November 16th, 2011
If you listened to the news, you would think that this Buyer’s market will last forever. Well, the real market data show that we may be in the midst of transitioning out of a Buyer’s Market and into a Seller’s Market. A seller’s market is defined as having a supply of homes on the market of less than 6 months. That means, at the rate at which buyers are purchasing homes, it would take LESS THAN 6 Months TO RUN OUT OF HOMES TO SELL. When we break it down by price range, we see that homes less than 100k are at an inventory of less than 6 months. For 100k-200k, we’re right at a balanced market. The ranges 200k-300k, 300k-500k and 500k-750k are fast approaching a balanced market. The under reported fact is that more homes sold every month of 2011 than in 2010…which had the tax incentive.
THIS IS A GREAT TIME FOR SOMEONE WHO WANTS TO SELL!
Let’s take a look at the inventory trend over the past few years. There are currently a third fewer homes on the market today then there was January of 2009. In 2009, sellers were still “testing the market” – seeing what they could get for their home. The higher supply of homes gave buyers the upper hand (The buyer’s market). In 2009 – 2010, it was common to see an overpriced listing. Over the past 2 years, sellers have gotten serious. Sellers who do not need to sell, or are not very motivated, have come off the market. And those homes that were on the market to sell actually sold. All of this has led to the decrease in inventory of homes. (The transition period into a seller’s market has begun.)
Inventory is low, number of sales is up. If you’ve wanted to sell, thinking that it’s not a good time, you may be pleasantly surprised. Let’s meet up and take a look at your home specifically to see how it fits into the market. Let’s “time” the market… BECAUSE…
BUYERS STILL NEED TO BUY
People are relocating; companies are still moving into Atlanta. People are getting married, having babies. Empty nesters are moving closer to town. Atlanta is a vibrant city. Investors are moving into the market. First time home buyers are taking advantage of this time. Move up buyers are taking advantage of these incredibly low rates that increase their buying ability for the next higher priced homes. Looking at the graph below, we see 3Q 2011 number of sales up 27.9% over 3Q of 2010!
THERE’S STILL SMALL WINDOW OF OPPORTUNITY FOR BUYERS
Putting things in perspective, we have to tell the story of last year’s tax credit. It expired in June 2010 so there was a huge decline in sales 3Q and 4Q of 2010 as the “would be” 3Q & 4Q buyer pushed their deadline to meet the tax credit deadline. However, you will notice that both 1Q and 2Q 2011 were up over the same quarters in 2010. The first half of 2011 was a natural market beating the first half of 2010 which was incentivized with tax credits.
WINNING IN THE 2012 MARKET
Sellers will win as long as they continue to price homes fairly and look good. With fewer inventory to compete with, there will come a time that the % of the negotiations off the list price will become less and less. One word of caution, an overpriced house is still an overpriced house that won’t sell. Staging and updating properly will have a greater return on investment than 2009.
Buyers will win as long as they realize that aggressively low offers don’t work. Buyers will need to understand the well priced, pretty homes sell first…and now have more buyers considering making an offer. Buyers must be prepared to act quickly once they find a house they like. So being pre-approved ahead of time is crucial.
With 2012 soon approaching, let’s talk about your real estate goals. As your resource for all things real estate…let’s discuss the best timing for you as we are in this transition period of going from a buyer’s market to a seller’s market.
Give me a call at 404-964-2060
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November 15th, 2011
Interior (In No Particular Order)
1. Reduce the temperature of your water heater to 120 degrees or lower.
2. Check weather stripping around doors and windows, and replace where necessary.
3. Place a draft snake or rolled towel underneath drafty doors.
4. Remove and store window AC units. Air can seep in through sides if left in during winter.
5. Have your fan switch directions so that downward sides of blades are leading. (usually will mean they go clockwise)…this pulls warm air down into room.
6. Install storm doors and windows–seals drafts and reduces airflow by lots!
7. Have heating system inspected by a professional before weather gets too cold. Units run smoothly with periodic maintenance.
8. Insulate attic adequately.
Exterior and lawn
Prepare your lawn. Rake up all your leaves before winter arrives. Apply a sustained-release fertilizer in late fall – it will help the roots survive the cold season and bounce back quickly in the spring.
Drain all hoses and turn off faucets.
Check your gutters. Properly pitched gutters slope between 1/16 inch and 1/8 inch per foot.
Inspect the exterior of your house. Seal entry points around pipes with caulk or foam.
Seal driveway and walkway cracks. For crevices less than a half-inch wide, use acrylic latex concrete repair compound. For larger cracks, apply vinyl concrete patching compound with a trowel.
Empty your lawnmower’s fuel tank and store it for the winter.
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November 15th, 2011
Even if just by a little, 30-Year Fixed Mortgage Rates have risen. Although, the jumbo mortgage rates have dropped significantly.
