Sunday, April 3, 2011

Atlanta: #1 city to buy property in the USA

The 10 best cities for home buyers

You better believe it -- the real estate market is back. It's time to buy again, and here are the 10 cities with the most affordable homes, according to a new report from Deutsche Bank.

 
 
Atlanta
 
Atlanta

Rent as % of after tax mortgage payment: 151.2%
Median home price change, 2006-2010: -33.2%

Many of the cities on this list now have the most affordable housing simply because their real estate crashes were so much more pronounced than elsewhere in the nation. The farther the prices fall, the sooner it inevitably becomes more affordable to buy than rent.

Atlanta is no exception. It tops the list with average monthly rent of about 50% more than the average after-tax mortgage payment. The metropolitan area had the dubious distinction of leading the nation in home construction during most of the decade before the bubble burst. Despite the fact that it now has the most affordable homes in the nation, however, prices continue to slide in Atlanta -- down nearly 14% year-over-year in February. When will those Atlanta renters recognize the clearance sale going on all around them?

(Deutsche Bank's study measures affordability in two ways: the share of income that Americans are paying to own a home, and the cost of owning vs. renting.)

Wednesday, January 26, 2011

Fun article about house re-model horrors

NEW YORK (CNNMoney) -- You've heard of McMansions, but what about Frankenhouses?
These are homes that have been "renovated" to feature things like pipes running through living rooms, bedrooms strung together like garlic cloves, and fluorescent floors

It's scary what people do to their homes.

HomeVestors -- famous for its "We Buy Ugly Homes" billboards -- specializes in buying these homes that no one else would want. In fact, they're often so bad that they have to label listings as "for investors only" because they're not suited to ordinary buyers.

For example, those pipes running through the living room? They would have to be completely redone before the house could even get inspected.

"We get a lot of the houses after real estate agents have given up on them," said David Hicks, CEO of HomeVestors.

He calls them horror houses and marvels at some of things that former owners must have thought were brilliant ideas at the time. Here are some of the worst creations he's found:

Dysfunctional floor plans: Someone needed more bedroom space so they added on, but it messed up the traffic flow. It was much worse than just having to walk through one bedroom to get to another. "You had to walk from the living room through a bedroom to get to the kitchen," said Hicks.

Imagine stumbling through Grandma's boudoir whenever you hungered for a late-night snack.

5 bedrooms - 1 bath: It's a hard sale when the house has many more bedrooms than baths. Five full bedrooms with a single bath, for instance, makes the morning traffic jam very tough.

It's even harder if the bath is completely misplaced. HomeVestors bought a house where there were three bedrooms on the second floor and two on the third, a total of five. Yet there was a single bath located in the basement.

"If you had to go, you had to go down three flights in the middle of the night," said Hicks.

Poorly converted garages: Needing more space, homeowners often make new bedrooms out of old garages. But thoughtless conversions ruin the curb appeal, with the new residential wing still looking like the old garage.

"It ends up looking really bad," said Hicks, "and you don't even have a garage anymore."

Big kitchen - no living room: Some homeowners have hobbies or interests that they devote major floor space to -- at the expense of everything else.

"One owner converted the living room into a huge kitchen," said Hicks. "They had a great kitchen, complete with a huge island, but no living room."

Bedrooms with no closets: This can evolve in a couple of ways: The previous owner could have removed closets to increase the bedroom's floor space or added bedrooms to a house where there was too little room for closets.

Whatever the cause the effect on buyers is negative. Read my lips: People want closet space. Look at the homes-for-sale ads. What do they say: "Great closet space."

Really bad colors: An awful color scheme may turn off homebuyers so much that they are blind to the home's other virtues. "We got one house that had multi-colored, neon-bright floor tiles in the entryway," said Hicks.

Buyers entered in, they exited out.

Jungle fever: Everybody loves trees and shrubs, but let it get too lush and it turns into a problem.
"When the vegetation starts to block the light and make the interior real dark, that's bad," Hicks said.

Missing parts: Neglected houses can look hideous, true, but they can be dangerous as well. 
HomeVestors purchased what was basically a nice old place in Hampton Roads, Va., but it had several issues, the worst of which was an outside basement entrance to nowhere -- except basement. It was essentially just a big open pit.

