West.

Rebekah: “We tend to forget that happiness doesn’t come as a result of getting something we don’t have, but rather of recognizing and appreciating what we do have.” Frederick Keonig.

I handle stress by…

Melissa: Taking some time off, whether it’s five minutes, an hour, or a day.

Rebekah: Still trying to find a way to manage stress, especially when related to real estate. I tend to freak out, but venting to my sister, mom, or husband normally helps.

If we didn't sell real estate, we’d…

Open a restaurant named after our grandmother and serve up her famous southern cooked food.

BUSINESS

Volume/Transactions in 2011: 44 transactions totaling $5.4 million (so far)

Primary focus in real estate: We feel that the smartest thing to do in this market is to diversify and that’s what we do. With the exception of commercial, we work most everything else including REO, re-sales, short sales, and buyers.

What trends do you see in the market? In south Metro Atlanta, we’re still seeing continued depreciation amongst our re-sale homes. One of the most recent instances is a re-sale townhome where average sold comp prices have dropped $10,000 in the last 45 days due to new foreclosure comps. We think it’s important to advise our sellers to be aggressive with their pricing from the start because there are still so many foreclosures coming to the market.

Best advice you can give your clients: We feel very strongly that this market presents the best time in history to buy a home, investment property, etc. Prices are at all time lows and interest rates are incredible but it won’t stay this way forever. We’ve made it our personal goal to educate everyone that will listen and encourage all of our potential buyers to buy. Our grandparents purchased their homes in the late 1950’s/early 60’s for more than what a buyer could purchase their homes for today.

Advantages of working on a team: The power of two people. We can play off of each other’s strong points. Melissa works better with some clients and Rebekah with others. We are also able to split the work load up. Plus, there’s always someone there to “have your back.”

What do you each feel your strengths are and how do they complement each other?

Rebekah: I’m more creative, technically savvy, and great with marketing.

Melissa: And I’m more detail oriented and great with negotiations.

&

Christmas Events in McDonough, Hampton, Locust Grove, Newnan, Senoia, Morrow, Jonesboro, Fayetteville, and Peachtree City!

2011-11-28T13:58:00.015-05:00

It's the Most Wonderful Time of the Year! Now that's a Christmas song that is true to us! We love the holidays!

Here's a list of Christmas events in the south Metro Atlanta area (Clayton, Coweta, Fayette, Henry, etc.) where you can enjoy some holiday cheer....and spread some of your own too! If you'd like to add a house to your Christmas tour of things to do....give us a call! Happy Holidays!

Henry County

Saturday, December 3rd - Annual McDonough Christmas Tree Lighting and Parade
Tree Lighting at 5:30, Parade Starts at 6:00pm. Park as close to the square as you can get and watch the parade as it makes it's way around.

Saturday, December 3rd, 10th & 17th - 11:00am-3:00pm - McDonough Square
Santa makes a stop at the McDonough Square for photos and chance for kiddies to tell him what they want.

Thursday, December 1st - 7:00-9:00pm - Hampton ParadeJoin us again this year for the annual Christmas at Home December 1 from 7:00pm-9:00pm! This year the parade will begin at Hampton First Baptist Church! There will be live reindeer, snow flurries, holiday music and pictures with Santa!! Kelly Lewis Browning Photography will be taking pictures printed with a keepsake. This event is presented by the Hampton Business and Merchants Association. For more information please visit http://www.hamptonbusinessmerchants.com/

Satruday, December 3rd - 9:00am-12:00 noon - Hampton, GA- Cookie Decorating with Mrs. Claus
Don't miss decorating cookies with Mrs. Claus on December 3 from 9:00am-noon! Children up to age 10 are invited to decorate cookies, which they will take home (unless they eat them first!) Pictures with Mrs. Claus are taken and printed for each child. This event is sponsored by the City of Hampton.

Saturday, December 10th - 4:00pm-8:00pm - Hampton, GA - Holiday Tour of Homes
Tour gaily decorated homes in Hampton during daylight or lighted in full splendor of the evening on December 10 from 4:00pm-8:00pm! This year includes directions to a neighbor specially decorated for the holidays, cost for the tour is only $10.00 per person! This is a Main Street Program event and will benefit the purchase of a historic plaque on the City owned building at 2 West Main Street.

Saturday, December 3rd - 10:00am - 2:00pm - Downtown Locust Grove - Annual Parade and Fun
The City of Locust Grove and the Locust Grove Better Hometown will sponsor their annual Christmas . . . in The Grove on December 3, 2011. This is a free event for children and adults and features a parade, stage entertainment, food, train rides, rock climbing wall, craft vendors and the arrival of Santa via the Locust Grove fire truck. Downtown merchants also participate through "open house" where you may visit their stores and shop for that special Christmas gift. Refreshments are provided in each establishment and merchants welcome your visit. The Downtown Development Authority will have a hotdog stand where you may purchase hot dogs and drinks. The festivities are from 10:00 AM – 2:00 PM.

Saturday, December 10th, 2pm - 6pm - A Heritage Christmas – at Heritage Park - McDonough, GA

Celebrate Henry County's Heritage and the beginning of the Christmas Season. The annual festival at Heritage Park begins at 2 p.m. and will feature caroling, crafts, hayrides, photos with Santa Claus and other beloved Christmas characters, local entertainment, cookie decorating and Elf School. Connecting Henry will be collecting new-unwrapped toys. Be sure to sign the patriotic banner and holiday cards for U.S. troops. The event concludes with the lighting of the Great Heritage Christmas Tree.

Fayette County

Saturday, December 3rd - Peachtree City's "HomeTown Holiday"
6:00 p.m. at The Fred: Musical Program includes holiday performances by Twilight Theater, Legacy Theater, and the Peachtree Wind Ensemble.

7:00 p.m. - Trail of Lights: Golf cart procession led by Santa to City Hall. The golf cart trail will be lit by luminaries.

7:30 p.m. - Tree Lighting at City Hall: Join Santa for the Christmas Tree Lighting Ceremony. This year, the City is able to offer 5"x7" photos with Santa for $1.00

Saturday, December 3rd - Fayetteville's Annual Christmas Tree Lighting and Parade
Parade at 4:30 - Park as close to the square as you can and watch the parade
Tree Lighting at 5:30ish
Carriage rides with Santa from 7:00-9:00
Free Hot Cocoa and Popcorn

Sunday, December 4th, 11th, and 18th - Complimentary Carriage Rides and Photos with Santa
Visit The Avenue Shopping Center (at the corner of Hwy 54 and 74 in Peachtree City) for carriage rides and photos with Santa from 1:00-5:00. The photos will take place at The Atlanta Bread Company within The Avenue complex.

Spectacular Christmas Lights at the Gaddy Residence in Fayetteville
898 Sandy Creek Road, Fayetteville

Nightly from Thanksgiving until New Year's Day - Dark Until 10:30ish.....These are some of the best residential Christmas lights ever! We take our family every year (multiple times) to this sweet home where the owners go all out with Christmas lights and decor. You can drive through on their u-ahaped driveway to view the lights and decor. Turn your headlights off to make the lights even more spectacular. There's no admission, however, they do take donations for Toys for Tots and they are having their annual Toys for Tots drive on Saturday, December 3rd. Bring a new, unwrapped toy, and donate it.

Sunday, December 4th, 4:00pm-8:00pm - Tyrone Christmas Tree Lighting and Photos with Santa
Shamrock Park on Senoia Road. Visit and take photos with Santa. Free Carriage rides by the lake. Cocoa and Cookies too!

Coweta County

Sunday, December 4th - 3:00pm - Newnan's Annual Christmas Parade

Park as close to the square as you can and enjoy the parade. It's always a treat!

Saturday, December 3rd - Senoia Christmas

4:00pm - Santa and Mrs. Claus are there to light the tree. There's pony rides, Santa's workshop, and a food court.
5:30pm - The parade starts....park as close to downtown as you can get and enjoy the parade.

Clayton County

December 2-18th - Festival of Trees and Lights -Clayton County International Park - Jonesboro, GA
Hundreds of families travel to the Clayton County International Park every holiday season, to see the Festival of Trees and Lights. The opening ceremony celebration on Dec. 2 will feature arts and crafts, face painting, live entertainment, hayrides, cake walks, gingerbread decorating, concessions and photos with Santa.

Saturday, December 10th - Visit with Father Christmas - Stately Oaks, Jonesboro, GA
Stately Oaks Plantation, 770.473.0197, historicaljonesboro.org
Children are invited to the Stately Oaks plantation, to visit with Father Christmas! There will be two separate tours, 9–10:15 a.m. and 10:30–11:45 a.m.

Friday, December 9th, 7:00pm - Yule Log Celebration - Morrow, GA

Reynolds Nature Preserve, 770.477.3766, claytonparks.com
Mark your calendars for the Yule Log Celebration, a unique holiday event taking place at Reynolds Nature Preserve. The annual, outdoor event begins at 7 p.m. with music, fun and refreshments. Guests will walk a candlelit path into the woods for a bonfire, and a search for the fabled Yule Log. This is a free event, with shuttle service from Babb Middle School.

Miscellaneous Events

Gift of Lights at Atlanta Motor Speedway - Nightly - Friday, November 18 - Sunday, January 1, 2012 - Hampton, GA

What: A Drive-Through Display of more than 1 million Christmas lights and hundreds of light displays at Atlanta Motor Speedway.

When: Nov. 18 - Jan. 1, including Christmas Day!

Admission: $15 per vehicle; Admission for buses is $1 per person with a minimum of $20. Buses must be under an 11 foot clearance. Payment is cash only.

New Hope Baptist Chuch's Annual Living Christmas Tree (A Play with Singing and a "Living Christmas Tree") - Fayetteville, GA
http://www.s164850723.onlinehome.us/dan/treetickets2011.pl

Click the above link for tickets to this annual tradition. Dates are below:

Wednesday, December 07th, 7:00pm

Thursday, December 08th, 7:00pm

Friday, December 09th, 7:00pm

Saturday, December 10th, 3:00pm (Matinee)

Saturday, December 10th, 7:00pm

Sunday, December 11th, 3:00pm (Matinee)

Sunday, December 11th, 7:00pm

&

How Much Should You Put Down on a Home?

2011-11-17T21:08:00.000-05:00

Like most questions, the answer is "it depends". Today, I thought I'd give you some things to consider.

Let's begin the discussion with loans that don't require Mortgage Insurance. The suggestion is to borrow as much as you can afford. As an example, borrowing $310,000, as opposed to $300,000, will increase your mortgage payment by about $51 at 4.5%. Recognize that by doing so, you will have $10,000 in the bank. It is my experience that it is easier to find $50 more every month than it is to save $10,000. Even if you had the discipline to set aside the $50 monthly, it would take you 200 months to re-accumulate the $10,000 in principal (longer with lost interest).

Understand too, that the interest paid on the extra money borrowed is tax-deductible. In a 25% tax bracket the $51 additional has a real cost of about $38!

Having the $10,000 liquid has other potential advantages as well:

1. If rates go up in the future, you could potentially make more interest than you are spending.

2. If you can avoid using credit cards for furniture, home improvements, etc., you can save a bundle on those non-tax deductible interest rate costs.

3. In a world where home values have declined, the more you borrow, the less you have at risk. You transfer the risk of the future value of the home to the lender.

Now, many borrowers today will need some sort of Mortgage Insurance, whether it's a Conventional Loan with less than 20% down or an FHA Mortgage. These borrowers should sit with their loan officer and run the numbers because the cost of the Mortgage Insurance can vary based on loan-to-value and other factors. Examine the costs and the relative benefits.

Blog article provided by KCM Group, Steve Harney

Best Time to Buy a Home is Now!

2011-11-16T10:31:00.000-05:00

The PRICE Is the Same, But the COST Is Less

There is more and more research coming out showing that it makes great financial sense to purchase a home today . Whether it be rent vs. buy ratios, income-to-price ratios or income-to-mortgage payment ratios, purchasing a home right now is a bargain compared to historic norms. Now we want to look at the COST of a home today compared to pre-peak prices.

According to the most recent S&P Case Shiller price index, residential real estate values have returned to 2003 1Q PRICEs. That, in itself, says something. However, when you factor in mortgage rates, the case for buying a home today becomes even more compelling.

In 2003, 30 year mortgage rates stood at 5.88%. Today, they are 4%. How does that impact the actual COST of a home? On a home purchased for $250,000, here is the difference in monthly cost:

That means you save $285.30 a month, $3,423.60 a year and $102,708 over the life of a 30 year mortgage! You buy the home for the same PRICE but the COST is over $100,000 less.

Bottom Line

This is why so many financial advisors are saying that this may be one of the greatest times in history to purchase a home.

We agree, see our blog below about prices in the Clayton County, Henry County, and Fayette County.

If you think it's time for you to buy a home, give us a call.

Real Estate in Numbers (3rd Qtr) - Henry County, Fayette County, Clayton County

2011-11-12T23:39:00.002-05:00

Call us real estate geeks, but we love analyzing the numbers when it comes to real estate. Not only do we find it to be interesting and very telling, but it helps us stay current and informed as to what's going on in our local market. There's no way we could advise our clients if we didn't compile reports like this. Do most agents spend time doing their "homework"? Probably not. But we do! Take a peek at the info we've put together -- it's pretty interesting!

A few things we want you to realize about the Clayton County, Henry County and Fayette County markets -

Prices have dropped approximately 9% in all three markets since this time last year.
Clayton County has seen a slight increase in the "average sales price" category when it comes to comparing 2nd quarter to 3rd quarter of this year. WHAT?!?! I know what you're thinking ... after months and months and months of watching the crazy drop in prices, I couldn't believe it either. In fact, I went back and ran the numbers again to make sure I wrote down the right statistic. Believe it folks! But....do realize that the average sales price is still 8.60% lower than this time last year.
Henry County is hot when it comes to selling homes - 3rd Quarter 2010 there were 655 homes to sell and in 2011 that number came up to 833. There's always a catch though... the average price has dropped almost 10% since this time last year. Good for buyers, bad for sellers.
While Fayette County has experienced depreciation since 2010, they're certainly holding their own this year. Looks like the market may be stabilizing in Fayette (fingers crossed!) The average sales price has stayed pretty much the same throughout this year, no continued depreciation this year.

Have specific questions about your county, city, or subdivision? Feel free to email or call us! We'd love to help!

Open House at Monarch Village This Sunday!!

2011-11-09T11:07:00.001-05:00

Two Beautiful Homes in Monarch Village
Open this Sunday, November 13th, 2:00-5:00

Visit and have a Chance to Win $1000!!
(One visitor who visits a Metro Brokers open house on Sunday will win $1000)

214 Monarch Village Way

$249,900

Don't miss this beautiful home! 4BR/3.5BA, island kitchen with granite countertops and stainless steel appliances, formal dining room, family room, master on main, full finished basement offering an office, theater room, and rec room with wet bar. Great deck for entertaining! It's worth seeing! We can't describe it all here!

253 Monarch Village Way

$129,900

Looking for a Steal? This is it! 3BR/2.5BA with loft area, formal living room & dining rooms, big family room with built-in bookcases, large island kitchen with breakfast area and all appliances, nice master suite, 10' ceilings, hardwood floors, and privacy fenced backyard.

About Monarch Village: Monarch Village is an awesome master planned community in one of Henry County's most convenient locations! I-75, I-675, shopping, dining, and entertainment are all within minutes away! The community offers a clubhouse, lake, walking trails, tennis courts, playground, water park (yes, a water park, not just a pool), sidewalks, and streetlights. There's even an elementary school and day care center within the community. Come see for yourself!

Directions: I-75 South exit 228 or I-675 exit 1; Right on Hwy 138; Left on Speer Road; Left on Walt Stephens Road; Right into Monarch Village Subdivision; Continue Straight around the first roundabout to 214 Monarch Village Way on the Right; after visiting this fine home, continue straight to the 2nd roundabout; go 3/4 the way around and Right to continue on Monarch Village Way; 253 Monarch Village will be on Your Left.