As you’ll see in the diagram above, the 30-year fixed rates are at 4.25% as of last week. An increase in 0.02%
15-year fixed mortgage rates inched up to 3.50% while the jumbo mortgages (generally for those more than $417,000) fell 5 basis points leaving that rate at 4.76%–a record low!
In the weeks to come, Europe will be the main focus for the financial market as this will drive mortgage rates.
Mortgage rates have not been over 6% since November 2008.The last time mortgage rates were above 6% was Nov. 2008. An average 30-year fixed rate was 6.33%. Therefore, a $200,000 loan then would have had a monthly payment of $1,241.86. But today, the same loan would only be $983.88 a month, a $258 a month difference.
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October 20th, 2011
Buckhead Atlanta: Completion in 2013
October in Atlanta is synonymous with college football, outdoor hikes or mountain trips, gorgeous weather and excitement. This year we have even more to look forward to in Atlanta! The former Streets of Buckhead was bought by a new investor early 2011 and has changed the name to Buckhead Atlanta. Finally, this October he released the new renderings of the project. Construction is to resume this fall with a completion date of 2013. Can we all say “YES!!!” Here’s the new map: www.olivermcmillan.com/buckhead-atlanta
Tour The Beltline With Me (New Parks and Artwork To Enjoy)
Also, The Beltline Project has opened more parks. They’ve been spreading art along the trail. Let me know if you are interested in touring the project. I’m planning a time to take the tours. Check out the website. www.beltline.org
More Good News for October: Significantly Less Homes On The Market
October 2011 will prove to be a strong month in sales. Prices are still down from 2010, but so are the number of homes on the market. We’ve gone from an inventory of 13 months of homes on the market to an inventory of 8 months. Call me at 404-964-2060 to ask me how things are looking in your specific neighborhood. And as always, I hope you enjoy this Fall season!!
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October 19th, 2011
When A Tree Falls From My Yard…Who’s Responsible?
Legal Tips From A Local Attorney
Trees and tree limbs can fall due to a tornado, hurricane, or just old age and bad health.
Homeowner’s insurance policies may cover some damage and tree removal, but there are certain questions that will be asked to determine which homeowner (and which insurance company) is responsible.
Live, healthy tree: Each homeowner is responsible for his/her own damage and cleanup, regardless of where the tree trunk is. No one can predict or prevent a tornado or hurricane. This is a “damage” claim, so the deductible will apply first.
Old, dying, diseased tree: Each homeowner should regularly trim or remove the portion of the tree on his/her property AND should notify the neighbor in writing if an unsafe tree is a potential danger to neighboring properties.
Neighbors do not have the right to go onto other neighbors’ property without permission, even to trim or remove a dangerous tree.
However, giving notice of the unsafe condition will help recover insurance proceeds, possibly even from the neighbors’ insurance company. This is a “liability” claim, so there is no deductible.
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September 20th, 2011
Homeownership: Still The American Dream?
I read an interesting survey conducted by Trulia earlier this September asking views on homeownership. In spite of a sluggish economy, political discord, and loss of values of homes, 70% of respondents said that homeownership is still apart of their dream. This is encouraging news. Not only to me the Realtor or to you the homeowner (meaning there is still demand for your future sale), this is encouraging news to our communities. The survey broke into various age brackets concluding that majority of every generation still believes in homeownership with worthy of achieving. 65% of millennial (ages 18-34); 66% of GenX (ages 35-44); 74% Baby Boomers/Pre-retirement (ages 45-54); and 76% of Baby Boomers/About or Already Retired. 80% of Current homeowners say that would buy again. 59% of current renters aspire to own their own home.
More Than Money
What is also interesting that this same survey was given in January 2011…and 70% then also said homeownership is still apart of his/her dream. Therefore, there has to be more than money that inspires Americans to own their own homes. Homeownership is a sense of accomplishment. Working hard and saving does have tangible rewards. Homeowners understand value. When one owns, he/she cares more. Therefore, we care about our surroundings, neighborhoods (which does include the businesses and environment), and our fellow neighbors. (I had the best experience of neighbors who care. During this January’s ice storm, I got a knock on my door after my neighbor salted my driveway.) Homeownership provides a place of stability for the owner and therefore stability for the community. It is a place of independence and freedom where the family can call the shots on their home and therefore take responsibility for their home. One learns more and grows more. These are the intangible values that make Americans dream for their future. In addition, homeownership is still a great investment.