"We lose more real estate agents that way," Hicks said. To top of page

Friday, January 21, 2011

Great News for Sellers!

This is some great new for sellers!

By Blake Ellis, staff reporter


NEW YORK (CNNMoney) -- Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.

Previously-owned home sales climbed 12.3% in December to an annual rate of 5.28 million, from 4.70 million in November, according to the National Association of Realtors.

That puts sales at the highest level since the homebuyer tax credit expired in June, said Stuart Hoffman, chief economist at PNC Financial Services Group.

The December rate came in much higher than expected. A consensus of experts surveyed by Briefing.com had forecast an annualized sales rate of 4.8 million. However, sales were down 2.9% from 12 months earlier and fell 4.7% in 2010.

"December was a nice finish to the year, but looking at the bigger picture -- home sales and prices have been scraping along the bottom for the last three years," Hoffman said. "So, while we're not digging a deeper hole -- the housing market is still quite weak, and there are still more homes available on the market than there are likely to be buyers."

The median price of all existing homes sold in December was $168,800, down 1% from a year ago.
Meanwhile, the inventory of homes on the market fell 4.2% in December to 3.56 million units. That's enough inventory to last 8.1 months, and is down from a 9.5-month supply in November.

While that's an improvement, Hoffman said that data doesn't reflect the large number of foreclosures that could soon enter on the market.

"What's hidden behind the curtain are potential foreclosures adding to those inventory levels," he said. "Even as we have jobs growing, inventory is still large and more foreclosures are going to be coming on the market. Prices will go down and it's going to continue to be very much a buyer's market."

That said, Hoffman expects sales to gradually improve -- rising about 4% or 5% -- by the end of 2011, as the employment picture improves.

"I do think there will be more sales in 2011, because job growth will support homebuyers," Hoffman said. "We're getting back to the underlying demand without the homebuyer tax credit, but housing is still not contributing much to the overall economic improvement in the economy."

Monday, December 13, 2010

For Sale By Owner?

This is a great article written by John Adams published in the AJC. This is a tough time to try and be an owner without an agent...


Expert: Selling your own home today a tough sell


In some recent years, about all you had to do to sell your own home was stick a sign in the yard and wait for the offers to pour in. In some areas, sales were so hot that owners expected (and often got) offers of more than asking price. The heat of the market led some to question the need for the marketing expertise of a real estate agent.

Things have changed.

Today's home seller is faced with extremely tough (and in some cases desperate) competition. There are many more homes for sale than buyers to buy them, and the few buyers out there are demanding bargains.
Dozens of new subdivisions litter the metro Atlanta landscape, some owned by lenders anxious to unload, others still being completed.

My advice to anyone considering putting his house on the market now in one word: Don't!
The market is stacked against you. When you have too much supply and not enough demand, the product is destined to decline in value. And even though prices are great and interest rates are remarkably low, people worried about losing their jobs just don't buy houses.

This, too, shall pass. As Americans inexorably continue their migration from the Rust Belt to the Sun Belt, and as Atlanta continues its march to become a major American city, our creation of jobs will resume, and demand for housing in our metro area will increase. Add to that the fact that we aren't building anywhere near enough housing to replace what we are losing to neglect, age and decay, and demand must eventually exceed supply.

In the meantime, the toughest job I see today belongs to the homeowner who feels he must sell but has decided to do it himself.

He mistakenly figures that the huge commission may make the difference between a sale and a lost sale, and he secretly wants all that money for himself because he figures he deserves it (in these tough times).
Meanwhile, the hottest buyers in Atlanta aren't sitting in their hotel rooms poring over the for-sale-by-owner ads. Not by a long shot.

Instead, they are referred to our city's elite brokerage firms, are picked up in limos at the airport and whisked off to a plush office where they view a carefully screened list of homes designed to meet their every need. All of which just happen to be listed for sale by a real estate broker.

Thus, it is no surprise that homes sold without the assistance of a real estate professional dropped to a record low this year, only 11 percent of sales as opposed to 13 percent in 2009. This according to research from the 2010 Profile of Home Buyers & Sellers, published by the National Association of Realtors.

My advice: This is no time to go it alone.

Saturday, December 4, 2010

Title Insurance

Title Insurance: More Important Than Ever

Understanding the tenets of title insurance is especially important considering the turmoil in the real estate industry and the foreclosure market.