Real Estate as a Long Term Investment.....It's a Good One!

2011-11-05T23:00:00.000-04:00

Put Your Money in Real Estate! It's Our Personal Philosophy! We know it's a down market, but if you can stomach the last few years, and likely the next two to three years, Real Estate is a Solid Investment! It beats out the other options. See the graph below....need we say more?

Pick the Right Agent....The One Who Can Get the Deal to the Closing Table!

2011-10-08T22:49:00.002-04:00

The National Association of Realtors (NAR) released their Existing Sales Report two weeks ago and in the report they discussed a troubling trend: cancelled contracts are increasing dramatically. NAR defined the issue:

"Contract failures – cancellations caused largely by declined mortgage applications or failures in loan underwriting from appraised values coming in below the negotiated price."

NAR explained that 18% of all contracts were cancelled in August. This compares to 16% last month and 9% in August of 2011.

The percentage of cancelled contracts has doubled in the past year!!

It is extremely important that both buyers and sellers pick the right real estate professional to assist them with their real estate needs.

BUYERS

Make sure your agent can not only help you find the home of your dreams but also find you professional assistance with all aspects of the transaction (mortgaging, title, etc.)

SELLERS

Realize that your agent must sell the home twice:

1.to a qualified buyer

2.to the bank (through the appraiser).

The second sale may be more difficult in this market than the first.

Bottom Line

It is imperative in this housing market that both buyers and sellers use a true real estate professional to guarantee that the deal will actually reach the closing table. We happen to know a good one....well, actually two good ones. : )

Article courtesy of KCM Blog - Steve Harney

Short Sale vs. Foreclosure....A Short Sale Always Win!

2011-10-04T10:58:00.000-04:00

Today's ever changing real estate industry has brought upon some very challenging questions from our clients. We as counselors, want to put forth the best, non-emotional advice that we can, in hopes that we can help our clients and their families navigate the rough waters of the short sale process.

The most prevalent question and one that continues to permeate the industry is:

"Why should a seller go through the short sale process rather than letting their house be foreclosed upon?"

While we cannot speak to every client circumstance, we can say one thing with complete conviction. In almost all instances in which a potential seller is contemplating whether they should short sell their house or let it go through the foreclosure process, a short sale is the better option. The following are examples to consider:

Example A- Short Sale

Mr. Smith owns a home in which he has a mortgage balance of $220,000 and a current market value of $150,000. Mr. Smith has elected to short sell his property. His Realtor successfully obtains a buyer who puts forth an offer price of $120,000 (80% current market value according to Realty Trac Foreclosure Report 5/26/2011). After reviewing the buyers offer and the financial hardship information from Mr. Smith, Mr Smith's bank agrees to accept the short payoff of $120,000 which would leave a deficiency balance of $100,000.

The transaction closes and is final. Mr. Smith then pulls his credit report 30 days after the transaction takes place. On the report he notices that the mortgage trade line states "Mortgage debt was settled for less than full" and the balance on the mortgage is $0. Mr. Smith is now on the road to financial recovery.

Example B- Foreclosure

For the ease of illustration we will use the same value and mortgage debt amounts as in Example A. However, Mr. Smith has elected to forgo the short sale process and let the bank foreclose on the property. The bank holding his mortgage facilitates the proper legal procedures to foreclose on the property, all of which are costly. Mr. Smith is notified and his property foreclosed upon of which is taken back by the bank to sell as an REO.

Six months later, the bank finally sells Mr. Smith's home only they sell it for $90,000 (60% of current market value according to Realty Trac Foreclosure report dated 5/26/2011). Remember, as a short sale, the home would have sold for $120,000 keeping the deficiency to $100,000. In addition to the deficiency now being $130,000, the bank has elected to add on legal costs of $15,000 and asset preservation costs of another $5000 for a total deficiency liability of $150,000. Mr. Smith pulls his credit report 30 days after being notified that the bank has sold his property and of his liability.

On the report he notices that the mortgage trade line states "Foreclosure" and the balance is $150,000. Because of Mr Smith's choice to choose foreclosure vs. short sale his road to financial recovery has taken a major detour. He not only has a foreclosure on his credit report but know has a much larger deficiency balance in which the bank, in most cases, will report on his credit report as a balance owed.

The Best Option is clear

While the financial and credit advantages are clear when choosing a short sale over a foreclosure, other advantages are sometimes overlooked. The most important of all of them is maintaining the seller's dignity and peace of mind. We have heard too many stories of families having to leave their homes because of a Sheriffs order or some other type of legal action. The short sale process alleviates this negative social impact. The process puts the control back in the seller's hands so that they can get back on the road to financial recovery and start providing for their families. In the battle of the two evils, a short sale always wins!!!

Rebekah and I have handled many shorts sales over the past few years. They are becoming more common and mortgage companies are generally becoming better at them and more open to them. If you need a short sale expert in Metro Atlanta, please don't hesitate to call or email. We'll be happy to evaulate your situation and help you through this daunting process.

Courtesy of KCM Blog - Steve Harney

13,780 Homes Sold Yesterday!

2011-09-26T11:50:00.000-04:00

To all those who have declared the real estate market dead, we want you to know that over 13,780 houses sold yesterday, 13,780 will sell today and 13,780 will sell tomorrow.

That is the average number of homes that sell each and every day in this country according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report. NAR reported that sales had increased 7.7% over the month before and 18.6% over the year before. According to the report, annualized sales now stand at 5.03 million. Divide that number by 365 (days in a year) and we can see that, on average, well over 13,000 homes sell every day.

We realize that these numbers are below the record for homes sold in 2006. We also know that we may never see those numbers again (and that is probably a good thing). But to say that the current real estate market is dead or that houses are not selling is totally inaccurate. We have over 13,000 pieces of evidence to prove that.

In addition, we closed four last week ourselves! We know real estate is selling and we know who can get the job done for your Metro Atlanta Real Estate needs.....US!

Article Courtesy of KMC Blog, Steve Harney

For the Love of ...Purple!

2011-09-12T00:50:00.000-04:00

We're working with several buyers right now and we've been viewing some pretty interesting houses. Apparently the owners of the homes below didn't get the memo about neutralizing their homes before putting them on the market. Today The Stephens & Stephens Group would like to take time to appreciate the color purple!

A little color never hurt anyone!

We Remember September 11th - God Bless America

2011-09-10T17:12:00.000-04:00

Terrorist attacks can shake the foundations of our biggest buildings, but they cannot touch the foundation of America. These acts shatter steel, but they cannot dent the steel of American resolve. America was targeted for attack because we are the brightest beacon for freedom and opportunity in the world. And no one will keep that light from shining.

President George W. Bush

September 11, 2001

We're proud to be Americans. We will always remember this terrible day in American history. Our prayers and thoughts are with the fallen and their families on this day.

5 Great Reasons to Sell Your Home Today!

2011-09-06T09:54:00.002-04:00

We are often asked "Is the time to sell my home?" The answer to that question is based on what your families' goals are. If you don't need or want to move for a few years it might make sense to wait for the housing industry to recover and prices to appreciate. However, if you wish to move within the next six to eighteen months, it is probably better to sell sooner rather than later. Here are five reasons why:

Your House Will Get More Exposure Now Than the Winter

Housing sales usually level off in the summer and then regain momentum in September and October. The spring buyers' market has passed. Don't miss the early fall market. It has consistently outperformed the winter season.

Distressed Properties Will Impact Prices

Distressed properties (foreclosures and short sales) on the market will increase this fall and winter. This will put tremendous downward pressure on prices for at least the next 12-18 months. Get your home sold before they become your competition.

Mortgages Will Become More Difficult to Attain

Lending standards are continuing to tighten. There is legislation currently being considered that will make it even harder for buyers to qualify. Less demand will equate to lower prices.

It is the Perfect Time to Move-Up

With prices where they are and interest rates at all time lows, there may have never been a better time to move-up into your dream home. If you move into a more desirable home now, you will be in position to gain larger equity as prices eventually appreciate.

You Get to Move On with Your Life

Probably the most important reason to sell is so you can get on with your life. You are considering selling for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you are thinking about moving . Are these reasons really important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Article from KCM Blog - Steve Harney

We Love This Townhome...and You Can Own it Cheaper Than You Can Pay in Rent!

2011-08-31T22:17:00.000-04:00

Welcome Home to:

3893 Princeton Lakes Pass, Atlanta, GA 30331

The Best Part...It's Only $84,500!
The community is gated and the association fee includes yard maintenance. It's truly a maintenance free lifestyle and a commuters dream! Major interstates, shopping, and dining are literally less than 5 minutes of this home. The home features 2 bedrooms/2.5 bathrooms. Both bedrooms are spacious with walk-in closets and each have their own bathrooms (it's like having two master suites). A foyer welcomes you into the home and leads you into a very open floorplan with a large and sunny living room, spacious dining area, and kitchen with all appliances. There's hardwood floors throughout the main level. A cozy deck is perfect for morning coffee, relaxing for dinner, or entertaining. Other features include smooth ceilings, a laundry room with cabinets, one car garage with automatic opener, and covered front porch.

To see more photos and info click the link ----- http://www.princetonlakespass.info/

We had a lender draw up some numbers on this house and it's incredible! You can own this home for cheaper than rent....whether it's a conventional loan, FHA loan, or VA loan the approximate montly payment is between $600-$650 including taxes and insurance. This is a steal!

To set up a showing, don't hesitate to call or email.

Discounted Competition is About to Enter the Market! Sell Your Home Now!

2011-08-26T16:25:00.001-04:00

If you have your home on the market and it hasn't sold yet, you should get real serious about selling it. If you need to sell your home, put it on the market right now. Don't wait! Look at the graphic below and you'll see why! We're not making this stuff up....it's real!

Graphic courtesy of KCM Blog, Steve Harney

Real Estate in Numbers: Clayton, Henry, and Fayette County - # of Sales/Average Sales Price

2011-08-25T23:42:00.001-04:00

In reviewing statistics from the Georgia MLS system, I put together a little graphic that reflects the changes in the market for the first and second quarter of 2011. To the right of the chart, I show what the average sales price was for each county for the second quarter of 2010 in comparison with the second quarter of 2011 and as you will notice, the Clayton, Fayette, and Henry County real estate market have all experienced depreciation since last year. If you review the quarterly numbers for 2011 so far, you will see that our market values are still continuing to decline with the exception of Fayette County as it experienced a very slight increase in average sales price; however, the county has still depreciated from 2010 to 2011. The good news is that the number of sales for the second quarter increased in all three counties from the first quarter to the second, although that's somewhat normal coming out of the winter months and going into the spring/summer. We expect to see further depreciation for the remainder of this year so if you're looking to sell your home and it's a must, then you may want to consider selling now before the numbers drop any lower!

Crime, Schools, Registered Sex Offenders - Henry, Clayton, Fayette,etc.

2011-08-24T00:04:00.000-04:00

When a buyer identifies a property that they are interested in purchasing, they often want to research the subdivision/neighborhood before moving forward and ask question such as

"Are there any sexual offenders in the area?"
"What is crime like in this area?"
"What are the local schools like? Are they good?"
"Are there any children in the subdivision that my kids can play with?"

A smart buyer looks into these things rather than just purchasing any house that they fall in love with. While some of these things may be more important to one buyer than to another - it's always smart to do research before pursuing a property... but how? Where do you find this information, especially if you're not familiar with the area? Here are a few suggestions...

Local Police Department Websites: Check your local police department's website for crime information. Some may provide crime maps and crime statistics. If they don't have information online, call the local police department. Here are some links that you may find helpful:
              Clayton County: Request for Crime Statistics
              Fayette County: Fayette County Crime Map
              Henry County: Henry County Crime Map

Sex Offenders: There are several websites that provide information on registered sex offenders and some of the crime maps above include this information. The following is a link to the GA Bureau of Investigation's Georgia Sex Offender List: Georgia Sex Offender List via Georgia Bureau of Investigation

Schools: There are many ways to research local schools. You can start on the internet and if it's really important to you, you can visit the school itself and set up a meeting with the principal to ask questions, tour the school, etc. Check the Georgia Department of Education's website for test scores, check out the individual school's website to see what they have going on and see photos of recent events, search for parent reviews online (after all, parent reviews give us a behind the scenes look (with a grain of salt of course!). Here are some links that may help you research the local schools:
              Georgia Department of Education
              School Reports via GA Dept. of Education
              Atlanta Journal Constitution Schools Guide

              Clayton County Board of Education
              Coweta County Board of Education
              Fayette County Board of Education
              Henry County Board of Education
              Rockdale County Board of Education

Neighborhood/Subdivision: Unfortunately there's not a website that you can visit to give you stats on individual subdivisions and neighborhoods. If you want to know certain things about it, you'll have to check into it yourself. Your Realtor should be able to help you with some things such as information on the homeowner's association and fees, covenants and restrictions, etc; however, it's always recommended that a buyer drive through a subdivision of interest several times and at different times of the day to make sure it's a place that he/she wants to live. It may seem like a quiet, quaint subdivision on a Monday afternoon but what is it like on a Friday or Saturday night? Are there cars parked on the street all night? It may be helpful for you to walk the neighborhood on a weekend or evening to chat with neighbors out walking, working in their yards, etc. Neighbors will always be quick to give you the scoop in the subdivision!

Don't Wait to Buy! Seriously!

2011-08-19T09:32:00.001-04:00

Did it make sense to wait? We think not! Don't listen to everyone saying prices are going to go even lower.....they might....but they might not. We are very close to the bottom in our opinion. We may see a slight bit of depreciation over the next 6-12 months from the onset of "shadow inventory" (the foreclosures and pending foreclosures that will eventually hit the market), however, if interest rates go up you don't save! Enough said? Call or email if you want to discuss this more. Otherwise, get to house hunting....immediately! There's never been a better time.

Graphic courtesy of KCM Blog, Steve Harney

For Sale By Owner? NO, NO, NO.....Read Why!

2011-08-15T15:48:00.001-04:00

Don't Try to Sell Your Home Yourself! This is what we believe....and apparently so does the founder and former owner of "By Owner." Take it from him, hire a Realtor (and a good one, like us). See the article below:

ForSalebyOwner.com Founder Uses Agent to Sell Home

The founder of a popular for-sale by owner website used a real estate broker to help sell his 2,000-square-foot, two-bedroom New York apartment after it lingered on the market for six months. Colby Sambrotto, the founder and former chief operating officer of ForSalebyOwner.com, tried to sell the property himself by listing it online and through classified ads, but after six months of it sitting on the market, he sought the help of a real estate broker.

Broker Jesse Buckler told Sambrotto the condo was priced too low and wasn’t attracting the right buyer for the condo.

"At first he wouldn't let me increase the price," Buckler said. "I told him I know what I am doing—the market is picking up."

The condo soon attracted multiple offers and ended up closing recently for $150,000 more than the original asking price.

Source: “DIY Guru Gets Broker Help,” The Wall Street Journal (Aug. 3, 2011)

What If You Could Buy Shoes......

2011-08-11T11:25:00.000-04:00

What if there was a shoe store that had:

■ An unparalleled selection of shoes of every size, color, and price range

■ The shoes were discounted 30% or more

■ You had a credit card that would finance the shoes for 30 years at 4.5%

How many shoes would you buy? My bet is there would be a line around the block. Well, today, real estate is like that shoe store (incredible selection, terrific bargains and excellent financing terms). But there's more....

■ Shoes go in and out of style. Homeownership is still the American Dream.

■ Shoes are worth less once you wear them. Homes will appreciate in value over time.

■ Shoes get disposed of. Homes are lasting.

And while many can recount memories created in certain shoes, everyone can remember their first home, their first family gathering, the countless holidays shared. There is also the ability to decorate to your tastes, the stability (and lower crime rate) in homeownership neighborhoods and the higher level of education achieved by kids who grow up there.

If you'd stand in line to buy shoes, what’s stopping you from exploring a home? Despite some media perceptions, there is mortgage money available with reasonable down payment requirements at extremely low rates...talk to a loan officer. There are some great deals out there with short sales, foreclosures and regular transactions also!