Homeownership vs. 401k’s, Mutual Funds, and Buying Gold
The survey also stated that 57% of respondents believe that homeownership is still the best long term investment…that’s higher than 401k’s (52%); Mutual Funds (29%); Buying Gold (26%); etc. It has only been in the most recent decade that anyone has taken the point of view the personal homes are short term investments where money can be made in just a couple of years. Before then, most believed that their personal residence is a long term investment (3-5 year + investment) in that 1. a payment will be made whether to a landlord or mortgage company; so why not have the payment work toward your benefit, 2. the trend the over time is that real estate appreciates 3. tax deductions; 4. the exclusion of capital gains tax on gains up to $250k for single and $500k for couple, and more.
So how does this affect you…?
Be encouraged. Majority of the population is committed to preserving the value and dream of homeownership. So let’s keep encouraging responsible homeownership. Homeownership is still a great long term investment. And last, but not least, our communities continue to thrive. Yes, a lot of changes have occurred over the past 3-4 years. But the desire of homeownership is still alive and well.
Questions / Advice
If you have any questions about your home or how to navigate this current market, please call me for a confidential consultation, 404.964.2060.
–Kelly Chancy
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September 20th, 2011
Tax Credited Upgrades
If you need to do some upgrading on your home, and they are green, you can still collect tax credits. They won’t be as much as they were last year, but if that’s ok with you and you need to get the upgrades done anyway…read on to learn what qualifies for up to $500 in tax credits.
- Insulation
- Biomass stoves
- Heating, ventilation, air conditioning
- Metal and asphalt Roofs
- Non-solar water heaters
- Storm windows and doors
- Windows, doors, and skylights
Tax Credits vs. Deductions
- Credits mean dollar-for-dollar reduction in your tax liability. A $500 credit equals $500 less in taxes you have to pay.
- Deductions simply reduce your taxable income.
Additional Limits On Energy Tax Credits:
- With credits you must spend $5000 to get $500 since it only extends to 10% of the cost. Last year it was 30%…yea that stinks but something is better than nothing! $500 is still $500, eh?
- Your lifetime limit is $500. Earning $500 or more in both 2009 and 2010 combined means that’s it for all the categories listed above. For example, if you took $200 in 2009 and 2010, then you’d get up to $300 in 2011 and that’s it.
- In some instances, certain systems cap lower than $500.
- $500 of the maximum for all creditable improvements combined.
The Systems Capped Below $500
New Windows – $200 max (overall)
Approved electric and geothermal heat pumps; central air-conditioning systems; and natural gas, propane, or oil water heaters – $300 max
Advanced main air-circulating fan – $50 max
Qualified natural gas, propane, hot water boiler, or propane – $150 max
All improvements must meet energy-efficient standards of the IRS to qualify. Be sure to check EnergyStar.gov for more information.
Installations Covered By Tax Credits
Usually the only installations covered will be extremely difficult ones or ones required for safety.
See this list of what could qualify:
- HVAC
- Non-solar water heaters
- Biomass stoves
Not Covered:
- Insulation
- Windows, skylights and doors
- Roofs
How To Claim The 2011 Energy Tax Credit
- Determine if the system you’re considering is eligible for the credits. Go to Energy Star’s website for detailed descriptions of what’s covered; then talk to your vendor.
- Save system receipts and manufacturer certifications. You’ll need them if the IRS asks for proof.
This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice, and remember that tax laws may vary by jurisdiction.
This blog post information was derived from an article written by Donna Fuscaldo who has written about alternative energy for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. She is currently renovating her house with an eye toward energy efficiency and green technologies.
Read more: http://www.houselogic.com/articles/how-to-collect-2011-tax-energy-credits/#ixzz1YXbpWdIl
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August 16th, 2011
Jeff and Dana of SR Homes in Lawrenceville, GA discuss tips to care for your roof.
“No Leaks, No Worries”
True, no need to worry. But, an occasional preventative home owner inspection may reveal a “Hey, that doesn’t look right” appearance. Use binoculars or camera with a zoom lens to get a safe look at flashings at vertical intersecting walls to the roof, pipe penetrations and roof mounted vents, fans or satellite dishes. Expansion and contraction due to temperature changes, as well as Ultraviolet deterioration and of course water saturation, will eventually break down these products inviting potential leaks. Many times this can be seen before the leak is visible inside. If detected, contact a professional roofer to make corrections and inspect the remainder of the roof. In addition to this safe inspection from a distance, you are protecting the asphalt shingles. Walking on roof shingles, especially in warm seasons, removes the protective granular surface, decreasing the life of the roof. And stepping on the ridges and valleys will actually split the shingle. Let us know if we may assist.
–Jeff
Keep Your Gutters Free of Debris
If you do not keep gutters clean the water can back up and run into soffit, attic or into house causing rot and mold problems. Gutters help to move water away from your house to keep it from causing damage. If they are clogged with leaves, pine straw, or other debris, there is risk water will collect and can cause damage by backing up and running into the soffit, attic or house causing rot and mold problems. Keeping them clean is a great way to ensure that your house will stay free of water damage.
