How would you like to receive a letter from your homeowner’s association that starts out like this? During a recent inspection it was noted that you were in violation of the Covenants and Architectural Guidelines for the following reason:

General Maintenance – Paint Metal Roof: "Each homeowner shall keep and maintain each Lot and Structure owner by him, as well as all landscaping located thereon, in good condition and repair…"

Specifically please paint the metal roof on the front of the house to match the shutters.

We will recheck your property in approximately twenty (20) days from the date of this letter. Please note that violations that are not corrected by that date or continue to be repeat violations will incur a fine of $25 per day. The association has the right of abatement (the right to correct the violation at your expense) and the right to membership suspension. Please refer to the Covenants.

In my subdivision many of the bay windows and Queen Anne returns are covered with copper. Now if the copper roof is to be painted the same color as the shutters, then just on my cul-de-sac of 7 homes there would be grey, taupe, reddish orange, blue and black painted copper. I think it is easy to visualize just how silly that would look. Obviously the individual that wrote this letter was not very well versed about copper roofs and their maintenance. For those who don’t know as it ages, copper naturally goes through several stages. Rather than educating themselves first, it is sad that the homeowner’s association just sent out this letter for no good reason.

After several phone conversations and countless hours of research obtaining documentation about copper roofs along with emailing these documents to the homeowner’s association the violation was dropped. The resident was guilty until proven innocent. Seems a bit backwards from the way we have all been brought up don’t you think? Below you will see a picture of a monument that started out as bright shiny cooper and been going through the aging process for some time. I think we can all agree that it would be a shame to paint this structure.

So what exactly does the FHA do? The FHA provides mortgage insurance on loans made by FHA approved lenders throughout the United States. Since it inception in 1934 FHA has insured more that 34 million loans. Generally FHA loans are easier for buyers to qualify for as they do not have the more strict underwriting guidelines of conventional loans.

We have known that it was coming, we just didn’t know how high the limits would be raised. Well we got the answer today. The Federal Housing Administration, FHA, has increased the loan limits on a FHA insured home loan in Metro Atlanta to $346,250 up from $252,890, an increase of 27%.

This action by FHA should help spur the housing industry in the Atlanta market. Any home priced below $346,250 just became easier for more buyers to qualify for.

The Atlanta Mortgage Market

The mortgage market in Atlanta, along with most other markets, has been extremely volatile over the last few days. Lenders have been publishing rate sheets then retracting them, adjusting interest rates up then down and even preventing brokers from locking loans for borrowers. Typically loan officers get rate sheets from the lenders mid morning each weekday. Since Tuesday rate sheets along with revisions have been coming several times each day.  Hopefully some of the volatility has eased from the market.

Fed Cuts Short Term Rates

When the Fed announced on Tuesday that they were cutting the Federal Funds Rate by .75 percentage points the phones began ringing off the hook. What must be understood is that this rate cut is for the interest rates that banks charge to each other. This is for "Short Term" loans and a mortgage is considered a long term loan.

Is It Time To Refinance

In the mortgage business one of the most often asked questions is, Is it time for me to refinance? The short answer to this question is maybe. The better question would be, Is it time to meet with a qualified loan officer to discuss my options? The easy answer to that question is YES. Several documents that you need to have with you so that you can obtain the best advise are your most recent statement from your mortgage lender and your warranty deed.
If you are currently in an Adjustable Rate Mortgage (ARM) also provide the loan officer with the information about when you adjustment periods are along with the amount of the adjustment.

A Big Win For The Little Guys

Much of the recent news regarding foreclosures has centered around how the borrowers entered into Adjustable Rate Mortgages and when they began adjusting upwards the borrowers just could not afford them anymore. With the current rates being in the 5.375% range for a 30 year fixed rate mortgage, it makes perfect sense for any borrower in an ARM to seriously consider refinancing now.

