While waiting for a client to arrive at the office yesterday another agent asked what I thought about the latest statistics released by the National Association of REALTORS. I asked if he was referring to the across the board 28% downturn in sold properties from June to July that was announced earlier this week? That was exactly what he was talking about. I told him that I had just written an article about how the numbers from NAR were totally skewed as far as the Northeast Atlanta Real Estate market is concerned.

The more I thought about the statistics that were compiled for that last blog article the more I realized that I left out a very important set of statistics…The Year-To-Date sales figures for both years. So here are the numbers:

The Year-Over-Year numbers above represent a 6.12% increase in closed transactions in Northeast Atlanta. WOW…In every area the number of closed properties is up Year-Over-Year for the same time period. OK NAR where were these type numbers reported? How do these numbers tie into the 28% downturn in real estate sales? One again folks…Real Estate is Local! To some areas of the nation that 28% number may very well be good news…Just not in the Northeast Atlanta market.

Now that you have the complete statistics, what do you think?

Recently you have not been able to turn on a news program without hearing that according to the National Association of REALTORS, the real estate market is down 28%. Taking this into account I thought it would be a good idea to take a look at exactly what has happened month over month in the Northeast Atlanta Real Estate Market.

First let’s look at the sales totals for June and July of 2010:

As you can plainly see, closed sales in these areas are down. However it is not by that 28% that the news media is referring to but 24.83%.

Next I decided to look at some fairly broad price parameters to see if there was a particular price point where the downturn was coming from:

What these statistics show is that there was a slowdown of 23.15% in the under $200,000 price point homes, a slowdown of 27.66% on the $200,000 to $400,000 and the least percentage slowdown of 21.99% was in the over $400,000 price point.

How would you interpret these statistics? Is there a lesson hidden here? Let’s look at some facts. The Tax Credit expired in April. At that point buyers had to be under contract by April 30, 2010 and close on the property by June 30, 2010. The closing date has been extended until September 30, 2010, but it only makes sense that there was a big push to get properties closed before the end of June so that First Time Buyers and Move-Up Buyers could take advantage of the Tax Credits available to them. Wouldn’t his push artificially inflate June data while leaving July data suffering by comparison? I think that may well be the case. If we do a comparison of adding June and July 2010 sold numbers together and then comparing those numbers to the same time period from 2009 then we find that there is only an 11.35% decline in sold properties in the Northeast Atlanta Real Estate Market. While this may not be the best news in the world it sure beats the 28% downturn being reported.

What all of this means is that Real Estate is very local. In order to have the most up-to-date information about your specific area requires a REALTOR dedicated to doing the research and staying on top of the market.

Would you like to know the specifics regarding what is happening in your Northeast Atlanta community? Just let me know and I’ll formulate an overview for you.

Many times I am asked when I think we will be coming out of this down real estate market. I think we are there. Will we be showing a rapid recovery? I don’t think so. Will we be making a fairly constant recovery? The Atlanta Real Estate market has a reputation for being slow and steady and that is what is anticipated with this recovery. Let’s take a look at how the Second Quarter of 2010 faired vs the First Quarter.

Forsyth County Summary

The second Quarter of 2010 in Forsyth County shows substantial growth. 990 properties went Under Contract and there were 724 closings. Compared to the First Quarter of 2010 this represents an increase of 299 properties that closed or an increase of 70.3%.

North Fulton County Summary

The second Quarter of 2010 in North Fulton County was active. 1,042 properties went Under Contract and there were 776 Closings. Compared to the First Quarter of 2010 this represents an increase of 301 properties that closed or an increase of 63.3%

Gwinnett County Summary

The Second Quarter of 2010 in Gwinnett County was robust. 3,377 properties went Under Contract and there were 2,252 Closings. Compared to the First Quarter of 2010 this represents an increase of 740 properties that closed or an increase of 48.9%.

Looking Forward

As we are into the Third Quarter, it appears that the Northeast Atlanta Real Estate Market will continue to make progress towards recovery. According to the July Case Schiller Report, which is reporting May 2010 data, home prices increased 2.13% vs the previous month in the Atlanta Market. This is good news for sellers and provides buyers with the warning that it is time to get off the fence.