You can follow these 3 simple steps:
1) Clean your gutters at least twice a year. (Or more, depending on the amount of trees around your house). The best times are after spring pollen and after leaves fall in the fall.
• You will need a ladder, gloves, a garden hose, a broom stick, a trash bag, and a scraper for harder to remove debris
• Remember; do not put your ladder directly onto your gutters while climbing. This can damage them.
2) Rinse your gutters with a garden hose.
• This cleans and reveals leaks in your gutters.
• Use the broom stick to help with debris stuck in a down spout.
3) Inspect the gutters and downspouts.
• Check for any rust, leak, or other type of damage to your system
• Repair or replace any damages sections
–Dana
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August 16th, 2011
Buckhead Former Fixer Upper Sold in 2010
The Upside of This Market
I’ve watched more and more sales this year on “fixer uppers” than I have in the past 2-3 years. All I can say is Yippee! Glad to get these bad boys off the market. Needless to say, these homes are at lower prices. The lower prices give more margins for home buyers to really fix up the house to a standard. Those sales skew the statistics and bring down the average sales price. But when these homes are fixed up and/or updated, the neighborhood improves. If you are looking to make improvements to your own home, consider what appraisers consider. If you want to take advantage of the market and are ready to take on a renovation, call me…I see these deals all the time.
The Key Components Addressed In An Appraisal
The Site: Location, view, topography, lot size, utilities, zoning, external factors, highest and best use, landscaping features…
Design: Quality of construction, finish work, fixed appliances and any defining features
Condition: Age, deterioration, renovations, upgrades, added features (sunroom, deck, more beds/baths, energy efficiencies)
Health & Safety: Structural integrity, code compliance
Size: Above grade and below grade improvements
Neighborhood: Is the property conforming to the neighborhood?
Functional Utility: Is the property functional as built – style and use?
Parking: Garages, Carports, Shops, etc..
Other: Curb appeal, lot size, & conforming to the neighborhood are obvious to the appraiser when they drive down into the neighborhood pull up in front of your home.
When entering your home, they are going to look at the overall design, condition, finish work, upgrades, any defining features, functional utility, square footage, number of rooms and health and safety items.
For the true fixer-uppers, cosmetics improvements with new counter tops, new carpet, and a fresh coat of paint are not enough. Even with cosmetic improvements, the value still comes from the guts…condition of the home (electric, heating, etc.), number of beds/baths, square feet, and then the genuine cosmetic improvements. Regarding updating a property for a future sale, consider what the standard features of your neighborhood and the expectation of the buyers moving into your area. Certainly if you’re improving for your personal enjoyment…that value is priceless!!
For specific questions regarding your home, call me 404.964.2060 or email me.
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July 25th, 2011
Come see this cheerful, lovely, comfy townhome at 1757 Liberty Parkway NW Atlanta, GA 30318 in the Liberty Park Community. Drive through the community up to the townhome and instantly get that good feeling.
1757 Liberty Parkway is an Amazing Deal offered at $119,000 in a community that has consistently sold well since 2007. This just like new 2 bedrooms and 2 bathrooms townhome is perfect for singles, couples, college students, roommates, and/or home office needs.
Minutes to Buckhead, Midtown, Downtown, Smyrna, Atlantic Station and More, this townhome provides an easy commute for everyone…Close to I-75, I-285, and other major roads.
The details throughout the townhome give an impression of classy taste and style with the illusion that you spent a lot to have it. 9 Foot Ceilings on the main level…Hardwoods in the kitchen, living room, and foyer….Tile floors in bathrooms…and Plush carpet in the bedrooms. Large Windows keep all the rooms bright and cheery.
The kitchen is gorgeous with the dark Uba Tuba Granite Counters, Tile backsplash and 36” Maple Cabinets with crown molding. There’s plenty of space to cook and prepare meals on the expansive counters. It’s easy to host guests since the kitchen overlooks into the living room. The all Stainless Steel appliances stay along with the washer/dryer. Crown Molding and Canned Recessed Lighting adds the elegant touch .
Sip on morning coffee or enjoy an after hours beverage on the large deck. Tucked in the back of the community, this townhome offers privacy in a vibrant community. Or be seen by your neighbors sitting on the front balcony. And there is a little yard and patio for play and pets.
Liberty Park Community has a guard house, 24 hours security gate access, and lots of street lights. This townhome is wired for your personal security alarm system. The HOA is strong. The community has a pool, cabana, and grill area.
Have items to store…have no fear. The closets are large. And there’s plenty of space in the garage and in the attic.
Move in Ready and Well Maintained- Living at 1757 Liberty Parkway will keep a smile on your face.
Tags: Atlantic Station, Buckhead, Midtown, Townhomes For Sale
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