Barry's Real Estate Blog

These tips answer many common home buyer questions.  They apply to whether your buying a high rise condo in Atlanta, a townhome in Smyrna or a single family home in Marietta or anywhere in Georgia.

The classic dilemma for many homeowners is whether to buy or sell first.

There is no “right” answer. It depends on your specific circumstances and finances.

If you sell your current home first but haven’t found the right new home, you may need to rent for a period of time until you find the right home.  Having cash in hand is always an advantage and may allow you to negotiate better terms since you are now waiting for your other home to sell.  No one wants to move twice but sometimes it can have an advantage.

Please call or email me when you’re ready to discuss your options or if you would like a valuation of your current home. Please don’t hesitate to contact me if I can answer any questions.

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All Home Buyer Tips

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These tips answer many common home buyer questions.  They apply to whether your buying a high rise condo in Atlanta, a townhome in Smyrna or a single family home in Marietta or anywhere in Georgia.

Please don’t hesitate to contact me if I can answer any questions.

RELATED POSTS:

All Home Buyer Tips

Click here to read original post.

These tips answer many common home buyer questions.  They apply to whether your buying a high rise condo in Atlanta, a townhome in Smyrna or a single family home in Marietta or anywhere in Georgia.

When you’re thinking about making a move, here are a few things you should consider:

* Being clear on why you are moving.

* Deciding when you want to make your move.

* Considering how much money you would like to spend.

* Thinking about what type of home you would like .

* Deciding where you would like to live.

The next step is usually finding out how much you can qualify for and deciding the type of financing that will work best for you. I am happy to refer you lenders I work with who can answer your questions and get you pre-approved.

As you get more serious about buying, you will want to speak with a lender about getting pre-approved. The lender will determine how much you can borrow based on financial information you provide.

Once you’re ready to start the process, I’d be happy to meet with you help outline your goals and needs and discuss the what to expect during the buying process. Please don’t hesitate to call or email me for additional information about the buying process. My goal is to provide you with practical information as you consider your next move. And, when you’re ready to make your move, I’ll help you find your dream home and handle all the details of the transaction, so all you need to do is pack!

Please don’t hesitate to contact me if I can answer any questions.

RELATED POSTS:

All Home Buyer Tips

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These tips answer many common home buyer questions.  They apply to whether your buying a high rise condo in Atlanta, a townhome in Smyrna or a single family home in Marietta or anywhere in Georgia.

What type of home are you looking for?

The list below may help you clarify your thinking on what is important to you when you are ready to purchase.

* What type of neighborhood would you like to live in?

* What monthly payment are you comfortable with?

* What type of home interests you? (one-story, two-story, split-entry, townhouse, condo)

* What style appeals to you? (contemporary, traditional, ranch)

* Are schools a factor?

* How long of a commute are you comfortable with?

* How many bedrooms and bathrooms do you need?  How many do you want?

* What features are important to you? (basement, fenced yard, office, etc.)

* What about exterior features such as # of garages, corner lot, cul de sac?

* Which of these are MUST have and which are NICE to have?

When you are ready to start your search, I will be happy to help you find a home that meets your needs. My goal is to make this a fun and enjoyable experience and to use my experience to find you the right home.

Please don’t hesitate to contact me if I can answer any questions.

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All Home Buyer Tips

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President Obama signed the bill extending and expanding the home buyer tax credit.  The credit was part of a bill that included more aid for jobless workers and broadened tax breaks for businesses. The measure passed the House by a vote of 403 to 12, one day after it was unanimously approved by the Senate.

HOME BUYER CREDIT EXTENDED

The bill also extends the $8,000 tax credit for first-time home buyers until April 30, 2010.  The credit was previously set to expire on November 30, 2009.  The new law expands the credit to cover more affluent buyers. The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

HOME BUYER CREDIT EXPANDED

The new bill also creates a new $6,500 credit for repeat buyers who have been in their current home for at least five years.

The credit will be available only for the purchase of principal residences priced at $800,000 or less.

The credit does not have to be repaid as long as you stay in the house is your principal residence for three years after the purchase date. However, this would not apply in the case of a member of the Armed Forces, military intelligence or Foreign Service who is on extended duty. In addition, members of the military who have been deployed overseas for 90 days or more in 2008 or 2009 would have until April 30, 2011, to claim the home buyer tax credit.