Happy Shopping!

This blog is courtesy of KCM Blog, Steve Harney

Real Estate Marketing at it's Finest!

2011-08-05T13:35:00.000-04:00

Do not judge a book by it's cover...
but do judge a Realtor by the sign that they put in your front yard.

We showed properties today and pulled up in the driveway of a nice home to find this...

And to think that we preach to our clients about the value of curb appeal. What would they say if we stuck this pathetic little sign in their yard after talking to them about curb appeal and first impressions?.

Disclaimer: Agents are independent contractors of the brokerage firm that they work under. This funny
little sign is not a reflection of Solid Source Realty as a whole and is just an instance of poor
marketing on behalf of the listing agent whose identity has not been revealed.

Multiple Offers - Highest and Best - OH MY!

2011-08-03T10:10:00.000-04:00

In our market, many buyers find themselves in a "multiple offer" situation, or a "highest and best" situation. Generally speaking, for a buyer, this situation can be emotional and upsetting and sometimes just downright confusing. In this blog I hope to shine some light on the "situation" of multiple offers.

WHO

Most "highest and best" offer situations are called for by a bank owned property, commonly known as a foreclosure or REO property. I have seen some individual sellers do this when they have multiple offers, but more often this is a foreclosure procedure.

WHAT

A "highest and best" situation occurs when there are multiple offers on a property. There can be as little as just two offers up to as many as one can imagine. We've seen situations where there are 8-10 offers if a property is really hot.

WHY

While it is said by many that mutiple offers sitatuions are a scam or an unfair thing, the principle behind this procedure really isn't a bad one. When sellers have multiple offers they generally feel that it's fair to offer all the parties who have made offers one final chance to give their best offer. Most buyers do not make their best offer as their first offer. We all want to negotiate! If you found a home listed at $100k for example, but wanted to make an offer, you generally aren't going to offer the full 100k right? You'll probably offer 90k hoping to settle somewhere in the middle. You may even pay full price for the house if you like it enough right? If the seller just looked at everyone's initial offer a lot of people would be disappointed. To give you a fair chance at giving your best offer when there are multiple offers a seller will let you know that they are requesting your "highest and best" offer. It's a win-win for both the seller and the buyer. If it works out right the seller gets the best price for the house and the buyer gets the house they want.

OTHER NOTES

Just a few other general pieces of information about "highest and best" situations:

1. You usually have 24-48 hours to submit your best offer. Pay attention to the deadline; once it has passed, it's done.

2. Try to keep the emotion out of it. Make a logical decision about your "highest and best" offer. Don't offer too much if the house isn't worth it just to win the offer if you know you shouldn't be paying that much for it. Sometimes competitiveness gets the best of buyers. Likewise, don't be silly and stick with a lower bid if you know the house is worth more, or if you know you'll be heartbroken if you don't win it out.

3. There are no guarantees. Just when you think you've made the best offer, someone makes a better one. It's incredible what buyers do in this market, especially on houses that are great buys. It's not uncommon to see houses sell for over list price. We've had several of these situations this year. One home was listed for $82,000 and ended up with a high bid of $91,000. One was listed for $399,900 and ended up with a high bid of $435,000. It happens on the low end and the high end! It's a crazy market.

4. DON'T GET MAD AT YOUR REALTOR! Haha - I just had to put that one in CAPS. We can't control these situations. We can't predict what other buyers are going to offer. We also can't really advise you as to what a winning bid might consist of or how high we think you should go. Just work closely with your Realtor to make your best offer. If you made the best offer you believe you could have made, win or lose the bid, you can't be mad.

5. There are other things to negotiate besides just price. Keep in mind there are several things to negotiate when you are negotiating a highest and best offer. While price generally speaks the loudest, closing costs, closing date, the amount of earnest money, and the type of financing (just to name a few) all count for something. For example, if Buyer A offers $3,000 more in price than Buyer B, but doesn't want to close for 60 days and wants $5,000 in closing costs then Buyer B may be the more attractive offer (assuming Buyer B wants to close sooner and asks for less in closing costs).

6. If you see a house you like, go view it asap! Don't wait! Get your offer in on it as fast as you can! Sometimes this whole situation can be avoided if you just act on it before every one else does.

We are very seasoned in highest and best/multiple situations. If you find yourself in one, we hope you have a good Realtor to guide you through the process. If not, give us a call or email. We're happy to help.

Why You Need Us....As Your Negotiator!

2011-07-30T13:08:00.000-04:00

Whether you are looking to buy a home, or sell a home, you need us! It's a fact! Only 75% of offers made actually make it to the closing table. Some contracts are cancelled out by buyers changing their minds, some for inspection issues, some have appraisal issues, etc.

While we aren't miracle workers, we are very serious about our job and try to get every contract to the closing table. In fact, if we may brag a little, 97% of our contracts in the last year have made it to the closing table. This goes for all the buyer contracts we write and the contracts we receive on our seller's homes. Trust us....if there's any one who can make a real estate transaction happen, it's us!

Graphic is courtesy of KCM Group, Steve Harney

We Love Our Clients!

2011-07-23T21:08:00.001-04:00

Many of times the people we work with become more than just clients... they become friends! When I was in college, I waited tables at a local restaurant and I loved it because of the opportunity to meet new people. Many of our customers came in often - some came once a month, some came twice a week, and some came daily (believe it or not, some actually came multiple times a day!!). In some ways, our customers became our friends. I think that's one of the things that we love most about real estate is the opportunity to meet new people, get to know them, and help them with one of their biggest investments. We don't want to just be someone's real estate agent on a transaction. We want to be their life long Realtor, trusted advisor, and friends (well, I can think of a couple that I don't really want to be friends with... just being honest!). I recently closed a transaction with a couple in which I sold their daughter and son-in-law a house last year. There's nothing better than working with good people and getting to know their whole family! The image below is a note that they gave me at closing. Real estate isn't always the easiest job in the world. It can be extremely stressful and frustrating at times. Especially in a difficult market, it's the little things like this that make you believe that you have the best job in the world... helping people. Real estate is not a sales job. In many ways it can be compared to social services -- we're helping people with a huge investment. We're not trying to sell or force a house on you like a used car salesman might. We're helping, assisting, and advising! As Steve Harney might say, we're doing so "with the heart of a teacher." This note made me smile! Thank you Tony & Gayle! :)

We Love... 214 Monarch Village Way

2011-07-05T19:17:00.002-04:00

We Love 214 Monarch Village Way!

You might call us biased, but we have a fabulous listing in Monarch Village that we want everyone to know about! In fact, this particular property has long been a favorite of ours and chances are, if you've driven through this community, you've taken note of this great property! We asked the owners of the property to give us a few reasons as to why they've loved calling 214 Monarch Village home over the past few years. Before we get into that, let me tell you that Mr. and Mrs. 214 Monarch Village Way are the original owners of this home and they have loved it, cared for it, upgraded it to the max, and now they're offering it for sale at $259,900 (recently reduced from $274,900). Here are some of their favorite things:

Our basement is phenomenal and we finished to match the upstairs. It’s not a basement; it’s a part of our home that is used as much as the top floors. The bar and pool table area feel like a pub and are large and great when we entertain, the comfortable home theater has all of the bells and whistles and is used almost daily, and the home office is open and spacious.
If you enjoy getting compliments from your neighbors and people outside the community, then you will enjoy this home. The landscaping is established, looks professionally maintained and the exterior design is constantly complimented with people even stopping in the middle of the road to admire. When friends and family come inside, the compliments continue with remarks like: “Love the kitchen and the granite with the tin-look backsplash”, “The basement is beautiful and the tile is awesome”, “Your home is so comfortable and I love the colors”

Our home is in a great location being centrally located on the south side of Atlanta. We shop and dine in McDonough & Stockbridge (Henry County), Jonesboro & Morrow (Clayton County), Fayetteville (Fayette County) and easily travel to Atlanta in less than 30 minutes. More locally, we really enjoyed having the elementary school close by and all of the community amenities, including the waterslide and tennis courts.

The outside decks and wrap around front porch have been great for entertaining. The large deck is great for parties and has seating for everyone. The smaller deck has a perfect view of the Lake Spivey fireworks (which rival some of the best in Atlanta), so it’s a yearly event at our house.

Open House - Sunday, July 10th from 2:00-5:00pm.

214 Monarch Village Way, Stockbridge, GA 30281

Offered at: ~~$274,900~~ $259,900

4th of July Events in McDonough, Stockbridge, Peachtree City, Newnan, Conyers, Atlanta, etc!

2011-06-29T01:18:00.001-04:00

Happy 4th of July!

Things to do in Clayton County, Coweta County, Fayette County,
Henry County, Rockdale County and Atlanta!

"You have to love a nation that celebrates its independence every July 4, not with a parade of guns, tanks, and soldiers who file by the White House in a show of strength and muscle, but with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness. You may think you have overeaten, but it is patriotism."

-Erma Bombeck

Starlight & Fireworks at Panola Mountain State Park

2600 Highway 155, Stockbridge, GA

July 2nd at 7:30pm

Listen to whippoorwills & owls as fireworks shower Atlanta's skyline.

Bring your own flashlights, refreshments & comfortable clothing!

$10 plus $5 parking

Fourth of July Ice Cream Social

McDonough Square

July 4th at 7:00pm

The City of McDonough will hold it's fifth annual 4th of
July Ice Cream Social in the Square Park

Georgia Independence Day Festival at Nash Farm
4361 Jonesboro Road, Hampton - July 3rd & 4th
Two nights of family fun starting at 3pm to Dark!
Fireworks at Dusk! Scenes of the Revolution, Live Colonial Music, Dancing,
Festival Foods, Living History,Kids Zone, Strolling Actors, Shopping, Pony Rides,
Face Painting, Rock Wall & More!

4th of July Parade in Peachtree City

Peachtree City, July 4th at 9:00am

Peachtree Parkway South on a route from Village Green to McIntosh Trail
and ending at the Recreation Complex & Huddleston Elementary on McIntosh Trail
Grand Marshal Matt Stinchcomb (former UGA and NFL football player,
GA native & Peachtree City resident

4th of July Weekend at "The Beach"

"The Beach" at the Clayton County International Park

2300 Hwy 138 SE, Jonesboro, GA 30236

Monday July 4th, 10:00a-8:00pm, $10/person

Live music entertainment by Felicia & Friends and the 911 Band

Fireworks display at dusk!

4th of July Parade in Newnan
Newnan at 6:00pm
Parade will start at the city park at the corner of Temple Avenue and Jackson Street
and continue down Jackson, through the Court Square and out LaGrange Street
to conclude at Newnan High School.
Fun, festivities, children's activities, entertainment, and fireworks at dusk
will follow at Newnan High School's Drake Stadium

Conyers Fabulous 4th Festival Presented by B98.5
Georgia International Horse Park in Conyers, 5:00p, Free Admission!
Entertainment, children activities, military displays, arts, crafts, vendors, car shows,
and a large firework display at dark! Concessions offer hot dogs, funnel cakes, ice cream, and
other festival food! Lots of entertainment: Jordan Rager Band, Air Dog Show, Patriotic Program,
The Rockingbirds, & More!

Lenox Square Mall Fireworks in Atlanta
3393 Peachtree Road NE, Atlanta 30326
One of the largest firework displays in the Southeast with live music by former
American Idol, Diana Degarmo, and country music star, Trace Adkins
Festivities start at 6:00p and wrap-up around 10:00p

Stone Mountain Laser Show & Fireworks
Hwy 78 E, Stone Mountain, GA 30087
July 2nd, 3rd & 4th
Firework show following Stone Mountain's famous Laser Show
$10/car, arrive early on the 4th as they normally reach park visitor capacity

Window of Opportunity for Sellers?

2011-06-22T15:47:00.001-04:00

There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.

Why renewed downward pressure?

Any item's price is determined by 'supply and demand'. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.

Celia Chen, of Moody's Analytics explains:

"Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market".

The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:

"Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began."

Banks are now correcting these errors.

There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wire reported:

"Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off."

They went on to quote RealtyTrac CEO James Saccacio:

"...lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory... Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”

What will this mean to home prices?

As this inventory comes to market, it will impact prices in two ways:

1.It will provide discounted competition for buyers

2.It will impact the appraisal values of all homes in the area

Again, we quote Celia Chen:

"It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up...By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…

House prices will founder until early next year and start rising in earnest at the end of 2012."

Bottom Line

There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.

Article from KCM Blog - Steve Harney

Guitar Shaped House in Fayetteville, GA

2011-06-13T19:34:00.000-04:00

I browse new listings in the MLS system on a daily basis in search of my clients' dream homes. Today I came across a new listing that really caught my eye but doesn't really fit any of my clients' idea of "the perfect house"... a guitar shaped house in Fayetteville, GA. Don't believe me? Check it out...

This house was built by the country western singer/songwriter, Elvis Carden. One website states that it took 16 years to complete and was the inspiration for his album "Living in an Old Guitar." (Literally?) The current owner inherited the property and has it listed with an asking price of $160,000 with a note that it needs complete rehab. If you do a quick Google search for Guitar House Fayetteville, GA, you will find that this home has been featured on many websites.

Ground View (old photo):

Google Map View:

If cookie cutter homes aren't your style, you may be interested in this one! One thing's for sure, not many people can say that they live in a guitar house!!

Real Estate Ring of Death in Metro Atlanta (Including Clayton, Henry, Fayette & Coweta!)

2011-06-11T00:11:00.000-04:00

If you live in the Metro Atlanta area, chances are you can probably think of a half dozen subdivisions that
were developed and then came to a halt when the market came crashing down. Some of these developments have no homes built, some are partially built, and some only have a couple of homes with many vacant lots. The local news just ran a story titled "Real Estate Expert Dubs Area 'Ring of Death'' in which a local real estate expert, Steve Palm of Smart Numbers llc, speaks about all of these "ghost developments." He explains that there is a circle, or "ring" if you will, around the heart of Metro Atlanta that's new construction market will never return and the unfinished subdivisions will likely never be rebuilt.These counties include: Paulding, Carroll, Douglas, South Fulton, Clayton, Henry, Newton, Barrow and parts of far east Gwinnett, Hall, and the north Cherokee. While Palm does include Fayette, Coweta, and Forsyth in his ring of death, he does acknowledge that their new home market is stronger than the other counties and will recover quicker once the market demand comes back.

For the entire article and video, visit: http://www.wsbtv.com/news/28100024/detail.html

Gas Prices Around Town: Fayette, Coweta, Clayton, Henry, Butts Counties & More!

2011-06-06T22:05:00.000-04:00

Photo Source

This is a real estate blog, so naturally, all of the content should be real estate related. Not this post. This post is about gas prices! When we come across great information, we want to share it. There's a website (and also an app for smart phones) called GasBuddy.com in which you can input your city/zip code and it will tell you where you can find the cheapest gas in the area! Saving money is always a wonderful thing!

Butts County, Clayton County, Coweta County, Fayette County, Henry County Real Estate Numbers!

2011-06-03T00:49:00.008-04:00

What's going on in Southern Crescent of Metro Atlanta Real Estate!? I've compiled some information below to show where some of the cities in the local market stands in terms of inventory levels, absorption rates, and average sales price. Of course, the average sales price is nothing more than the average sales price -- it varies from subdivision to subdivision, area to area, etc, but this is just to provide an overall view of what's going on on the south side.

If you don't know what an absorption rate is, here's a quick definition from this blog post:

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.