Looking at the data it is pretty safe to say that we are bouncing off the bottom of this market. If you know someone looking to buy a home please let me know. If you know someone that desires to sell their home, I will be happy to meet with them and go over one of the most aggressive home marketing plans in the Region.

On a closing note, School has started back…Watch Out For The Kids!

Are you tired of looking at property online only to find out that it is already under contract or it sold and closed several months ago? I know that I dislike giving the bad news almost as much as customers dislike hearing it. What if you didn’t have to rely on outdated information from general internet sources?  What if you could search the MLS in the same manner that an agent can? Are you starting to see an advantage for yourself?

In an effort to keep my clients as informed as possible I have just begun a subscription to what appears to be the most up to date, real time, accurate information for real estate buyers and sellers that the Atlanta Real Estate market has experienced. You will be able to search not only active listings but you can also access sales information. The system updates property information every 30 minutes.

Atlanta Real Estate Information for Buyers

This system allows you, as my preferred clients, to have an account that allows you to search the listing service in the same way that I do. You can easily change your criteria and we can openly communicate, almost as if we were using instant messaging, regarding which properties interest you and which one you don’t want to waste your time on.

One nice thing about the system is that you receive an email every morning; it generally arrives in your inbox shortly after midnight, which gets you current with new listings and price changes for properties that meet your criteria.

Atlanta Real Estate Information for Sellers

Sellers will receive an email every morning also. The email for sellers includes alerts for new properties coming onto the market, price changes for competing properties along with activity for the your listing, including how many potential buyers have your home in their criteria. With this type data we can customize our marketing efforts. We can also generate automated Market Analysis for you.

How to Obtain an Atlanta MLS Account

For my current clients I will be contacting you to get your accounts activated. Don’t feel left out if we are not working together yet. Just contact me via email or phone and I will get you set up so that you can receive the information also.

Buying or selling real estate is a journey. Why not travel with as much information as possible?

RE/MAX Regional Services, who services Georgia, Kentucky, Tennessee, Southern Ohio and Southeastern Michigan, recently presented Patrick Finnick of RE/MAX Center in Suwanee, GA their prestigious Broker Owner of the Year Award for 2009.

The momentum did not stop, even as the New Year came in. Per Finnick, “Homes from every price range have been selling rapidly and, the first quarter has been really strong for us. Not just with first-time buyers taking advantage of the tax credit or with homeowners who are behind on their mortgages and having had to “short-sell” their homes but with homes across the board, even homes priced into seven figures.”

He continues, “RE/MAX Center has strongly encouraged our associates to become experts in the various property fields we specialize in, from becoming certified “short-sale” experts to help people sell their home instead of being foreclosed on, to helping buyers and sellers at the top end of the market move up the property ladder. I am so proud of our achievements so far this year. If the rest of 2010 is as productive for us as the first quarter has been then this is going to be one of our strongest ever years.”

Through Pat’s positive attitude and by his leadership, the atmosphere at RE/MAX Center is so upbeat that it is difficult to imagine not being successful in this environment. He has instilled in the agents a team mentality where everyone is willing to help their fellow agents succeed and constantly reminds the agents that they are business owners and should treat their real estate practice accordingly.

Congratulations Pat, Ya’ll Done Good!

As a REALTOR community we have been taught for years that it is of utmost importance for us to have a Marketing Plan for Home Sellers. This plan details the services that we offer in the marketing of a home. As I see it this addresses exactly 50% of the market. It only addresses the sellers and in each transaction there is also a buyer. For that reason I have elected to publish my Atlanta Home Buyer Services Plan.