Title insurance is intended to protect the insured from improper titling, including defects in foreclosure proceedings, forgery, or impersonation or cases in which no title is legally conveyed. Other defects are partial, such as a neighboring fence or garage encroaching on the insured person’s property.

The title insurance industry recently set down strict guidelines for when and if they will insure a title to a property on which there has been a foreclosure.

The buyer should be equally vigilant, insisting on a 60-year search and paying for an owner’s policy as well as the lender’s policy that the bank will demand.

Source: Washington Post, Harvey S. Jacobs (11/27/2010)

Tuesday, November 23, 2010

11 Reasons to List durning the Holidays

11 Reasons to List During the Holidays

1. People who look for a home during the Holidays are more serious buyers!

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you!

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home! Less demand means less money for you!

4. Houses show better when decorated for the Holidays!

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price!

6. Buyers have more time to look for a home during the Holidays than they do during a working week!

7. Some people must buy before the end of the year for tax reasons!

8. January is traditionally the month for employees to begin new jobs. Since transferees cannot wait until Spring to buy, you must be on the market now to capture that market!

9. You can still be on the market, but you have the option to restrict showings during the six or seven days during the Holidays!

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year!

11. By selling now, you may have an opportunity to be a non-contingent buyer during the Spring, when many more houses are on the market for less money! This will allow you to sell high and buy low!

Friday, November 19, 2010

Americans can’t afford to buy a house.

Credit Score Requirements Stifling Borrowers

Despite record-low interest rates, an increasing number of Americans can’t afford to buy a house.

The nation’s two largest mortgage lenders, Wells Fargo & Co. and Bank of America Corp., have raised the minimum required credit score on FHA-insured loans to 640 from 620. Requiring a 640 credit score excludes about 15 percent of FHA borrowers, FHA commissioner David Stevens said.
Such a high limit will further delay a recovery in the real estate market, says Ron Phipps, president of the National Association of REALTORS®.
This issue arose at the annual conference of the NATIONAL ASSOCIATION OF REALTORS® last week. FHA Commissioner David Stevens challenged banks to return to underwriting basics rather than continue to rely on automated models that kick out applicants based solely on numerical scores. Read the write-up on Stevens' remarks.
Source: Bloomberg, Jody Shenn and John Gittelsohn (11/17/2010)

Saturday, November 13, 2010

Mortgage Rates Continue Record Slide

Mortgage Rates Continue Record Slide

Freddie Mac reports that rates on fixed mortgages again fell to their lowest levels in decades this past week, with the average interest on 15-year loans dipping to 3.57 percent from 3.63 percent a week earlier, and the average interest for 30-year loans sliding to 4.17 percent from 4.24 percent. That is the lowest since 1971.

The impact of the favorable borrowing costs is being muted somewhat, however, by a high rate of joblessness, foreclosures, and tight credit.

Source: Boston Globe (11/12/10)


If you can qualify for a loan, now is the time to buy!  Act fast!

Monday, November 1, 2010

Dekalb County Foreclosure Update

Dekalb County GA is going through some interesting changes that people at risk or foreclosure should be aware of....


DeKalb County, which has more than 14,000 foreclosed properties, is cracking down on absentee owners of such property.


The county launched its foreclosure registry this week as a way to hold property owners more accountable. The registry, which will require a $175 fee, will be online and include owners’ contact information.

Creditors or mortgagees that foreclose on a property have up to 30 days following the foreclosure sale to register the property with the county and become in compliance with all code enforcement rules. Anyone who does not register is subject to a $1,000 fine per day.

Registration forms are available at www.dekalbcountyga.
 gov/foreclosureregistry .

Thursday, October 28, 2010

Check with your lender

Talk with your lender and see if you can qualify for a home loan.  This is the best time to buy in nearly 20 years.  Rates will not be this low forever.


30-Year Mortgage Rates Plumb New Depths
Freddie Mac reports that the average interest on 30-year fixed mortgages slipped to an all-time low, for the third consecutive week, to 4.19 percent.

At the same time, 15-year fixed-rate loans and the five-year adjustable-mortgage rate both also hit record lows. Rates on the former were 3.62 percent, while the latter averaged just 3.47 percent.

Source: The Wall Street Journal, Nathan Becker (10/15/10)