INTEREST RATES FALL BELOW 5%

The Mortgage Bankers Association said rates on 30-year fixed-rate mortgages fell below 5% for the first time in four weeks.  The 5% level is something of a psychological tipping point, typically sparking home loan refinancing activity.

The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week to Oct. 30 increased 8.2% to 608.3.  Low mortgage rates, high affordability and the federal government’s $8,000 tax credit for first-time home buyers – part of the stimulus bill – have helped pave the way for stabilization.

The National Association of Realtors said pending sales of previously owned U.S. homes unexpectedly rose in September to their highest level in nearly three years ahead of the Nov. 30 expiration of the tax credit.

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These tips answer many common home buyer questions.  They apply to whether your buying a high rise condo in Atlanta, a townhome in Smyrna or a single family home in Marietta or anywhere in Georgia.

There are many advantages to home ownership:

* Appreciation–Your home can increase in value over time, increasing your equity and your

personal net worth.

* Space–A house generally offers you more living space than a rental apartment, along with the ability to remodel the existing space or add on.

* Enjoyment–Plain and simple, most homeowners take a great deal of pride in knowing they own their own home.

* Financial–In most cases, the mortgage interest you pay is tax deductible.

When you are ready to purchase a home, I welcome the opportunity to help you. Please don’t hesitate to contact me if I can answer any questions.

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All Home Buyer Tips

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Effective October 30, 2009, Re/Max Communities will officially become Atlanta Communities Real Estate Brokerage.  Having opened in 1990 as a Re/Max franchise, this office has been ranked as one of the top companies and real estate brokerages in Atlanta.  In fact, from 2002-2004, Re/Max Communities was the largest franchise office worldwide out of over 4,200 offices in 43 countries.

Positioning the company to react ahead of changes in the market and not after the fact, has been the focus of the owners since the beginning. As we are in the midst of one of the most challenging times in the real estate industry, now is the time to innovate and and evolve.  Real estate is local, high-touch, relationship driven profession and business models must evolve to reflect this reality in order to better serve our clients.

To that end, the broker/owners decided that the revenues spent by the company and charged to the agents in order to belong to a national franchise should be re-directed to local marketing efforts that actually provide results and strengthen our client relationships and value.  All company principals and staff will remain the same.  Both of our office locations (Johnson Ferry Road in Marietta and Barrett Parkway in Kennesaw) will remain the same.  In essence, all of the key components that have made this company a leader in the market will not change.  By becoming an independent organization, the agents will now be free to innovate and stay ahead of the market.

This transition will be seamless for all clients.  The transition is in progress and listings are being moved over to the new company name in both MLS systems.  In the next week, you will see our yard signs pop up all over the city.  And, in a few weeks, it will seem as if Atlanta Communities was always here.

All of my contact information (cell, fax, email, website, etc) remains the same as before.  Our office phone number will change to 770-240-2001 and my extension is 385.  I look forward to continuing to serve everyone who is looking to buy or sell a home in the north Atlanta area.

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According to WSJ.com, Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.

The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.

The new provisions are aimed at broadening availability of the credit beyond first-time buyers and giving the weakened real-estate market a bigger boost while preventing real-estate investors from benefiting. Many property experts have cited the credit as a reason for signs of recovery in the housing market in recent months. But that recovery was somewhat undercut by the September drop in new-home sales reported Wednesday.

The credit would be extended from its current expiration date of Dec. 1 to all contracts entered into by April 30, and closed before July 1. It is expected that income limits on people claiming the credit would be increased to $125,000 for singles and $250,000 for couples, from the current $75,000 and $150,000, aides said. The credit phases out for people making more than those amounts.

While Senate lawmakers appear to have reached a deal on the substance of the tax credit, they are still at odds over how it would be brought to the Senate floor. Senate Majority Leader Harry Reid (D., Nev.) hopes to add it to a bill currently on the Senate floor to extend federal unemployment insurance benefits. But agreement on that hasn’t been finalized.

Bloomberg News adds:

At this time, it is believed that the credit will allow anyone purchasing (even if the property is not closed) a home by April 30, 2010 to participate and receive the full credit available. The credit will be continued (but reduced by 2% each 90 days) through the end of 2010! The credit will be slightly lessened, but it will be renewed and this extension should allow the market to continue to recover into and through next summer’s selling season. Of course, there’s always the possibility that it could be renewed at that time, as well.

The credit would be cut slightly to a $7,290 cap. Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples.