Atlanta Home Buyer Services Plan

•    Initial Counseling Session – In a personal meeting at my office we will discuss your needs, wants and desires and develop a strategy personalized for you.
•    Buyer Agency – We will discuss the Exclusive Buyer Brokerage Agreement along with its benefits and what Georgia Law requires.
•    Technology – We will review the various technologies and media that we will use to identify properties that meet your criteria
•    Mortgage Prequalification – We will meet with a loan officer to obtain a prequalification for you. This may be accomplished either in person or by phone. We will add the information from the loan officer to your criteria based on the prequalification.
•    Showing Procedure – With the vast amount of information that we will be reviewing, I want you to be knowledgeable during the property preview process.
•    Full Time REALTOR – As a full time REALTOR it will be easy for me to schedule time for you and coordinate around your schedule.
•    Property Showings – You will want to personally view the properties that meet the criteria that we established. Scheduling these showings so that we make the best use of our time benefits all parties concerned.
•    Property Evaluation – We will take an in depth look at a Market Analysis for the property that you select. We will discuss the positive and negative features of the property and how they may affect the future value of the home.
•    Property Disclosure – Together we will review the Seller’s Property Disclosure Statement. This document is prepared by the sellers and is their way of providing you with a written summary of the condition of the home along with their commitment of the various fixtures that will remain with the home.
•    Prepare Your Offer – We will discuss and identify the terms and conditions in the offer that represent your needs and desires. I will protect you in the contract via contingencies that are designed to protect you.
•    Negotiation – This is the fun part for me. I get to assist you with obtaining your goals while doing what I really enjoy…negotiating.
•    Keep You Informed – From the time we have a binding agreement and until the closing there are a multitude of details that are getting done. You will be kept totally informed as to how things are progressing. We will err on the side of over communication.
•    Inspection – Together we will review the home inspectors report. Since there has never been a perfect home built, we will decide which items you would like for the seller to repair prior to you closing on the home. I will prepare an amendment to the contract that will address these issues.
•    Walk Through – Prior to closing, together we will visit the home again and walk through it, making certain that any requested repairs have been performed while examining the property one last time.
•    Closing – I will attend your closing and handle the coordination of all the little details that are needed in order to insure a smooth closing.
•    Service After The Closing – Keeping you informed of various real estate related topics along with market conditions and trends will be my pleasure. You will receive a monthly newsletter that will help keep you up to date, and who knows there may even be a home maintenance tip or 2 included.

This is my commitment to you as a buyer in the Greater Atlanta Real Estate Market. It would be my pleasure to schedule your initial counseling session. Feel free to contact me by phone or email. I am here to assist you.

With the expiration of the home buyer tax credit, some are worried that the real estate market will cave in. I don’t think this is the case. My article of April 20, 2010 detailing the First Quarter 2010 Atlanta Real Estate Market shows that compared to the same time period in 2009, the Atlanta Market is improving. As fact would have it new construction is actually rebounding as well.

When 100% financing options went away(except for VA Financing) what happened… the sun still came up the next morning, the market still did business and yes there remained a need for qualified REALTORS to assist buyers and sellers with their real estate needs. Look what happened when the “Cash for Clunkers” program expired…automobile sales took off like a rocket shot and the manufacturers began looking toward profitability.

Let’s Look at the Facts

The First Time Buyer Tax Credit was put into place to help stimulate the national real estate market in 2008. Real estate had just been through one of the most severe downturns in history. The tax credit was continued through 2009 and in November of 2009 an additional category was included that would benefit current homeowners (in certain circumstances) with a tax credit also. When Congress extended the first time buyer tax credit and included the current owner category in November 2009, they made it clear that the program was not going to be extended again. This is not to say that there will never be another program like this, but at midnight on April 30, 2010 this program is gone.

Alternatives

While there are alternatives that are not tax credits, they do assist First Time Buyers with the purchase of a home. There are down payment assistance and grant programs from the various counties as well as the State of Georgia. For information on these programs please get in touch with me and I will assist you.

Amazing Deals Exist

Even though the Atlanta Real Estate Market is recovering, amazing deals still exist. Short Sale opportunities as well as Foreclosure and HUD properties are fairly prevalent in most areas and represent an excellent opportunity for buyers and savvy investors to snatch up a steal of a deal on a home. Do you fit into one of these categories? Just let me know and we can start locating your dream home immediately.

This article is being published in an attempt to help put into layman’s terms some of the verbiage in the directives associated with the Home Affordable Foreclosure Alternatives Program. I hope it helps.