Now more than ever it is increasingly important for Atlanta consumers to be represented by an Atlanta Real Estate Expert. The landscape of the real estate market in Atlanta is rapidly changing and having an agent that is educated and understands the nature of the market can represent substantial savings both financially and emotionally.

Georgia Real Estate Contracts Change

The Georgia Association of REALTORS has just released the 2008 version of the forms that Georgia  REALTORS utilize. And yes there are changes. The major changes came on the Purchase and Sale Agreement, better known as the contract. The legal description can now be attached as an exhibit which would apply to a meets and bounds description or the full legal description for platted subdivisions can be incorporated into the contract. Now for the biggy, the method of payment shall be all cash at closing! Does this mean that you can not finance a home in Georgia anymore, of course not. To protect a buyer with a financing contingency an agent must complete additional documents. While time frames have always been important, knowing how to use them to protect a client especially with the financing and appraisal contingencies now puts them at a premium. The inspection portion of the contract is now the "Due Diligence Period" and also includes the statement that it is the duty of the buyer to inspect the neighborhood.

The News Media Failed

The uncertainty in the mortgage market has gotten most of the attention recently from the news media. One thing the news has failed to cover is the fantastic opportunities available to buyers in this market. Whether new construction or resale it doesn’t matter, it’s a buyers market in Atlanta and consumers need an agent that understands how to do business in this enviornment.

When thinking of the term advocate and applying it to the real estate market you would think that it would probably have something to do with being a consumer advocate. I would tend to think so also. There can be two different types of real estate advocates. There would be the buyer’s advocate whose sole intent is to protect the buyer’s interest and a seller’s advocate whose purpose would be to protect the seller. Let’s examine each type.

Purchasing a home is typically the most expensive purchase any of us will ever make. Not only should a buyer enlist the services of a qualified Atlanta Buyer’s Agent but also an individual that would be considered an Atlanta Real Estate Advocate. To be a good buyer’s advocate an agent should have a complete understanding of not only the legal requirements in representing a buyer as called for by Georgia law but also have a good working knowledge of construction techniques, current mortgage information, school information (both public and private) and most of all put the buyer’s interest above all others. For Atlanta First Time Buyers make certain that you get a complete understanding of the process of buying a home. Attending a buyer seminar or workshop is an excellent way to increase you knowledge and after all, knowledge is power especially in a real estate transaction.

Selling a home is also an enormous financial transaction. Rarely would any of us be involved in transactions for hundreds of thousands of dollars except with our homes. Doesn’t it make sense to put your trust someone who understands what is required in Selling a Home in Atlanta. The days of just putting a sign in the yard and answering the calls are gone. Having a solid marketing plan detailing the steps to be taken to properly market a home is the foundation for a successful transaction. To get a home sold in today’s market it is of utmost importance to have the home on multiple websites in order to obtain maximum exposure. One way to accomplish this is through an Internet Data Exchange (IDX) that makes your home available on every agent and broker website in the entire Atlanta Market and really helps when a buyer is searching for Atlanta Homes for Sale.

Having experience in assisting both buyers and sellers has helped me be able to understand the needs and wants of both buyers and sellers. Understanding what each wants pays off when a contract is being negotiated.

The nice part of all of this is that working with a real estate expert in Atlanta who will protect your interest doesn’t cost any more than working with a less experienced agent who may not be as qualified. It is impossible for one agent to be able to cover the entire Greater Atlanta Market effectively. Feel free to contact me for assistance with finding qualified REALTORS throughout Metro Atlanta to help with your real estate needs.

What The Experts Say

Long recognized as one of the industry leaders in the following and reporting of home prices in the United States, Standard & Poors Case-Schiller Home Price Index sheds an interesting light on the Atlanta Real Estate market. The Index, while showing statistics back to January of 1987, has each of it’s 20 metropolitan areas on a level playing field in January of 2000 with an index rating of 100.

As of January 2007 the Atlanta index was at 133.45 and with the October report, which was released on December 26, 2007, the Atlanta index was 133.79. While the increase is small, the indication is that real estate in Atlanta continues increasing in value.