Fayette County:
Brooks:  Ave. Sales Price: $186,822   Absorption Rate: 21.99 months   # Homes for Sale: 41
Fayetteville: Ave Sales Price: $200,168 Absorption Rate: 17.2 months   #Homes for Sale: 1002
Peachtree Cty: Ave Sales Price: $268,269 Absorption Rate: 15.8 months  #Homes for Sale: 508
Tyrone: Ave Sales Price: $233,279   Absorption Rate: 17.24 months   # Homes for Sale: 135

Henry County:
Hampton:  Ave Sales Price: $130,299   Absorption Rate: 11.47 months   # Homes for Sale: 280
Locust Grove: Ave Sales Price: $119,825 Absorption Rate: 12.95 months  #Homes for Sale: 325
McDonough: Ave Sales Price: $130,438 Absorption Rate: 11.98 months  #Homes for Sale: 1139
Stockbridge: Ave Sales Price: $96,317   Absorption Rate: 9.73 months   # Homes for Sale: 498

Coweta County:
Newnan:  Ave Sales Price: $137,329  Absorption Rate: 16.38 months   # Homes for Sale: 1507
Palmetto:  Ave Sales Price: $71,849   Absorption Rate: 16.39 months  # Homes for Sale: 153
Senoia: Ave Sales Price: $154,527  Absorption Rate: 14.44 months   # Homes for Sale: 278
Sharpsburg: Ave Sales Price: $210,051  Absorption Rate: 12.36 months  # Homes for Sale: 270

Clayton County:
Forest Park: Ave Sales Price: $30,526   Absorption Rate: 7.22 months   # Homes for Sale: 192
Jonesboro: Ave Sales Price: $61,169   Absorption Rate: 7.93 months   # Homes for Sale: 700
Morrow: Ave Sales Price: $51,478   Absorption Rate: 6.8 months   # Homes for Sale: 136
Rex: Ave Sales Price: $47,751   Absorption Rate: 7.29 months    # Homes for Sale: 180

Butts County:
Jackson: Ave. Sales Price: $84,522   Absorption Rate: 20.73 months  # Homes for Sale: 387

I haven't included every city in the Southern Crescent of Metro Atlanta, obviously. If you would like detailed information for your city or if you would like for us to compile a report for a particular subdivision, please let us know! Real estate is our job and it's what we love!

Preparing Your Home for the Market... Do Your HOMEwork!

2011-06-01T23:56:00.000-04:00

Consider this a warning ... If you're looking to sell your home in 2011, you need to make sure your home is ready for the market! Long gone are the days when a sign in the yard would bring a contract in 15 days. Your home must not only be priced aggressively, it needs to be in top condition. Here are some tips from Inman News as to how you can get off on the right foot (remarks from Rebekah in red):

First and foremost, put it in the best condition possible, especially if you are in a market with few buyers and lots of homes for sale (sidenote from Rebekah: Check! That applies to us in the South Metro Atlanta Market!). That means taking care of any major repairs that could deter a buyer (such as replacing any broken windows or replacing a leaky roof) if you can afford it. Next, work on your home's curb appeal. Make sure your landscape is pristine. Mow the grass, clean up any debris and weed the garden beds. Plant a few annual flowers near the entrance or in pots to be placed by the door. Other quick fixes that don't cost a lot of money but can help you get top dollar for your home:

* Clean the windows and make sure the paint is not chipped or flaking. (Believe it or not, chipping/peeling paint can actually scare a buyer away -- trust me, I've had it happen! To some buyers, that's an easy fix. To others, it's too much work).

* Clean and freshen up rooms, furnishings, floors, walls and ceilings. Make sure that bathrooms and kitchens are spotless. (Clean your kitchen counters off. Clutter on the countertop makes the kitchen appear small and the kitchen is one of the most important rooms in a house. In regards to the bathroom, make sure it's clean and make sure the toilet lid is down for showings -- one of my biggest pet peeves!)

* Organize closets. (Yes! Yes! Yes! Organize those closets! Don't let things fall on the potential buyer when they open the closets to explore closet space! Storage space is important!)

* Make sure the basic appliances and fixtures work. Replace leaky faucets and frayed cords. (Leaky faucets can run buyers away! Although many leaks are easy fixes, some buyers can't see past the "plumbing issue.")

* Eliminate the source of any bad smells, such as the kitty box. Use air freshener or bake a batch of cookies before your open house to ensure that the house smells inviting. (Whatever you do, don't try to mask any bad smells. For instance, "clean cotton" air freshener doesn't really cover up kitty box. Your home will then smell like "clean cotton kitty box." The key word in this tip is ELIMINATE. Odors of any kind are not good -- pets, smoke, etc).

* Invest in a couple of vases of fresh flowers to place around the house and next to any information about the house you have prepared for buyers. (Do anything and everything to give potential buyers that "warm & fuzzy" feeling. Buyers have gut feelings with houses and you want to do everything possible to try to make them connect with your home).

These are just a few tips! Don't stop here though, if you really want to sell your home and you're serious about doing it, you want to do EVERYTHING possible to make your home stand out above the others! Buyers have so much to choose from. Make them remember YOUR home!

If you're interested in selling your home, please call us for a detailed market analysis and we'll be happy to review your property and offer suggestions as to how you can prepare it for the market. The following are areas that we service: Fayetteville, Peachtree City, Brooks, Senoia, Tyrone, McDonough, Stockbridge, Locust Grove, Hampton, Jonesboro, Morrow, Rex, Conyers, Covington, Jackson, Griffin, Newnan, Sharpsburg, Moreland, etc.

Hire a Professional to Sell Your Home!

2011-05-27T12:37:00.000-04:00

Why You Need a True Professional to Sell Your Home

by The KCM Crew on May 27, 2011
Many people ask us whether they should hire an agent to sell their home or whether they should first try as a For Sale by Owner (FSBO). In today’s volatile market, we believe this is an easy decision: you need an experienced professional!

You need an expert guide if you are traveling a dangerous path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer willing to pay fair market value for your home at a time that there are mass inventories of foreclosures and short sales will take a true real estate professional. Finding reasonable financing can also be tricky in today’s lending environment.

You need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that off after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

Atlanta Makes Top 10 for Most Searched Markets & Most Foreclosures!

2011-05-24T14:21:00.000-04:00

Inman News and Realtor.com have released the top 10 most searched real estate markets and Atlanta is one of them! Perhaps buyers are looking to take advantage of the great deals that are out there. Those looking to sell won't be thrilled to hear that Atlanta, after Detroit, has experienced the largest decline in prices when comparing year-over-year, with an average decline of 13.6% (Detroit's year-to-year decline was 18.2%). The complete list is as follows:

1. Chicago
2. Detroit
3. Las Vegas
4. Phoenix-Mesa
5. Los Angeles - Long Beach
6. Tampa - Saint Petersburg - Clearwater
7. Philadelphia
8. Atlanta
9. Dallas
10. Orlando

Sadly, in regards to foreclosure rates, Atlanta takes third place for foreclosure filings amongst the list. Nationwide, 1 in 191 housing units received a foreclosure filing last quarter; whereas, 1 in 78 received a foreclosure filing in Atlanta (1st was Las Vegas with 1 in 31 units and 2nd was Phoenix-Mesa with 1 in 48).

With low prices and low interest rates, now is definitely the time to buy!! If you know of anyone who is looking to purchase in McDonough, Locust Grove, Stockbridge, Hampton, Fayetteville, Peachtree City, Tyrone, Senoia, Newnan, Conyers, Jackson, etc, please let us know -- we would love to help them with their real estate needs!!

For the complete article, visit: http://lowes.inman.com/newsletter/2011/05/24/news/143465

Wells Fargo Short Sale -- Mission Complete!!!

2011-05-20T12:36:00.000-04:00

We recently closed a Wells Fargo short sale in Fayetteville, GA! In this market, short sales make up a great deal of the inventory and we're not afraid of them (unless it's a Bank of America short sale, but that's another post for another day!). There's nothing more rewarding than helping good people out of a bad situation that they had no control over! There's no sense in just letting your house go into foreclosure without trying a short sale first! If you're behind on payments and face foreclosure, please call us! We've successfully closed multiple short sale transactions and would love to help you!

We're so passionate about short sales that we go above and beyond to help our clients out of their situation. In fact, our most recent short sale was initially denied by HUD and so therefore, Wells Fargo declined the short sale. Most agents would have stopped there -- what more could be done? Melissa and I were not happy with that answer so we started researching contacts at the U.S. Department of Housing & Urban Development and came across the name and number of a gentleman that is a "Housing Program Specialist" with HUD. We contacted him, explained the situation and the circumstances and he did his magic. Within a day we received an email that he had reversed the decision and had the file reopened at Wells Fargo. A couple of weeks later, we closed this transaction. What would have happened if we wouldn't have cared enough to be persistent and get this done? Our clients' home would have gone into foreclosure, their credit would be damaged more so than with the short sale, and they would have been devastated. Our clients even received a $1000 check for their participation in the short sale versus letting it go into foreclosure! See, it pays to take action!

INTEREST RATES ARE AT AN ANNUAL LOW!

2011-05-16T16:18:00.000-04:00

In declining for the fourth straight week, mortgage rates reached their lowest levels of 2011.

The 30-year fixed-rate mortgage, a popular choice among home buyers, averaged 4.63 percent this week, reports Freddie Mac in its weekly mortgage market survey. Last week, the 30-year mortgage stood at 4.71 percent; compared to last year at this time, it averaged 4.93 percent.
Meanwhile, the 15-year fixed-rate mortgage also reached its lowest level of the year, averaging 3.82 percent this week from 3.89 percent last week. Last year at this time, the 15-year mortgage averaged 4.30 percent.

The 5-year adjustable-rate mortgage averaged 3.41 percent, down from last week’s 3.47 percent average. A year ago, it averaged 3.95 percent.

As rates continue to fall, the number of mortgage applications are increasing. Mortgage applications increased 8.2 percent this week compared to one week earlier, reports the Mortgage Bankers Association. The refinancing index increased 9 percent--it’s highest level since mid-March. Mortgage applications for purchase also got a boost, rising 7.1 percent compared to the previous week.

Source: realtor.org

5 Reasons You Should Consider Selling Now!

2011-05-11T12:06:00.000-04:00

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure
The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days
The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to market.

As an example, LPS reported in their latest Mortgage Monitor that:

■ There are still twice as many loans going 90+ days delinquent as are starting foreclosure

■ There are almost three times the number of foreclosure starts as there are foreclosure sales

■ Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales

This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated:

“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.”

This may impact any potential purchaser for your property and may also impact your next purchase.

5.) It’s time to get on with your life

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. We would love to sit down and talk with you. No obligations!

Blog from KCM blog - Steve Harney

Almost 14,000 Homes Sold Yesterday!

2011-05-04T08:32:00.000-04:00

One of the biggest misconceptions in today's housing market is that homes are not selling.

That is simply not true.

Last month's Existing Sales Report from the National Association of Realtors (NAR) showed that homes were selling at an "annual rate of 5.10 million". That's an average of 13,973 every day – 365 days a year!

And the monthly Pending Sales Report, which measures the number of houses going into contract each month, has showed increases in six of the last nine months prompting Lawrence Yun, NAR's chief economist to say:
"Since reaching a cyclical bottom last June, pending home sales have posted an overall gain of 24 percent and demonstrate the market is recovering on its own. The index means modest near-term gains in existing-home sales are likely."

We realize that 40% of the sales are distressed properties and that 22% of buyers are investors. Yet, that still doesn't negate the fact that homes are in fact selling... and 60% of them are NOT foreclosures or short sales.

And Yun believes this uptick will continue:
"Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year."

Bottom Line

Homes are selling. You probably will need to offer a compelling price if you put your house on the market. But if you do, it will sell....and we know someone who can get the job done....US!

Mortgages - Is What You Believe Actually True

2011-04-01T11:05:00.000-04:00

What if everything you believed to be true about mortgages, wasn't actually true after all? Would you rather know now or later?

In my experience, I have come to understand that many, if not most, clients come 'pre-conditioned' by what has long been termed "conventional wisdom". For generations, people have been told that when buying a home, they should:

■ Make a big down payment

■ Obtain a fixed-rate-mortgage; 15 years if you can afford it

■ Make additional principal payments whenever possible

■ Pay off your loan as quickly as you can

People see a mortgage as a "necessary evil"- one that they should be afraid of and try to eliminate as soon as they can. And while the concept of being mortgage-free may seem attractive on the surface (and may have been an acceptable strategy in the past), we no longer live in the same world that our parents and grandparents did. Unlike previous generations:

■ We will not have the same job for life. Most people will have five to six different careers. That simple fact will preclude most people from a company pension as part of a retirement strategy.

■ We cannot realistically count on Social Security to exist in its current form. Either your benefits will have to be reduced or pushed off to later years to enable the fund to remain solvent.

■ We won't have "Mortgage Burning Parties". People live in their homes on average just seven years now and, because of refinancing, their mortgages will only last 5 years.

Ultimately, we have to appreciate that we live in a very different world and that the tactics and solutions of the past no longer fit the challenges of the present or future. I believe we have an obligation to custom design our clients' mortgage in a way to enhance cash flow, minimize income taxes and help implement alternative strategies to protect their assets and create wealth.

I know clients can make better choices if they are armed with the understanding that every dollar applied to the principal of their mortgage (through down payments, regular mortgage payments, and even pre-payment strategies) is NOT the strongest fiscal strategy. When you pay down your mortgage, the BANK is in a less risky position. Whose risk is increasing? YOURS!

I have seen clients apply money towards their principal balance of their 5% tax-deductible mortgage, while carrying 18% non-deductible credit cards. Why not get rid of the revolving debt? I know you need discipline to actually save the money you would normally apply to lower your mortgage balance. However, I promise you that good mortgage professionals (and I know one you can talk to) can show you the power of separating the equity from the home; the increased liquidity, the phenomenon of compounding interest and why the actual rate of return on home equity is 0%.

I imagine many will dispute my contentions here, but they are mathematically proven. If you have discipline, there IS a better way to manage your finances. Explore them and decide for yourself.

Courtesy of KCM Blog, Steve Harney

Upfront Appraisal Fee!? To Pay or Not to Pay!?

2011-03-29T15:31:00.000-04:00

Buyers ask all kinds of questions, but the one that I hear THE MOST, is: "is it normal for the lender to ask me to pay for the appraisal fee upfront or prior to closing?"

In fact, just last week I was asked this question by two of my buyers. It's almost a guaranteed question - it comes up with 8 out of 10 buyers. Here's the answer - it's normal and okay - no worries! While it's up to each lender, majority of lenders require that the buyer pay for the appraisal up front as opposed to at closing as part of the closing costs. If a loan is involved, an appraisal is always required. In this area, the cost is typically $375-450. If something happens and the deal falls apart, the appraiser still has to be paid - no matter if the sale goes through or not. If the lender didn't collect the fee upfront, he/she would be eating appraisal fees left and right and at $400 a pop, that can get expensive pretty quickly.

If you have a good agent and lender working for you, they should be able to help protect you when it comes to the appraisal. For instance, it's probably not wise to pay for an appraisal on a short sale until after the bank has provided written short sale acceptance. Short sales don't always work out, so if you paid $400 for an appraisal only to find out that the bank refuses the short sale, that's $400 wasted. One of my preferred lenders protects buyers by not ordering (& charging!) for the appraisal until after the buyer has done their inspection and feels confident that they want to move forward with the deal (so long as time permits). What if the inspection reveals major issues and you decide to terminate the contract? If the appraisal has already been completed, you just lost $400.

Every scenario is different, so it's important to have a good agent and a good lender to help protect you! But the general answer to the question is yes, it's okay to pay the fee upfront. If I were a buyer, I would have the same question! It's never wise to cut checks or give out your credit card info for reasons you're unsure of!

Once in a Lifetime Opportunity for Buyers?

2011-03-19T18:20:00.002-04:00

Business Insider's Money Game interviewed real estate expert Barbara Corcoran earlier this week. This is what she said about buying in this market:

“We have a regular real estate miracle happening right now. We not only have record low prices, but we also have cheap money.”

A second real estate icon, Donald Trump, just a few weeks ago said:

"This is a great time to go out and buy a house. And if you do, in 10 years you're going to look back and say, 'You know, I'm glad I listened to Donald Trump'."