BusinessWeek.com added this qualifier but I have not seen it mentioned anywhere else:

* The credit could only be used for homes selling for $800,000 or less.

CNN.com states:

House Speaker Nancy Pelosi has indicated she also is interested in extending the homeowner credit, but House leaders have yet to endorse any one bill.

***********************************************************************

As you can see, in the 12 hours since this news has been released, there are several versions being reported.  I am sure we will get more details and facts in the next few days.  The good news is that is appears the tax credit will get extended and enhanced in some form.

It is unlikely that the Georgia state tax credit will be extended beyond November 30, 2009.

This is a compilation of information gathered from Bloomberg.com, CNN.com, BusinessWeek.com and WSJ.com.

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The most common questions I am asked are: Is the market getting any better and is activity picking up?

The problem in providing an answer is that is really depends on the day you ask.  Over the last 12 months, there really has been any consistent trend in the market.  Some weeks see lots of activity and interest while others have no activity.  It has been this lack of consistency that has made this such a difficult market.

Positive News

Interest rates continue to be low (in the high 4%/low 5% range) and the $8000 federal tax credit for first time buyers and $1800 Georgia state tax credit for all buyers are good until the end of November.  In fact, houses are probably the most affordable they’ve ever been.  And, if you’re a home buyer, it’s still a buyer’s market.

On The Other Hand

National unemployment in about 10% and Georgia’s is slightly over 10%.  Job losses and uncertainty have undermined the confidence of home buyers.  In addition, while money is cheap, it is also still difficult to get a mortgage if your credit is not very good.

To get a clear picture of the overall Atlanta market, I have broken down the sales trends for 2006 through 2008. For 2009, I kept my original analysis period of January thru April  and have added May thru September.  This way you can see how the year is trending. The chart below shows the trends for all of the Atlanta using the FMLS data for single family homes.

EXPLANATION OF CHART

This chart shows the number of homes sold in 2006, 2007, 2008 and 2009 (thru September). 2007 and 2008 are also broken down into Jan-July an Aug-Dec time frames.  The last column represent the the number of currently active listings and their average asking price.  The actual data for each bar and line is shown at the bottom of the chart.

ANALYSIS

Units Sold – 2006 – 2008

2006 saw 46,437  homes sold with that number increasing to 58,115 in 2007.  We know that that market slowdown began in summer of 2007.  This is clear by looking at the breakdown of 2007 sales: 37,497 units from Jan-July and 20,618 units from Aug-Dec.  Total units sold in 2008 declined to 46,677 with the second half of the year seeing only 18,178 homes sold.

Units Sold – 2009

Thru April 30, 2009, 11,631 homes sold.  If we extrapolate this for the entire year, 2009 would see approximately 35,000 homes sold.  From May thru Sepetmber, 21,317 homes sold with an average sales price of $207,000.  This represents an 83% increase in home sales AND a 12.5% increase on average sales price.

There are currently 37,674 homes on the market which is approximately 15% less homes than at the end of April. This also represents 10.3 months of inventory at the current absorption rate. Clearly we are seeing a positive trend in sales. However, inventory is still above the 7-9 months which would represent a balanced market.  In addition, the current average list price of $361,000 for active listings is way too high and will need to come down in order to sustain this sales trend.

Average Sales Price

In 2006, the average sold price was $264,000.  This increased slightly to $265,000 in 2007.  The average sold price peaked in the first half of 2007 at $269,000. By 2008, the average sold price was down to $229,000.  For the first four months of 2009, the average sold price was $184,000. From May thru September, the average sales price increased by $23,000, approximately 12.5%, to $207,000.

Average List Price

The average list price in 2006 was $271,000.  The difference between the average list and average sold in 2006 was 2.7%.  By 2007, the gap between list and sold price increased to 3.4%.  In 2008, the gap had further increased to 6.1%.  For the first four months of 2009, the gap reached an amazing 20.0%. From May thru Deptember, the gap between asking and sold prices had narrowed to 9.1%.

Average Days on Market

This data is not shown on the chart but in the table below:

2006: 76

Jan – Jul 2007: 84
Aug-Dec 2007: 91
2007: 87

Jan-Jul 2008: 95
Aug-Dec 2008: 91
2008: 94

Jan – Apr 2009: 98
May – Sept 2009: 93

As we can see, the average days on market has decreased slightly increased from to 98 to a current 93 days.

Please feel free to contact me with questions about your specific market or community.  You can request a FREE home market analysis here.

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