Possibly one of the least successful programs the federal government has ever instituted is the Home Affordable Modification Program, known to some as HAMP. This program along with the Home Affordable Foreclosure Alternatives makes up the current Making Home Affordable initiative from the government. The purpose of HAMP was to provide an avenue for homeowners to refinance their mortgage to make the monthly payments more affordable. It seems as though the lenders tightened their lending practices just about the same time that the HAMP program was launched. Recent news reports have stated that as few as 5% of eligible home loans have received a permanent modification. The latest report of the HAMP Program from March 2010 shows a total of 230,801 permanent modifications have been done since the program’s inception in early 2009. At this rate it will take about 25 years for eligible loans to get modified. The requirements for a HAMP loan modification are as follows:

•    Homeowner desires to keep their home
•    The mortgage loan must be for the homeowner’s primary residence.
•    The mortgage must have been originated prior to January 1, 2009.
•    The amount of the loan should be $729,750 or less
•    If the account is not in default, the homeowner must be able to demonstrate imminent danger of default, which can include providing proof of a financial hardship, job loss, etc.
•    The payment on the first mortgage (second liens do not qualify for the program) must be more than 31% of the homeowner’s gross income. This includes principal, interest, insurance, taxes, and HOA fees. The gross income includes all borrowers, if more than one person signed the note.

The reason for starting this article with HAMP information and requirements is due to fact that in order to be eligible for the HAFA Program, a seller must first be HAMP eligible. The HAFA Program went into effect on April 5, 2010 and is due to expire on December 31, 2012. Where HAMP is designed for homeowners who desire to remain in their home HAFA is for homeowners who, due to the declining market and current economic conditions, desire to “Short Sale” their home or provide the lender with a “Deed in Lieu of Foreclosure”. HAFA is not for FHA, VA, Fannie Mae or Freddie Mac backed loans. To find out if your loan is eligible you must contact your servicer. HAFA requirements state that the homeowner:

•    Must be HAMP Eligible
•    The home must be the Primary Residence
•    The loan must have been originated before 01/01/2009
•    The loan must be in default or be reasonably suspect of going into default
•    The loan amount must be under $729,750
•    The monthly payment must exceed 31% of the homeowners Gross Income

HAFA vs. Traditional Short Sale

In a traditional Short Sale transaction everything is a guess regarding price and terms. The seller, homeowner, may agree to specific terms and conditions only to have the lender reject the transaction. With a non HAFA transaction the property would be marketed, then an offer received and then the waiting game, some of which we have seen go longer than 6 months, begins. See the timeline below for more information on HAFA timelines. With a HAFA transaction most of the waiting time is spent on the front end of the sales process prior to an offer being presented.

With a HAFA transaction the price, the closing costs contributions by the seller along with other variables are established by the lender. The lender is then bound by these terms for 120 days. Buyers will know the terms of the purchase from the start rather than having to play a wait and see game. This fact alone should help shorten the timeline for prospective buyers and hopefully eliminate those horror stories we have heard about regarding the amount of time involved in getting a short sale closed.

How to Get Started With HAFA

Even if you have not applied for or been contacted by your lender regarding a loan modification, to begin the HAFA process you start with the Request for Modification and Affidavit. On this form you will fill in the basic information paying special attention to the “Hardship Affidavit” section of the form. You should attach documentation showing that the monthly payment on your home exceeds 31% of your gross monthly income.

Benefits of HAFA for Sellers

HAFA provides some very special and important benefits compared to the traditional short sale for the homeowner who is facing foreclosure.

•    Seller is released of all liens
•    Shortened timeline after the receipt of a contract
•    Seller gets a $3,000 relocation allowance
•    The lender is bound by the established price and terms for 120 days

Disadvantages of HAFA for Sellers

While the upside seems to outweigh the downside of a HAFA transaction it would be inappropriate not to disclose the disadvantages also. As we see it the disadvantages for the Seller in a HAFA transaction are as follows:

•    Must be an arm’s length transaction
•    The Seller may have to pay taxes on the debt forgiven and the relocation allowance
•    Reporting to the major credit bureaus that the mortgage was settled for less that the full payment
•    You must have clear title to the property. Second lien holders must agree to a substantial short payoff. If a second position does not agree then all of this work has been for nothing
•    If you sign the standard Short Sale Agreement as it is written you are agreeing that if the home does not sale in the 120 day time period, you are agreeing to a Deed-in-Lieu of Foreclosure