Melissa and Rebekah Stephens of The Stephens and Stephens Group at Better Homes and Gardens Real Estate Metro Brokers has quoted, screamed, pleaded, and begged people to listen to them: NOW IS THE TIME TO BUY A HOUSE! We've had over a dozen clients purchase homes this year and their mortgages are cheaper than they were paying in rent! We've even had some clients sell their current home, even if they're taking a loss on it, just so they can move on and buy another one at an incredible price. It makes up the loss when they can go purchase their "dream home" at a price that probably won't be seen again in their lifetime. To make it sweeter, interest rates are also at all time lows. There really is no better time to buy real estate.

Maybe it's time to start listening to the people who have made fortunes buying and selling real estate. They may know best!!

Better Homes & Gardens Real Estate Metro Brokers Awards Breakfast

2011-03-12T18:09:00.001-05:00

This past Tuesday Melissa and I attended the Better Homes & Gardens Real Estate Metro Brokers Awards Breakfast/Banquet at the Cobb Energy Center! It was a high energy event packed full of top agents, great food, and lots of motivation! Metro Brokers' president, Kevin Levent, spoke as well as the President/CEO of Better Homes & Gardens Real Estate, Sherry Chris! Here's a fun picture of us with "Metro Mike," the company mascot! We're lovin' the orange sneakers, Mike! :)

Will I Get More Money for my House if I Wait to Sell?

2011-03-11T14:24:00.000-05:00

Sellers in any real estate market are looking to get the best possible price. Rebekah and I strive to get the highest obtainable price for all of our sellers. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation in 2011. Studies released this week have painted a different picture.

If we look at CoreLogic’s January Home Price Index (HPI), we see that prices are again beginning to decline:

National home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010…

Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”

They are not talking about the spring market increasing or even stabilizing prices. They hope it will “reduce” the pressure to drive prices lower.

Bottom Line

We've been preaching this on our blog and to all of our sellers. It seems that prices have again begun to fall nationally. With the overhang of existing and shadow inventory, prices will probably continue to decline throughout most of 2011. If you’re thinking of selling, now might be the best time. Call us anytime for a market analysis on your home.

Hire a Smart Duck!

2011-03-09T09:31:00.002-05:00

Steve Harney, one of our personal coaches from a well respected company Keeping Current Matters, just posted a blog about Realtors. I have to re-post it because as I read it I couldn't help but think to myself that Rebekah and I are "Smart Ducks." Read below to see what I mean.

You can learn so much just by observing nature. Last week, I was staying at a fabulous hotel in southern California. My wife and I were having lunch at an outside table at the hotel restaurant. It was impossible not to notice the ducks that gathered around the tables at the restaurant looking for food. The birds would wait for the people to leave and then they would flock to the tables looking for crumbs that were dropped to the floor. There were dozens of birds fighting over the scraps left behind. Every duck did the same thing; except for one.

This duck was different. Instead of waiting for the couples to leave, this duck would wait only until the food was originally delivered. At the moment the staff delivered the food, the duck would race to the table and look up at the people who were about to eat. Surprisingly, every person immediately took something from their plate and feed it to this duck. They fed the duck BEFORE they began to eat.

This duck didn't settle for scraps and leftovers. He ate the best food off the plate. This duck didn't fight with dozens of others. He was alone when the customers fed him. It was truly amazing.

It made me think about the difference in real estate agents. Some will list a house, put it on MLS and hope for the best. Others will represent a buyer by simply checking the MLS to see if a suitable house is available for sale. They are like many agents in the marketplace. They are waiting for something to happen. Just like all those other ducks.

Then there are agents who will take it upon themselves to make something happen. They will diligently search for the buyer of their new listing. They will knock door-to-door looking for the perfect house for their new client who is dreaming of a new home for their family. They are like that special duck. They are not waiting for the leftovers.

Bottom Line

I can't tell you how many times Rebekah and I have done something creative, out of the box, knocked on doors, etc. just to spread the information on a listing, find the right house for a buyer, or just work out the kinks that are involved in real estate.

In all of nature, some wait for things to happen and others make things happen. When hiring a real estate agent, look for the later. Don't settle for scraps. Call us.....HINT HINT! : )

And just because it's funny.......aren't you glad you don't live in this "Duck House." Please don't call us to list this thing...we would gladly decline.

Attention Buyers: Do NOT Pay Your Realtor!

2011-03-05T09:50:00.002-05:00

It's a rainy Saturday morning and I just feel the need to vent about something before we head out to list this great property at 435 Kibbee Road in McDonough....

I once worked with a Realtor to close a deal in which I represented the seller and she represented the buyer. At the closing table she told me that she charges all of her buyers an upfront fee of $350 - $550 before they even begin looking at homes. She writes it in the buyer's brokerage agreement that she has the buyer sign before they head out to look at homes. No way, Jose! We don't charge buyers anything and never will. It's not typical in our market for agents to charge buyers any sort of commission, fees, etc. The seller pays commisson. Always.

I never really thought anything more about it after we left the closing table. There are good agents, bad agents, and then there are some plain out sketchy agents. Well the other day, I heard it again. Another local Realtor charges buyers a fee other than the commission. WHAT!?!? Maybe one day we'll reach the superstar status, like the Nicole Kidman of real estate, and people will beg us to work with them and pay us crazy fees just to take them out to view homes! My best bet is that the buyers who are willing to pay these fees are first time home buyers who don't know any better. I would put $500 on the table to say that if a 45-year old business man/woman waltzed in the door with a prequalification letter, these Realtors wouldn't even begin to ask for an upfront fee. Anyone who has any knowledge of the real estate process would call bullcrap on an upfront fee and send these agents back to their office with their tail between their legs! If these crazy agents think it's okay to charge an upfront fee and take advantage of their clients, what other unethical things are they willing to do throughout the process!?!? They're probably the same Realtors who write themselves in higher commission or sales bonuses in offers (yes, it happens!).

As Realtors we're considered independent contractors and therefore have the right to set up our business the way we want to. Technically, they're not breaking any laws or anything like that, but it's a moral issue - right vs. wrong. As a buyer, you have the right to choose a good, honest, hardworking agent to represent you. Be careful who you choose! ;)

Okay, I'm done ranting. Off to list this cute house on 3.62 acres! Huge barn/workshop, pole barn & greenhouse all with electricity! Love, love, love this house. If I were in the market for a new house, I would have this baby under contract ASAP!

Happy Saturday! :)

We've Got You Covered!

2011-03-01T07:48:00.001-05:00

Most people, including our own clients, don't realize that Rebekah and I can help them buy or sell anywhere in the world, but we can! There's nothing worse than moving to a new place, or having a house to sell, and not knowing who to call or trust.

Most of you already know our story....we were born and raised just south of Atlanta so we truly know the Southside of Atlanta. We live in Fayette and Henry Counties and we have family scattered all over the south metro areas (Clayton, Butts, Fayette, Henry, Lamar, Pike, Spalding, Coweta, and many more). Rebekah and I mostly work out of the Henry, Fayette, and Coweta offices, but we have offices all over Georgia that we utilize.

Although we specialize in Metro Atlanta Real Estate, we can help you move anywhere in Georgia, the US, or the world! In the last two months we've helped three different clients find agents in Tennessee Florida, and North Georgia.

Don't worry! We don't just pick up the phone and call just anyone. We have an extensive network of agents that we call on. All are experienced and have met education guidelines, but we don't stop there. Rebekah and I always call and interview them over the phone to see if we think they're a good fit for our clients. If not, we move on to the next one. Once you are in touch with an agent, if you don't like them, just give us a call and we'll find you another one. It's been our experience that most of our clients end up extremely happy with our choice though.

It's that simple! We're a one stop shop that will help you move wherever life takes you! Let us know if we can help you!

100% Financing Available - NO DOWN PAYMENT!

2011-02-28T22:52:00.001-05:00

We often hear questions such as "are there any loans that do not require a down payment?" or "is there such thing as 100% financing anymore?" The answer to both of these questions is YES! Other agents may have told you no, but there is! You heard us correct - there is such thing as buying a house in 2011 and making NO down payment! Here's how... Rural Development/USDA Loan! This is a 100% financing loan that requires no down payment! And it actually gets better -- there is no private mortgage insurance fees AND you can finance closing costs into the loan as long as the property appraises for the sales price + the closing costs! The only catch is that the property must fall in a USDA/Rural area. Qualifying areas include parts of McDonough, Hampton, Locust Grove, Senoia, Moreland, Jackson, & many other areas! The areas are reviewed and altered according to the US Census results, so these areas could change in the near future. Here are some helpful points to see if the USDA loan might be a good match for you:

- There is a 3.5% funding fee that can be financed into the loan
- There is NO PMI
- You do NOT have to be a first time home buyer to qualify
- There are income limits: 1-4 person $82,600 5-8 person $109,050
- Credit Score: 640+ (non-traditional credit okay if no credit available)
- Property Type: Primary residence only, no investment properties
- Some renovations can be financed in as long as the property appraises accordingly

If the only thing holding you back from taking advantage of this fabulous deals this market has to offer is saving for a down payment, this could be your ticked to purchasing a home! Please don't hesitate to call or email us if you have questions about this loan product or the qualifying areas!

And by the way, there's also the option of purchasing a HUD home with an FHA loan to qualify for a $100 down payment. That's the next best option if you're looking for NO down payment! Call us, we're knowledgeable agents who know the market and know the loan products that are available! I recently closed a USDA loan with a co-op agent who didn't even know that it existed!

Happy House Hunting,

**We are not lenders, but we can certainly refer you to one if you have questions about this loan product. Qualifications and guidelines may change at any time, so it's important to talk to a lender for the most current information!**

Market Data: January '10 vs. '11 -- Clayton, Coweta, Fayette & Henry County

2011-02-27T00:15:00.002-05:00

We often study the local market trends as it is the only way to really understand what's going on in this crazy world of real estate. The charts below compare January 2010 vs January 2011 in regards to the number of sold properties along with the average sales prices for Clayton County, Coweta County, Fayette County & Henry County. To the left of each chart is the absorption rate for each county.

Bad MLS Photos

2011-02-15T14:12:00.001-05:00

Sometimes it's entertaining to just browse photos of houses in the MLS. You wouldn't believe what we come across. Here are 5 examples of crazy photos that I found in less than 10 minutes of searching. Melissa and I are pretty tough on our sellers when it comes to preparing their homes for marketing. Apparently the agents that took on these listings are not....

Nevermind that the photo is blurry - there are bigger issues here:

(1) A dog on the sofa. Really? A dog ..... on the sofa? You don't really want to ever advertise that you have pets. You wouldn't believe how many buyers hate dogs/cats inside. Even if your house was spotless and smelled of nothing but roses, the dog hater buyer would swear that there was a strong pet odor and would immeidately storm out of the house. Nothing against dogs on the sofa, I have a rather rotten dog myself and yes, from time to time, he gets on the sofa (but if I were selling my house, he wouldn't be in the photo!).

(2) & (4) go together. Before taking marketing photos, clean your house. Unless you use the "Yellow Pages" as your coffee table book, put it where it belongs. Clean up.

(3) This one took me a minute... look closely at number 3. That's not just random stuff on the shelf, that's dog (or maybe cat) food with a jug of water. Look directly below the shelf and you'll see the food dish. Where do I begin. I'm not saying sellers should kick their pets out of the house when they're trying to sell, but dog food isn't exactly a home decor item! It doesn't belong on the living room shelf. And for crying out loud, go to the kitchen sink for water!

This photo really only shows off the bed and makes it appear that the room is extremely small. A potential buyer may not even notice the room size though, because more than likely, their eyes are going straight to the neon green wall where little Lucy has written all over the wall. It's always a good idea to paint your house with neutral colors when you're marketing it for sale, but it's a darn good idea to at least cover up things like this!

I couldn't possibly number everything wrong with this photo. There's too much "stuff" - it's everywhere! One of the number one rules when staging your home to sell is to remove all of your personal photos throughout. One or two may be okay, but there's just too many here. One of my biggest pet peeves in photos is Christmas decor when it's not Christmas. Really and truly, I bet this is a cute house with the built-in bookshelves, but a buyer looking at homes online would never realize this because they can't see past all of the "stuff." Declutter, get rid of personal photos, clean, take down Christmas decorations, turn on lights when taking photos... etc.

(1), (2) & (3) - Bless #2's heart, he's looking in the wrong direction. This is a great family room - high ceilings, a fireplace and it appears to be open to another room - probably the kitchen. Most buyers can probably look past Rudolph, Comet & Blitzen hanging on the wall, but when it comes to staging a home to sell, dead animals doesn't do too much for the house. Honestly, it wouldn't be so bad in a rec room with a pool table or something, but the family room?
(4) Once again, it's best to remove majority of your family photos. Make it easy for the buyer to imagine themselves living here. Plus, buyers can get distracted looking at your photos, and spend less time looking at your house.

(1) Back to basics - neutral walls, sellers! Neutral may seem boring, but it's what buyers want!

(2) Sellers are often times in a big hurry to get their home on the market and in the MLS system. It's like once they decide to sell, they're ready to do it the next day, no matter what shape their house is in. Take time to clean, organize, touch up paint, landscape, make minor repairs, etc. before you list. This picture does absolutely nothing for the house.

We hope the sellers of the above houses don't contact us anytime soon to list their houses ... we'll have to put them through "seller bootcamp" before we'll even step foot inside their houses with a camera!!

5 Reasons to Sell Your Home Now!

2011-02-15T09:31:00.000-05:00

The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?

1.) Interest Rates Are On the Rise

Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.

2.) Your Dream Home Will Never Be Cheaper

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3.) Buyers Are Out Early

There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.

Pete Flint, CEO of Trulia: We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We've are now experiencing 100,000 property views per minute."

The National Association of Realtors just reported that the number of house sales increased 12.9% over last month.

4.) Inventory Increases Every Spring

Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.

■February – 3,531,000

■March – 3,626,000

■April – 4,029,000

We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won't have to worry about this increasing competition if you sell now.

5.) We Are in the Eye of the Foreclosure Storm

While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.

CNN Money quoted the leadership Of RealtyTrac on this issue: “We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.

“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.

Bottom Line

These are five strong reasons to sell now instead of waiting until later in the year. Feel free to call or email us with any questions or to schedule a time to sit down and talk about your home.

Short Sales & Foreclosures: Mortgage Forgiveness Relief Act

2011-02-03T23:03:00.002-05:00

We just had a past client email us and ask us about a 1099 that they received in the mail from their mortgage company - their question was "what is this for and why?" We thought that given the amount of foreclosures and short sales that are taking place these days, this question may apply to many so why not post the answer right here on our blog...

Our past clients received a 1099 because sadly, their home was foreclosed on in 2010. Anytime you owe a debt to someone else (whether it be a mortgage, credit card company, etc) and they cancel or forgive that debt, the discharged amount may be taxable. When this happens, they will issue a 1099-C for the discharged amount; however, the Mortgage Foregiveness Relief Act was rolled out in 2007 and in some cases, it forgives certain types of cancellation of debt. Those who have sold via short sale or who were foreclosed on since 2007 may be eligible for this forgiveness. For more information, visit: http://www.irs.gov/individuals/article/0,,id=179414,00.html

This provision applies until 2012. If your debt cancellation does fall in the guidelines to be forgiven, it still has to be reported to the IRS. Now for the disclaimer: We're not tax professionals/experts or legal advisors, so we can't advise you on the best way to file, etc. We just want you to be aware of the Mortgage Foregiveness Relief Act so that if you think it may help you, you can be sure to talk to your CPA about it.

Our Expert on Fox Business!

2011-01-18T15:35:00.001-05:00

Rebekah and I attend a meeting once a month with an elite group of Realtors and market advisors to keep abreast of the market, the changes, the expectations for the future, etc. We've always known the information is great. It's our way of staying on top of the market so that we can provide the best service and accurate information to our clients.

Well......Fox Business must have thought the information we receive is good too. Steve Harney is the ring leader of our group. We listen to him via webinar once a month and meet with him in person usually twice a year. He has his own website, http://www.keepingcurrentmatters.com/ and Fox Business just interviewed him.
Click on the link below to watch his segment on Fox Business. It's only 3.58 minutes long, but it says the things we are always telling you! Now.....we consider ourselves your experts. We truly feel we know the market better than most agents, but if our word isn't good enough, listen to Steve!