Seller Responsibilities

In a HAFA transaction the homeowner is responsible for several items regarding the home:

•    All property maintenance both interior and exterior
•    All Utilities
•    Any Assessments
•    Association Dues
•    Maintain Insurance on the property

HAFA Timelines

In any real estate transaction timelines are an important part of the documentation required to achieve a successful closing. Timelines in HAFA are no different. Let’s look at the timelines in a HAFA transaction:

•    Lender responds to Request for Modification and Affidavit….No Specific Timeline
•    Seller and Broker respond to Short Sale Agreement(SSA)……14 Calendar Days
•    Seller responds to Alternative Request for Approval of Short Sale….14 Calendar Days
•    Request to Approve a Short Sale(RASS) 3 Business Days from receiving an offer
•    Lender response to Request to Approve a Short Sale………….10 Business Days

Important Certifications from the Seller

There are several very important items that as the seller you must certify. Under penalty of perjury you certify that:

1.    This is an arm’s length transaction, between the parties who are unrelated and unaffiliated by family, marriage or commercial enterprise
2.    There are no agreements or understandings between you and the buyer that you will remain in the property as a tenant or later obtain title or ownership of the property
3.    Neither you nor the buyer will receive any funds or commissions from the sale of the property
4.    There are no agreements or offers relating to the sale or subsequent sale of the property that have not been disclosed to the Servicer

Is That All

My intention is to present as complete an overview as possible and put it in layman’s terms for everyone to understand. I feel certain that with the HAFA Program having just launched that there will be changes as the program evolves. I will attempt to keep you posted as I become aware of changes to this program.

If you are in a situation where it may be necessary for you to short sale your home and would like free no obligation counseling on your options, feel free to give me a call or contact me by email. I will do everything I can to assist you through this difficult time.

So what is happening with the real estate market in the northeast quadrant of Atlanta? Rather than just stating the same old clichés, I thought it might be beneficial to look at the sales numbers in a year verses year format and make the comparison in the number of homes sold. The three (3) areas that will be examined are Forsyth County, Fulton County and Gwinnett County. To get a true picture of what has occurred over the last three (3) years, both Single Family Residences (Residential Detached) and Condo/Townhome (Residential Attached) sales have been included.

Forsyth County

Fulton County

Gwinnett County

Real Estate is very local and each market is different. What is happening in Phoenix, San Diego, Miami or any other area of the country is specific to that local market. While the numbers bear out that the northeast Atlanta market has declined since 2007, it’s not as bad as the news media might want us to believe. As a matter of fact look at the total sales numbers for Gwinnett County in 2008 vs2009. That certainly has not been reported on the news.

Short Sales and Foreclosures have had a definite negative impact on values and it is anticipated that they will continue this trend until the market stabilizes. While I think everyone knows what a foreclosure is, the term short sale may not be as well known. For those who would like a little additional reading here is a link to a series of articles that define what a short sale is and how the process works. Atlanta Short Sale and Foreclosure Information

Many times I am asked when do I think the market will come back. I don’t know exactly but I am starting to see what I believe to be a bounce off the bottom. If I am correct we will begin to see sales prices starting to rise. In the mean time, while prices are low and interest rates are down now is an excellent time to buy or invest in the real estate market. If you know anyone looking to buy or sell let me know. It’s not too late to take advantage of the $8,000 first time buyer tax credit or the $6,500 tax credit for existing home owners. If you are not aware of the requirements to take advantage of these programs give me a call or shoot me an email.

Maintenace Free Step Less Ranch

Construction is underway on the New Courtyard Collection at The Villas of Johns Creek. Each of these 4 new open floor plans center around a private courtyard which is an extension of the indoor space. Each of these properties allow for you to customize your courtyard with an optional fire pit, water feature or plant trellis.

These new courtyard plans start at $239,900 and are ready for you to personalize with your interior paint colors and design options. Construction is scheduled for completion in early December 2009 so you can be in your new maintenance free, step less Ranch Condo for the holidays.

For additional information on the Courtyard Collection at The Villas of Johns Creek contact me and we will schedule a time for you to see these remarkable homes. You can also view all Homes Available in The Villas of Johns Creek online.