Click Here: http://vimeo.com/18865192

Real Estate Auctions

2011-01-14T23:43:00.000-05:00

We're seeing more and more homes go to auction these days and thought it might be helpful to put together a list of things to know. Auctions can be tricky, especially if you're going in blind without doing your research first. Melissa and I attended an auction with a client a few months ago. Before we jump into things to know here's a quick video that we took that day:

1. Before bidding on an auction property,do your homework! When purchasing auction properties, they typically don't allow an inspection or due diligence period. Do any necessary inspecitons prior to bidding on the property. If you don't win the bid, you're out of the money spent on the inspections, but better safe than sorry. If you don't have an inspection first and bid on a property only to find a major issue later down the road and try to back out, you will lose your earnest money and/or any deposits which will hurt the pocket more than the inspection fee).

2. Auctions typically charge a "buyer's premium" that is added on to the sales price. It's normally between 5-10% of the sales price. So if you're the winning bidder at $100,000, they will add 5% to that, to make the total amount $105,000. Keep this in mind when bidding. If you're prequalified to $100,000, then you wouldn't want to bid anymore than $95,000 if there's a 5% premium.

3. Auction properties normally call for more earnest money than the area standard. For example, REDC Auctions call for 5% in earnest money (15% for every additional property purchased). So if you put an auction property under contract for $210,000 ($200k purchase price + $10,000 premium), you're looking at earnest money of $10,500! What a huge amount to risk losing if for some reason you don't close!

4. Closings must typically take place within 30 days of the auction. No excuses! If you don't close by the deadline, then you risk losing your big chunk of earnest money! Doesn't matter if it's the lender's fault or if you only need 3 more days to get it closed. 30 days... that's it.

5. They don't offer financing contingency periods so be sure that you're 130% confident in your lender and make sure the lender knows they only have 30 days to prepare the loan and have it ready to close.

6. Some auction companies require a loan commitment letter from the lender with no conditions if the buyer is obtaining financing to purchase the property. If your lender can't offer a commitment letter with NO conditions, then they require that you use their on site lender.

7. All winning bids must still be approved by the seller. If you're the winning bidder, don't get too excited until you know the bid has been approved. This is where the deal sometimes dies and the property comes back on the market.

8. We've seen some auction companies open the auction back up "one last time" online after they had a winning bid on a property. Seems like they're trying one last time to sell the property at a higher price than what you bid. Not fair, huh?

9. They do allow agents to represent buyers, but you must register your agent when you register. If you don't, then you have to navigate through the auctioin process by yourself. Yikes!

Of course the rules are different depending upon which auction company you're dealing with, but the above mentioned tips are things to look for because they're common amongst the big auction companies in this area! Have questions? Please feel free to email us!

An Honest Realtor

2011-01-07T23:40:00.001-05:00

Realtors are often laughed at for the terms that they use to describe homes... you know, we sometimes, sugar coat some of the worst features. You've probably seen some of the following phrases before:

Adorable, Cozy, Cottage Like, Dollhouse --- look for a small house, probably less than 1200 sq.ft.

Lots of Potential, Needs TLC, Handyman Special --- look for a house that needs a ton of work

Beautiful View, Lake View, Water View, etc --- look for a house with a view.... if you lean over to a 45 degree angle, hold a mirror up, and squint you might just be able to see some water.

You get the point. So it's quite refreshing when you come across a Realtor who doesn't throw a little sugar in the mix. A straight shooter who wants you to know what you're walking into. Take this "cute" house for example:

It's a 2 bedroom/1 bath home in San Francisco with a whopping 875 square feet. Do we dare call this charming? I think not. So here's what the Realtor used to describe the home. Yes, folks, this was actually input into MLS system:

Needs everything, not just TLC... but everything! Not to be even concidered unless you are a contractor. Still want to see it? Be prepared to walk lightly because you may fall through the floor. Nice roof just a few years old,at least something is good on the thing.

Want to know the craziest part of all? This baby sold for $335,000 (was listed at $350,000). Wow, God bless those buying real estate in San Fran! Come on out to the East Coast and Melissa and I will show you what $300k can buy you here! :)

Average Sales Prices in Clayton, Henry & Fayette Counties

2011-01-04T02:05:00.001-05:00

Now that 2010 is officially over, it's a good point to review the last 10 years of real estate in the Metro Atlanta area. The following are charts that we have created that show what the average sales price trend looks like for the past decade in Clayton, Henry and Fayette Counties. Hopefully within the next week or so, I'll find time to get in the MLS system and pull trends for other counties such as Coweta, Spalding, and Butts. But for now... check out these charts and see if you can tell when the bottom fell out of the real estate market here on the southside of Atlanta! :)

2010.....A Market Overview

2010-12-29T18:52:00.000-05:00

This past year has been very challenging for real estate. The market was defined by outside intervention. This intervention tugged at historic trends. Government involvment caused market fundamentals to be distorted beyond recognition. Unpredictability was the only thing we could predict.

Modifications

The administration's announced goal of the modification program was to save 3-4 million families from losing their homes. The actual number of homeowners assisted will come in at less than one million. Most consider the program a failure.

However, we believe that there was a secondary unannounced goal of the modification program: to slow the flow of foreclosed homes to the market. Putting homes through the modification process prevented banks from moving forward with the repossession process as quickly as they normally would.

Limiting supply was one of the ways the administration used to help stabilize home prices. However, the administration has recently slowed the modification process. Going into 2011, a larger number of foreclosed properties will enter the market.

Interest Rates

The administration began to control rates back in 2009 with the purchase of mortgage-backed-securities. When it was announced that the government would back off the purchases in the spring of 2010, everyone (including us) believed that mortgage rates would climb back to historic norms (6-7%) by the end of the year. The exact opposite took place. Rates fell to almost 4% on 30-year mortgages before jumping back to the 4.5 – 5% range at the end of the year.

The most amazing part was that the lower interest rates did not seem to spur buyer activity as sales softened while rates continued to fall through the year. Interest rates, at best, helped in maintaining demand in 2010.

Home Buyers' Tax Credit

Again, the administration's goal was to stabilize home values. The tax credit was supposed to drive housing demand. And it did – for the first four months of the year. However, it now appears that the tax credit did not increase overall demand, but instead, just pulled that demand forward.

Bottom Line

By decreasing supply (mortgage modifications limited the number and impacted the speed of foreclosures entering the market) and increasing demand (lowering interest rates and issuing a tax credit), the administration tried to stabilize the housing market. They accomplished some of their goals in a limited way.

We will not see this magnitude of government intervention in 2011 however. What will that mean to housing next year? We will give our thoughts on that in tomorrow's blog.

5 Reasons You Should Sell Right Now!

2010-12-21T14:32:00.000-05:00

Selling your house in today's market can be extremely difficult. It is for that reason that every seller should take advantage of each and every chance that appears. There is a fantastic opportunity available right now.

Here are five reasons you should consider selling in the first 90 days of 2011

1. Interest rates have spiked up.

Rates have jumped over 1/2 point in the last several weeks. The short term result of increasing rates is a surge of buyers jumping off the fence to purchase in fear that rates may continue climbing upward. This is a short window of opportunity. If rates fall again, buyers will jump back on the fence. If rates continue to rise, it limits the number of buyers who can qualify at each price point. Now is the best time to sell your house.

2. If you are moving up, you can save thousands.

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams a at bargain basement price, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3. During the winter months, the buyers are serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the 'lookers' are either staying warm (in the North) or just busy with other priorities. The home buyers left in the market are serious and are more apt to buy. Less showings – but to more motivated purchasers.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. Here is the number of listings available for sale in 2010.

■January – 3,277,000

■February – 3,531,000

■March – 3,626,000

■April – 4,029,000

We believe there is a pent-up selling demand (homeowners who have held off selling over the last year) that will lead to an increase in these numbers this spring. You won't have to worry about this increasing competition if you sell now.

5. You have less 'discounted' inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks trying to rectify their foreclosure procedures, there has been a large supply of discounted properties removed from competition. No one knows how long it will take banks to return to the normal flow of foreclosed properties to the market. However, until they do, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in 2011, there may not be a more opportune time than this right now. Serious buyers, great move-up deals and less competition from super-motivated sellers and foreclosures creates the perfect selling situation. Don't miss it!

Are Homes Actually UNDER-Valued?

2010-12-15T11:03:00.000-05:00

We have been barraged with headlines and news stories telling us that home values will continue to soften for the next several quarters. Some experts are predicting that today’s values will drop and not be seen again until the middle of 2012 at the earliest. We concur with these estimates based on the current demand for housing in relationship to current supply of both the visible and the shadow inventory of houses. Here we are discussing ‘market value’.

However, there is another way to value residential real estate. Housing analysts look at the ratio between current wages and sales prices. They use a multiplier to determine how much home the average buyer can afford and compare that to the average price at which a home sells. DSNews just ran an article on this subject. They stated:

The sharp fall in residential property prices in the third quarter means that housing in the United States has become even more undervalued, according to the analysts at Capital Economics.

Based on the latest S&P Case-Shiller index, Capital Economics has concluded that house prices are now 17 percent undervalued relative to disposable income per capita. Housing has never before looked as undervalued, the firm pointed out in a research note released to DSNews.

Looking at the data included in the index compiled by the Federal Housing Finance Agency (FHFA), residential home prices are 14 percent undervalued, which is also a record, according to Capital Economics.

The National Association of Realtors (NAR) has their own Housing Affordability Index. According to NAR:

The affordability index measures whether or not a typical family could qualify for a mortgage loan on a typical home. A typical home is defined as the national median-priced, existing single-family home as calculated by NAR. The typical family is defined as one earning the median family income as reported by the U.S. Bureau of the Census. The prevailing mortgage interest rate is the effective rate on loans closed on existing homes from the Federal Housing Finance Board and HSH Associates, Butler, N.J. These components are used to determine if the median income family can qualify for a mortgage on a typical home.

In their article, DSNews also addresses the NAR index:

The housing affordability index from the National Association of Realtors (NAR) remains close to its record high. Capital Economics explained that NAR's affordability assessment indicates that a median income household with a 20 percent down payment can now more easily afford the monthly mortgage payments on a median-priced home than at any time in the last 30 years.

By each of these historic measurements, homes are at all time values!!

Bottom Line

Lack of consumer confidence has caused many buyers to refrain from taking advantage of the golden opportunities that exist in housing today. However, buyers should look at COST (price and interest rate) not just price. People who purchase today will reap the reward of buying an undervalued asset and should enjoy excellent appreciation when inventory levels return to normal levels.

If you're not looking for a home right now.....why not? You're missing out! If you currently own a home, have you thought about the possibility of "moving up." There are excellent opportunities everywhere!

Reason #46 as to Why It's Important to Purchase Title Insurance

2010-12-13T18:19:00.000-05:00

When purchasing a home in Georgia, it is standard that the title be conveyed by a general warranty deed. In fact, the standard Georgia contract reads under paragraph 8 regarding Title:

"A. Warranty: Seller warrants that at the closing Seller will convey good and marketable title to said Property by general warranty deed ......"

But when it comes to purchasing a foreclosure/bank-owned property, the seller typically only provides a special (or limited) warranty deed. They will normally either make the change on the Georgia contract or have the buyer sign off on their bank addendum that advises of the change in the type of deed. Before you sign off on it, make sure you know the difference:

Under a General Warranty Deed, the seller warrants title to the property since the dawn of time. If there is a defect, regardless of the cause, the buyer has the option of proceeding after the seller for any resulting damage. Under a Limited or Special Warranty Deed, the seller is only warranting the title during the period of their ownership. They do not warrant anything that may have happened in the backchain of the title.

This may panic you at first, but this is where the importance of title insurance comes in. If a blemish on the title came up after closing and it was something that was prior to the bank's ownership of the property, then you would be S.O.L. (pardon my french, but it's the best way to put it!); however, IF you purchased title insurance, then you could file a claim under the policy. See why it's important to purchase title insurance? I always tell my buyers that title insurance isn't like when you purchase an electronic at Best Buy and they offer you the extended warranty for an additional fee - I think most of us turn that offer down. This is SO much more important than an extended warranty! You may think that title issues are rare, but come sit down with me and I'll share some of the horror stories with you.

Title insurance is a one time premium that is paid at closing (factored into your closing costs) and it protects you for as long as you or your heirs own the property. The cost varies based on the value of the property, but it's not a large expense and is so incredibly worth it. Depending on the policy, it can cover things like: sudden appearance of unknown heirs claiming interest in the property, forged deeds or impersonations, incorrect legal descriptions, improper recording of deeds, etc.

20,000 Houses will Sell This Weekend.....Will Yours?

2010-12-09T00:25:00.000-05:00

There is no doubt that demand for housing has slowed. The National Association of Realtor's 3rd Quarter Existing Homes Sales Report showed that sales were down in all fifty states and the District of Columbia (3rd quarter vs. the 2nd quarter). The decline was in double digits in all but two states (Nevada and California). Those are the facts.

But let us not allow the facts to get in the way of the truth. The truth is that over 4 million homes will have sold in this country by the end of the year. That averages out to be over 10,000 houses a day! Every day – 365 days a year!

Houses are selling. The question is will your house be one of the 10,000 that sell today. That is entirely up to you. You and your family can move on with your plans and dreams immediately. You just have to be willing to price the house at what today's purchaser is willing to pay. Will you be able to sell it for what it would have sold for in the past? Probably not. Will you be able to sell it for the price you had desired? Probably not.

You must weigh the cost of selling today (a reduced profit on your home) against the cost of not getting on with your life. There is no doubt that money is important to everyone, especially today. Being able to follow your plans and dreams is also important however. Don't allow money to ultimately control that decision.

Decide what is best for you and your family – AND DO IT!!

We can show you how. A few times a week we sit down with homeowners and give them the info they need to make a decision. Just last night we delivered some heart-breaking news that the $40,000 the homeowner had put down on the home four years ago has been eaten up by the market's depreciation. There are always other things to take into consideration, however. There's opportunity in Florida, her next destination, where she will likely be able to buy a "dream home" for $150,000 vs. the price tag of $350,000 three years ago. Let us help you make one your most important decisions!

Spreading Holiday Cheer - Holiday Events this Weekend

2010-12-03T10:29:00.010-05:00

Ok, so the holiday spirit is coming out in us! Just for a minute we're not going to talk about Real Estate!

We wanted to let you know of some fabulous local events to celebrate the Christmas season. Since we live in Fayette and Henry Counties, we're highlighting events in these areas. If you know of anything else good, please leave a comment so we can share.

1. Fayetteville's Christmas ParadeThis Saturday, December 4th, at 4:30 up and down the sidewalks of downtown Fayetteville. The tree-lighting and festitivities will take place at 6:00 on the square. Heritage Christian Church (right downtown) will have costumed Dicken's characters handing out warm chestnuts. There will also be free hot cocoa and Santa carriage rides from 7:00-9:00.

2. McDonough First United Methodist's Christmas Tour of Homes
This Saturday, December 4th, starting at 10:00am and ending at 3:00pm. Tickets can be purchased online at http://mcdfirst.org/tour-of-homes.html or in person at the Church the day of, located at 151 Macon Street in McDonough (just off of the square). Tour private owned decorated homes all around McDonough. The cost is $10. Once you purchase a ticket, you are given tickets and a list of the homes with directions. You drive from home to home and take the tours at your leisure anytime between 10-3. Did we say we weren't going to talk about Real Estate......ooops! You can bet we're going to look at these homes.....not just because we love houses, but even us Realtors need some holiday enjoyment too!

3. The Avenue Shopping Center in Peachtree City
Every Sunday between Nov 28-Dec 19, The Avenue hosts photos with Santa and horse drawn carriage rides for free. If there's inclement weather, Santa will be in the Joe Muggs coffee shop inside the book store in the shopping center. The Avenue is also decorated so pretty during this time of year. Mix in some shopping while you're there!

4. Our Coldwell Banker Bullard Offices Participate in Toys for Tots
If you participate in Toys for Tots, or would like to, our offices are drop centers for the toys. The Marines will be picking up on December 29th so anytime between now and December 18th you may drop off a new and unwrapped toy. I am told the greatest need right now is for children ages 0-2 and ages 10-13. A list of our office locations can be found at http://www.cbbullard.com/offices.html . You can also drop off at any Publix Grocery store location if that's more convenient.

Difference Between a "White Lie" and "Lying"

2010-11-29T10:04:00.000-05:00

When Rebekah & I were growing up our parents instilled in us the value of telling the truth. We were told the story of "The Boy Who Cried Wolf" over and over and I (Melissa) share that with my children now. Our parents had no tolerance for lying. With that said, there was always this gray area of "white lies." According to our friends and even some teachers, it was ok to tell a "white lie" so long as no one got hurt. It was hard to discern why that was ok, but plain out "lying" wasn't (a lie is a lie right)? Now that I'm older, I think I understand now.

If a husband or wife asks if it is okay to invite their parents over for dinner, the spouse would probably say 'sure' even if it wasn't 100% the truth. That was a 'white lie'. If a young boy dresses up as a monster on Halloween and asks his father if he looks 'really scary', it was okay for his dad to say 'YES'! That was a 'white lie'.

In both cases, the person telling the 'white lie' was saying what the other person wanted to hear. In both cases, there was no harm in not telling the 100% truth. In both cases, it was a 'white lie'. However, if we are not telling the 100% truth in order to save someone's feelings AND IT HURTS THEM, we are lying.

Why am I bringing this up in today's blog?

I believe there are still some in the real estate industry more worried about a homeowner's feelings than they are about telling the truth about the current value of their home. These agents are not necessarily malicious. They just realize they may disappoint a seller at a listing appointment by telling the truth about what the house will sell for. They find it difficult to deliver tough news. To make sellers feel better, they lie and sometimes they do it just to get the listing!

Good agents can deliver good news. Great agents know how to deliver tough news.

In today's real estate market, YOU NEED A GREAT AGENT. You need an agent that will tell you the truth, even when you don't want to hear it. You need an agent more worried about your family than they are about your feelings. You need an agent who can get the house sold! That's us. We have disappointed people by telling the truth. We have hurt people in their pockets by telling the truth. At the same time, we've helped dozens of families by telling the truth and we've moved them to the next chapter in life by telling the truth. It is always the right thing to do in our eyes. In the end, they always understand why we did what we did, even if they didn't like it.

What this means to you

If you are interviewing potential listing agents, demand they tell you the truth. Don't hire the agent that tells you what you want to hear. Hire the agent that tells you what you need to know. Reward their honesty.

A portion of this material was taken from: KCM Blog

Why Are Housing Prices Still Falling?

2010-11-12T09:39:00.000-05:00

In the past few days, three separate pricing reports showed that national house prices have begun to soften. Altos Research shows that prices fell 3.1% over the last three months. Clear Capital's Home Data Index Market Report shows that prices have fallen 5% in the last quarter. The Zillow Real Estate Market Report shows a 1.2% quarterly decline and a 4.3% yearly decline. Anyone selling a house should understand what is currently happening in the market and what impact certain factors will have on prices over the next six months. Let's look at those factors.

The Expiration of the Homebuyers' Tax Credit

The tax credit was introduced by the administration to stabilize house prices. The TARP Report spells this out quite clearly. The thinking was, if they rewarded purchasers to buy, they could lower the months' supply of housing inventory. By increasing demand and decreasing supply, prices would level off. And they did originally.

However, when they extended and expanded the tax credit earlier this year, the opposite occurred. When buyers came out, more property owners (individual homeowners who had previously held off putting their home on the market and banks with an ever increasing supply of foreclosures) decided that was the time to put their houses up for sale. Instead of lowering supply, it actually increased the supply of homes on the market. Inventory rose and demand faded with the expiration of the tax credit. Larger supplies and less demand will cause prices to fall.

Distressed Properties

Foreclosures and short sales have dramatically affected prices in almost every section of the country. Zillow has reported that 20.1% of all homes sold in September were foreclosures and an additional 27.3% were short sales. A foreclosure, on average, sells for 65% of full value and short sales sell for 85% of full value. Obviously, as more distressed properties sell the more the average sales price falls.

Distressed properties also have a major impact on appraisals. Even if a non-distressed property sells, the appraiser may use distressed properties to determine value in that neighborhood. We can see that distressed properties therefore impact prices even on the non-distressed properties sold.

We will be dealing with this issue for some time while banks clear the inventory of foreclosures they currently own. It was just reported that there is over 40 months of supply we must work through. Increased supply causes prices to soften.

Lack of Consumer Confidence

Many economists believe that the housing recovery depends on resurgence in job growth. It will be difficult for the buying public to have the confidence to make big ticket purchasers (including housing) until they are confident that they can stay employed. Demand will continue to be weak until the economy recovers. Weak demand causes prices to fall.

Bottom Line

Pricing of any item is determined by the ratio of supply and demand. Demand for housing will remain soft until the economy recovers. The months' supply of housing inventory continues to remain too high and is increasingly being made up of distressed properties which are sold at a discounted price. That means that nationally home prices will continue to fall.

Please call or email a Realtor (preferably us HAHA) to determine how the above issues will impact prices in your area. Make sure they tell you the truth not just what you might want to hear. Only by knowing the truth can you pick the best option for you and your family.

Content Taken from KCM Blog

Real Estate in Numbers: Clayton County, Fayette County, Henry County

2010-11-09T00:10:00.001-05:00

We previously posted a blog that shows the first quarter numbers versus the second quarter for Clayton County, Fayette County and Henry County. We're a month late, but here's how the third quarter compared:

Notice how in each county listed above, the second quarter numbers are better than the first and third. Wonder why? ...the home buyer tax credit. In order qualify for the credit, buyers had to be under contract by April 30th and closed by June 30th (the close date deadline ended up being extended later on, but originally it was June 30th). With more sales and a higher average sales price, I would say it worked; however, now that it's gone, we're seeing the true colors of the 2010 real estate market. Over to the right of each table, I've included the 3rd quarter numbers for 2009. Remember Melissa's post about waiting until next spring to list your home? This is a clear example as to why that might not be such a bright idea. For the folks who considered putting their home on the market in the 3rd quarter of 2009 but waited until early spring, look at the price differences:

Clayton County 3Q2009 VS 3Q2010: 12.13% decrease in value
Fayette County 3Q2009 VS 3Q2010: 3.15% decrease in value
Henry County 3Q2009 vs 3Q2010: 2% decrease in value

The numbers are clear... values are still declining! So if you're thinking of selling, unless you can afford to wait a few years, now might be the best time to sell. In a few months, the numbers will likely still be declining as our market hasn't hit rock bottom yet.

We can't wait until the day that we can post a blog about the increasing value and appreciation we're seeing across the southern crescent of Atlanta, but until then, we're calling it like we see it!

Will Your House be Worth More in the Spring?

2010-11-01T14:22:00.000-04:00

This is a question anyone thinking about selling must ask. Should they sell now or should they wait for the spring? Most years that would be an interesting question. There is a belief that many buyers come out in the spring and, with that increase in demand for housing, prices may appreciate. This year is unlike any year in recent memory. Most experts believe there will be continuing depreciation of home values throughout the next 18 months.

As we posted on recently, there may be a window of opportunity throughout the rest of 2010 as the banks try to straighten out the paperwork on thousands of foreclosures. Once that paperwork is corrected, the flow of distressed properties coming to the market at discounted prices will begin again.

This was mentioned in the latest Home Price Expectation Survey. Robert Shiller, MacroMarkets co-founder and chief economist said this:

"Over the past month, the average projection for 2010 nationwide home price performance improved slightly among our experts, but for each year thereafter it deteriorated. One plausible explanation for this month's more negative overall sentiment is recent news concerning foreclosure processing questions and the related possibility of extending the supply pipeline."

Other experts are also reporting that prices will soften next year

In October's RPX Monthly Housing Market Report, CEO Michael Feder commented:

"We are at a flex point in housing valuation. With record supply, already paltry demand and systemic threats to a possible correction, we remain terribly concerned about forward home prices.”

The very next day, in a special release, Clear Capital reported a "sudden and dramatic" drop in U.S. home prices:

"Most recent data shows a two-month 5.9% price decline representing a magnitude and speed of decline not seen since March 2009; similar declines for September and October expected to appear in other industry indices in coming months."

Bottom Line
If you plan to sell within the next year, you shouldn't wait for the spring market. Price the home at a compelling price to make sure it sells in the next sixty days.

Contract Chatter: Protect Yourself with Due Diligence

2010-10-28T17:20:00.000-04:00

Contract Chatter: Protect Yourself with a Due Diligence Period (Home Inspection)

We see all kinds of contracts come through - some are written perfectly, some are kind of sloppy, and some are just plain rediculous. Just because an agent successfully obtained their real estate license through the state of Georgia, doesn't always mean that they know the best ways to protect their clients. In fact, you don't really learn that through your licensing classes, it comes from experience. Here's one great tip to help protect you when purchasing a home- There is a section of the contract titled "Property Sold Subject to Due Diligence or 'As-Is'" (see above) on page 3 of the Georgia Contract, paragraph 11. This is one of the most important aspects of the contract. There are two options to this section: 1) Property Sold Subject to Due Diligence or 2) Sold As-Is. Be sure that you have a due diligence (inspection) period - Check that box! (yelling "check - that -box" kind of like they yell "move-that-bus!" on Extreme Home Makeover) There are many miconceptions about bank owned properties being sold as-is and so therefore, agents check the "as-is box" which is a huge mistake. Yes, it's true - many of them will make no repairs (but a great agent knows that sometimes they will - even if they say they won't. Be sure to have a good, aggressive agent working for you!). Even if a property is being sold as-is and without repairs, a buyer still has the right to have an inspection and terminate the contract with no penalties or risks should they uncover something they're not satisfied with. The due diligence period actually offers even more than the right to have an inspection. It offers the right to terminate the contract for any reason so long as you do so during the negotiated time frame, normally 7-10 days. By checking that awesome little box, you're creating an option contract until the due diligence period expires. After the expiration of the due diligence period, you risk losing your earnest money if you terminate and because the contract is a legally binding document, the seller could kindly request to see you in court for breech of contract.

We never recommend that our buyers pass up the due diligence period. We see a ton of offers/contracts come through with the as-is box checked and it always makes me wonder - why would you do that to your buyer? Although a buyer can still have an inspection when the "as-is" box is checked, they will lose their earnest money if the inspector found some major issues. Not fair, huh? Be sure to have an experienced agent representing you so that you're fully protected! A great agent will also be very detailed in helping you manage all of the important deadlines associated with contracts (due diligence period, financing contingency period, appraisal contingency period, etc).

Now on the flip side, understand the seller's perspective - it's not appealing to the seller to enter into a contract in which the buyer request a lengthy due diligence period. The purpose of this time frame is to give you enough time to inspect the house and feel comfortable with the condition - not for you to have a permanent out all the way up to the closing date. Asking for 25 days of due diligence will definitely put a bad taste in the seller's mouth and lead them to believe that you're not serious. A quick note to sellers -- denying a due diligence is a sure fire way to scare the buyer off. They'll be gone quicker than you can say "no due diligence." If you deny the right to an inspection it will seem as if you're hiding something. It's perfectly normal and acceptable to allow at least 5-10 days for due diligence.

If you have questions about the due diligence period or any other contract questions, give us a call or email us. Although we're not attorneys and can't offer legal advice, we can still help you understand the documents that we deal with on a daily basis!

Your South Side Source for Real Estate! Serving South Metro Atlanta: Clayton County (Jonesboro, Rex, Riverdale, Conley, Forest Park, Ellenwood), Henry County (McDonough, Hampton, Stockbridge, Locust Grove), Fayette County (Peachtree City, Fayetteville, Brooks, Tyrone), Spalding County, Pike County, Rockdale County, Butts County (Jackson Lake), etc.

Best Time to Buy AND Sell?

2010-10-27T10:07:00.000-04:00

If you know a great real estate professional (AHEM.......Us), you might be questioning them right now. They may tell a friend of yours in the afternoon that this is a great time to buy a home and in the evening tell another friend that they have to lower their price in order to sell their home. Wait a minute. How can it be a great time to buy if prices are falling? Is the real estate agent just saying this to make a sale? Actually, the agent is 100% correct. Perhaps for the first time in American real estate history, you must buy now and you must sell now. How can this be? Because what is important to the buyer is different than what is important to the seller. Let us explain.

The most important thing to the seller: PRICE

Every seller is most concerned with trying to get the best price possible for their home. In order to do that, they must sell now. Banks repossessed the highest number of foreclosed homes in history last month. These houses will come to market at dramatically discounted prices. This is the main reason analysts are calling for another dip in prices over the next eighteen months. The best advice a seller can receive is to sell their home now before these foreclosures come to market.

The most important thing to the buyer: COST

Price plays a part in the buyer’s decision. However, the most important thing to most buyers is the cost – the mortgage payment they must pay every month. That payment is determined by the price of the home AND THE INTEREST RATE ON THE MORTGAGE. Rates are artificially low because of government intervention. That will not last forever.

The National Association of Realtors (NAR) has projected that rates will rise over the next seven quarters. What will that do to the cost? Here are NAR’s projections and what impact it will have on a $100,000 mortgage:

As we can see, the interest rate has a major impact on the COST of the home. Even if prices continue to fall, the cost may not go down if interest rates increase.

Bottom Line
Your real estate agent is trying to give the best advice they can to every family they work with – even if that advice seems to be counter intuitive.

KCM Crew, October 26, 2010

2010-10-19T10:25:00.001-04:00

5 Reasons You Should Sell Your Home Now!

Selling your house in today's market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.

We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the 'lookers' are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.

The Chicago Tribune stated in an article last week that sellers who want to 'trade up' should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.

Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 ... housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.

Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

January – 3,277,000

February – 3,531,000

March – 3,626,000

April – 4,029,000

You won't have to worry about this increasing competition if you sell now.

5. You have less 'discounted' inventory with which to compete.

This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.

Bottom Line

If you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don't miss it!

Courtesy of KCM Blog

2010-10-05T10:45:00.000-04:00

If HE Says It Is Time To Buy a Home, BUY A HOME!

"If you don't own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one."

– John Paulson 9/27/2010

WOW! That's a powerful statement.
There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding 'YES'. Here are several reasons why.

Who is John Paulson?
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?

According to Forbes John Paulson is:
"a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago."

According to the Wall Street Journal Paulson is:
"a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were."

What did other financial players think of his statement?
The Wall Street Journal agrees with Paulson:

"Ignore the critics. The odds have to be on his side...It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again."

And Forbes said:
"As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as "your debt and interest payments get locked in at record lows, while the price of your home will rise."

Are others also saying now is the time to buy?
Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:

The Wall Street Journal

Professor Karl Case, founder of the Case Shiller House Pricing Index

The wealthiest families in the country and

70% of everyone else in America

Bottom Line
Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.

Home Hunting with a Creative Mind!

2010-09-27T01:08:00.001-04:00

I'm a blog-o-holic - I follow several real estate and home decorating blogs like a sports fanatic follows ESPN. As a Realtor, I love looking at houses, so therefore, I can spend countless hours on the internet looking at houses and browsing for new decorating ideas. I stumbled across two photos on a blog dedicated to decorating, yet it applies to so many buyers that I've worked with that I knew I wanted to share. These two photos are so simple, but they say so much. They are "before and after" photos of a kitchen. Check them out below and see what a dramatic change took place:

BEFORE

AFTER

Impressive, huh? Any modern makeover is always exciting, but there's something even more exciting... Look carefully at the pictures. Do you notice that there are only 2 major features that are different? Paint and cabinet hardware. They painted the cabinets one color and the wood paneling up top another color for contrast. They also changed out the cabinet hardware and added a pop of color with the shade on the window. The tile backsplash is the same, the appliances are the same, the countertops are the same, so is the sink and the faucet. An updated and modern kitchen for $150 or so. The point I want to make to buyers looking for a home, is to look with an open mind and think of the simple changes that you can make to update a house and make it your home. Need inspiration? I've got 1254 home decorating blogs that I can send you links to! :)

There's also a moral of the story for sellers - can you guess what I'm about to say? You should also think of the small things you can do to update your home and make it more appealing to buyers. The kitchen is one of the most important rooms of a house when it comes to selling. A tranformation like this would be well worth the $150!!

Serving the Southern Crescent of Metro Atlanta: Henry County, Clayton County, Fayette County, Coweta County, Spalding County, Pike County, Rockdale County, Butts County, etc. McDonough, Stockbridge, Locust Grove, Hampton, Jackson, Conyers, Fayetteville, Brooks, Tyrone, Peachtree City, Senoia, Newnan, Sharpsburg, Griffin, Barnesville, Riverdale, Forest Park, Jonesboro, Rex, Morrow, East Point, Hapeville, etc.

Incredible Time to Buy in Atlanta & It's Suburbs!

2010-09-16T08:39:00.002-04:00

Interest Rates are At a 40 Year Low and You Can Live in Atlanta and its Suburbs for Less than $800 a Month!

Browsing the Yahoo page this morning, I came across an article discussing 10 places you can live for $800 or less that was taken from US News. Here's the clippings I want to share with you.

"While the nation's real estate crash has been a nightmare for homeowners, it has created some outstanding opportunities for would-be buyers. Home prices in 20 major cities dropped 33 percent from the summer of 2006 to the spring of 2009--and in certain markets, the plunge was even steeper. At the same time, the federal government's efforts to revive the housing market have helped drive financing costs to record lows. Thirty-year fixed mortgage rates fell to an average of 4.32 percent for the week ending September 2. That's the lowest level in nearly 40 years of record-keeping. Lower property values and dirt-cheap mortgage rates have combined to restore affordability to many real estate markets that were once wildly overpriced. "Right now, housing is about as affordable as it has been since at least the 1970s," says Patrick Newport, a U.S. economist for IHS Global Insight.

To see how far your real estate dollar will stretch in different places across the country, U.S. News examined housing costs on a monthly payment basis. We started with the National Association of Realtors' median home price data for 159 distinct metropolitan statistical areas as of the second quarter of 2010. After subtracting a 20 percent down payment from a market's median price, we plugged the remaining figure into a mortgage calculator using a 4.32 percent interest rate on a 30-year fixed loan. The exercise produces a monthly payment figure for mortgage principal and interest, which represents the bulk of most property owners' monthly housing costs. (Note that this figure does not include monthly costs for utilities, insurance, or taxes, which can vary a great deal from one place to another. Nor does it reflect the one-time costs associated with a home purchase, such as the down payment and closing costs.) Using this calculation, here is a look at 10 places where you can buy a home for less than $800 a month"

1. Austin, Texas
2. Sarasota, Florida
3. Albuquerque, New Mexico
4. Minneapolis/St. Paul, Missouri
5. Columbus, Ohio
6. Phoenix, Arizona
7. Columbia, South Carolina
8. Boise, Idaho
9. Pittsburgh, Pennsylvania
10. Atlanta, Georgia: With a young, fast-growing population, Atlanta is an exciting city in the heart of the South. The median home price in the Atlanta area was nearly $123,000 in the second quarter of this year, up slightly from the same period a year earlier. After a 20 percent down payment--or $24,600--monthly payments for mortgage principal and interest on a median-priced Atlanta home come to $488.

One Note I want to make about this article is that they base everything on a 20% downpayment. Don't fret if you can't do that! There are loan products that offer as little as 3.5% down and even some that still offer 100% financing and just $100 down. Even with those little down payments we can find you a home for right around $800 a month. We're closing two very nice homes this month where our buyers are going to be paying around $800-$900 a month. That's cheaper than rent! Call us and we'll explain the process!

Home Prices Continue to Fall - Put Your House on the Market Now to Obtain the Highest Price! Next Year Will Not be Better!

2010-09-10T11:10:00.002-04:00

The next three months will be interesting for home prices.
The impact of the homebuyers’ tax credit is fading from the market and so are the buyers. We must realize that in September, October and November of last year buyers were rushing to buy a home before the expiration of the original tax credit (November 30). There is no such impetus this year.

As evidence, this week’s Mortgage Bankers’ Association Weekly Application Survey showed that mortgage purchase applications were: well below levels seen prior to the expiration of the homebuyer tax credit, and is almost 40 percent below the level recorded one year ago.

At the same time, the Wall Street Journal reported: Housing inventories rose in many U.S. cities for the eighth straight month in August in a sign of the continued headwinds facing a soft housing market … Inventories nationally remain at their highest levels since November 2008.

We’re back to the theory of supply and demand. Demand is softening as the supply of homes for sale is escalating.

Bottom Line
There will be tremendous downward pressure on prices throughout the rest of 2010 and going into 2011. You should sell as soon as possible if you are thinking of selling in that time frame. Don't think like some sellers......"Oh, I'll just wait until prices come back up in a year or two." They aren't coming back up that soon!

Appraisals Under More Scrutiny!

2010-09-04T00:10:00.000-04:00

Home Appraisals Come Under More Scrutiny!

By: Marcie Geffner of Bankrate.com

Homebuyers and sellers who expect an appraisal to sail through to closing without a hitch may be surprised to discover that home appraisals today can be problematic. The reasons for the change are complex, but there's no question that mortgage lenders have started to demand more reviews and do-overs.

Rob Johnson, vice president of lending at San Diego Funding, a mortgage company in San Diego, attributes the increase in home appraisal reviews to lender-specific requirements imposed because of past problems with certain types of home loans. For example, a mortgage lender might demand more scrutiny of an appraisal if the borrower has a marginal credit score or high debt level relative to income or if the property was a foreclosure that was fixed up and flipped by an investor.

Appraisals may lag home prices

Home prices are also a factor. When prices are on the rise, perhaps because buyers have bid more in a multiple-offer situation, appraised values might still be lower. The reverse is also the case.

"Any time you have a market in transition, appraisals aren't going to keep up because the appraisal is based on historical data," Johnson says.

Inadequate "comps" can present problems as well. ("Comps" are recent sales of nearby homes that are similar, or comparable, to the home that's the subject of the appraisal.) The mortgage lender may deem the comps inadequate if the homes were too far away or were sold in such nontraditional circumstances as a short sale or foreclosure or if the sales occurred too long ago. If the comps aren't sufficient, the lender may order a review or second home appraisal to verify that they were chosen correctly.

"If (the appraiser) can't find three comps within that area and has to expand, that is where you start to get appraisal reviews or secondary appraisal requirements to make sure the appraisal was valid or that (the lender) was comfortable," Johnson says.

The term "second appraisal" generally refers to a new, start-from-scratch valuation. An appraisal review could be a "desk review," in which the appraisal gets a second look by an office-bound person, or a "field review," in which the appraisal is subject to another drive-by or in-person inspection of the property. A review is more common than a second appraisal.
New guidelines distance lenders from appraisers

Leslie Sellers, president of the Appraisal Institute in Chicago, says a lender might order a new home appraisal if the first one was based on factual errors or the appraiser wasn't competent in the area.

Some second appraisals, he adds, result from a misunderstanding of the Home Valuation Code of Conduct, guidelines that were meant to prevent undue pressure being placed on appraisers to inflate home valuations, but that may have caused some lenders to cut off communication with appraisers."The banks are thinking they can't even talk to the appraiser," he says.

Sellers can offer comps to appraiser

An appraisal review can cost several hundred dollars while a second appraisal generally involves a second full fee, says Sara Schwarzentraub, owner of Inter-State Appraisal Service in San Diego. These costs usually are paid by the buyer.

"It's commendable that the lenders are being cautious and having stricter criteria to protect themselves, because in the long term that protects everybody, but it does make it more costly," she says.

Home sellers can offer the appraiser information that might affect the appraiser's opinion of the home's value. This information is best handed over before the appraisal is prepared. "If you know of a sale that's similar to your house and it was a foreclosure, short sale, divorce or anything of that nature, make the appraiser aware of that," Sellers says.
Real-estate brokers can help buyers and sellers find comps to offer the appraiser, Johnson says. If the broker believes comps may present a problem, the buyer and seller can plan accordingly. "A good real-estate agent is aware of these issues. Many times, an agent will call us and say, 'I know we are going to have problems with comps on this," he says.

Buyers and sellers also can agree on longer time frames for the home appraisal contingency and closing date. Schwarzentraub says that asking for a 45- or 60-day closing, rather than 30 days, is not unreasonable.

Buyers are entitled by federal law to a copy of any appraisal for which they've paid a fee. Buyers should look over the appraisal and notify the lender of any errors that could have affected the appraiser's opinion of the home's value.

What This Means for Stephens & Stephens and You
For Our Sellers: We are always brutally honest with our sellers about values. We pledge to always tell you upfront what we expect your house to sell for and to back it up with comps from the area. This helps avoid any shock when the appraisal comes in. Rebekah and I always tell our sellers that we have to sell the house twice, the first time to the buyer, and the second to the appraiser (meaning we have to make them see the value in the home too). We rarely run into appraisal issues because of this, but every once it awhile it still happens. When it does, we do our best to show the appraiser where we are coming from and provide additional comps or information on the home.

For Our Buyers: Before our buyers place an offer on any home, we'll show you a Comparative Market Analysis (CMA) on the neighborhood or area to show you what homes are selling for. After reviewing it with the buyer, we'll help make a decision about a fair offer price. The comps we review are likely the same comps an appraiser will look at, therefore we already kind of know what the comparisons are going to be. If the comps don't support the seller's asking price, then obviously we advise our buyers to offer less and back it up by showing the comps. We also add protection for our buyers by adding an "Appraisal Contingency" clause, meaning the house must appraise for the contract price or you'll have the right to renegotiate or walk away.

Absorption Rates for the South Metro Area

2010-08-27T10:37:00.002-04:00

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.

Landscaping = Increased Resale Value

2010-08-25T01:12:00.000-04:00

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.

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

2010-08-10T01:08:00.000-04:00

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.

Awesome Decorating Idea!

2010-08-09T01:19:00.000-04:00

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

Home Inspections & Rachael Ray's Mold Issue

2010-07-29T10:31:00.001-04:00

I would be lying if I said I don't keep up with celebrity gossip. I subscribe to US Weekly so it's certainly no secret. This blog is in no shape, form, or fashion meant for celebrity gossip, but I when I read this, I knew I wanted to share... the famous Food Network ~~chef~~ cook, Rachael Ray, and her attorney husband are suing the home inspection team that inspected their Long Island, NY property when they purchased it in 2007 for $2.9 million due to a mold & water damage problem that they believe the inspectors were negligent in finding and documenting. Yikes!

Moral of the story: Home inspections are extremely important! Don't just jump online and hire the first home inspector that pops up on Google. Do some homework and look for an inspector that has a great deal of experience, certifications, professional affliations, etc. If you need recommendations, we'll be happy to provide a few. Ask potential inspectors to see a sample report. If possible, attend the home inspection so that you can see your future home through the eyes of a professional. Although you'll be given a written report, it will be helpful to see any issues in person while the inspector is there to explain and you'll have an opportunity to ask questions. Most importantly, don't have a friend or relative do the inspection no matter how "good" they are at "things like that." Not having to pay for an inspection (approx. $275-350) seems like a good idea, but that could cost you thousands in the long run.

If you need a home inspector recommendation for properties in any of the following cities, please let us know! McDonough, GA, Hampton, GA, Stockbridge, GA, Locust Grove, GA, Jonesboro, GA, Morrow, GA, Forest Park, GA, Fayetteville, GA, Peachtree City, GA, Tyrone, GA, Newnan, GA, Jackson, GA, Conyers, GA, Riverdale, GA, Griffin, GA, etc.

Many See a Future in Real Estate!

2010-07-21T00:31:00.000-04:00

"Many See a Future in Real Estate"......that's the title of the John Adams article in the Sunday "Homefinder" section of the AJC. In the article John describes a recent meeting he attended with members of the nonprofit Georgia Real Estate Investors Association. This group believes there's money to be made in real estate and they are taking advantage of the depressed prices in the Metro Atlanta Area. We think there's money in it too!

He states that most of the people in attendance were not real estate agents and brokers, or savvy investors, but rather "regular" people who work 9-5 jobs and invest in real estate in the evenings and on weekends...."there were doctors and lawyers, plumbers and painters." We at Stephens and Stephens believe that REAL ESTATE INVESTING IS FOR EVERYONE...well almost everyone.

The below is an excerpt from the article explaining one example of an investment tactic.

"Relatively new homes in nice starter neighborhoods can be had for as little as $40,000. After a total renovation costing perhaps $25,000, the house feels and looks new, and can be rented to a renter-purchaser who hopes to own the home by building good credit. The investor refinances based on the new appraised value, maybe around $100,000 and collects rent with a positive cash flow every month. In a year or two, the renter may buy the house, finalizing a profitable transaction for the investor and helping stabilize the neighborhood through renovation."

Gary Keller, who wrote The Millionaire Investor said it best when he said "Anyone can do it, but not everyone will."

We've worked dozens of investment deals. We can help you understand how investing may be a great money-maker for you. There's plenty of deals, great pricing, and an abundance of available real estate in the Clayton County, Henry County, Fayette County, and other Metro Atlanta areas. Please don't hesitate to call or email so we can make money for you!

2010-07-09T23:15:00.001-04:00

ATTENTION SELLERS!

Please notice that the Metro Atlanta area (Clayton County, Henry County, Fayette County, and so on) is not expecting a "recovery" until somewhere between 2015-2025 according to some very reliable economists and resources.

This means that waiting to sell IS NOT THE RIGHT ANSWER, unless you have many many years to wait. If you don't have that kind of time to wait then please don't listen to people who say, "just wait a year or two until prices come back." In a few years prices may be even lower!

The fact of the matter is we're expecting continued depreciation of approximately 7% as an overall average for Georgia and even more depreciation in areas that are hard hit with foreclosures (hint hint hint hint.....that's us in South Metro Atlanta - Clayton County, Henry County, Fayette County, etc).

If you are considering selling, now many be the time....as much as it hurts! Call us for a free market analysis. There's no pressure. We're here to help!

1st Quarter vs. 2nd Quarter Comparisons: Clayton County, Henry County, Fayette County

2010-07-06T02:33:00.000-04:00

2010 1st Quarter vs. 2nd Quarter Real Estate Statistics

for Clayton County, Henry County & Fayette County

These statistics are pulled from the Georgia MLS and are subject to changes, errors and omissions.

4th of July Events in McDonough, Peachtree City, Newnan, Hampton

2010-07-02T23:19:00.001-04:00

Happy 4th of July!

Things to do in Henry County, Fayette County, Coweta County, etc.

Happy 4th of July! We're so thankful for our freedom & appreciate all of our military who continue to make it possible! As you enjoy all of the normal 4th of July festivities, remember our troops! If you're looking for some fun things to do this weekend, here are some ideas:

Georgia Independence Day Festival at Nash Farm

4361 Jonesboro Road, Hampton, GA

July 3rd & 4th from 3pm to Dark, $5 Admission (ages 6+)

Scenes of the Revolution, live music & dancing, living history, kids zone,

festival foods, shopping, pony rides, face painting, rock wall & much more!

Starlight & Fireworks at Panola Mountain State Park

2600 Highway 155, Stockbridge, GA

July 3rd at 7:30pm

Listen to whippoorwills & owls as fireworks shower Atlanta's skyline.

Bring your own flashlights, refreshments & comfortable clothing!

4th of July Parade in Peachtree City

Peachtree City, July 3rd at 9:00am

Peacthree Parkway South in front of Village on the Green Subdivision

and proceeds north to McIntosh Trail, ending at Huddleston Elementary

Ice Cream Social on The McDonough Square

July 4th on the Square, McDonough

Patriotic Entertainment and Free Ice Cream