The Office of Federal Housing Enterprise Oversight latest quarterly report also shows some positive results for the Atlanta Real Estate Market. This report shows a 2.61% increase in value over the last year, a decrease of 0.56% for the quarter and a 20.18% increase in value over the last 5 years.

Why Is Atlanta Better Off?

Some will ask why is this the situation in Atlanta while other metropolitan markets have suffered so greatly? Just as an appraisal is a reflection of the value of a home in a specific location, values for an area are based on that area not what is happening in another area of the country. I guess you would have to base Atlanta’s ability to maintain even minimal growth on the fact that the region’s housing prices are fueled by relocation and job growth rather than speculative buying as happened in some areas of the  country.

Additional databases that lend information to the overall real estate landscape in Atlanta is from our local listing services. One of the important statistics currently shows that the inventory in the Greater Atlanta Market is shrinking. As inventory is reduced, pricing should continue to increase.

What Does It All Mean?

So what does all of this mean? Simply stated, prices will probably not be going down in the Atlanta Real Estate Market. Couple this with the fact that interest rates are very favorable right now and you have a great time to buy a home in Atlanta.

Recently I attended a meeting where part of the discussion was about a study done by The National Association of REALTORS®. This particular study is titled "2007 Profile of Home Buyers and Sellers" and contains one set of statistics that quite frankly is scary. I hate to think how much money buyers have lost nationally just by not implementing one simple strategy when purchasing new construction.

For years now consumers have heard that it is in their best interest to use the services of a REALTOR® when purchasing a home. This still remains the best practice for a buyer to follow. According to the study 88% of all buyers purchasing pre-owned homes utilized the services of a REALTOR®. Here is where the scary part comes in. 50% of all buyers purchasing new homes were not represented by an agent. That’s right 50% of new home buyers bought their home utilizing the services of the agent that represented the builder. WOW!

Perhaps the REALTOR® community has done better job promoting the attributes of our services for buyers purchasing resale properties as opposed to new construction. Personally I don’t believe that this is the case. I think buyers perceive that the services of a REALTOR® are needed more for the purchase of a resale home. After all, there are the inspections to deal with, coordinating the moves and of course warranty concerns. Well guess what folks; you have just as many concerns on new construction. You still need to have an inspection, you still need to coordinate the move, you still have warranty items that arise within the first year of ownership and the list goes on.

Let’s examine some of the reasons why a buyer would want representation in purchasing new construction:

• Making certain that you, as the buyer, obtain the right home, at the right terms and conditions is the goal of your REALTOR®

• Not having representation to provide relevant sales data before making an offer, including how much the builders have been contributing to closing costs and handling the negotiations for the entire transaction can be expensive for a buyer

• The buyer’s agent does not cost the buyer anything, the seller pays the commission. So the thought that you can save money by not utilizing the service of a buyer’s agent may in turn cost you money.

• Understanding the contract and it’s time frames so the buyers interests are protected

• Handling the inspections and preparing any amendments to remove the inspection contingencies

• An educated buyers agent in Atlanta can compare relative data from various subdivisions and neighborhoods to provide buyers with the best comparisons to use in their decision making process, including detailed school information.

By law in the State of Georgia a buyer is entitled to representation. The law is called the Brokerage Relations in Real Estate Transactions Act. Georgia was one of the first states to enact legislation to protect consumers in real estate transactions. As the buyer of a new home in the Atlanta Real Estate Market, make certain that you are properly represented and that you have all the comparable data that you are entitled to so that you can make a truly informed decision. After all knowledge is power and you want to deal from a position of strength.

Mack Perry is an Accredited Buyers Representative, ABR, and represents buyers of both new construction and resale properties in the Atlanta Real Estate Market. For a confidential meeting to discuss your real estate needs and the exact criteria for your next homecontact Mack today.

At the end of October the was an article published in a San Diego Real Estate Blog about Bank of America doing away with their wholesale mortgage division. The article quoted officials at Bank of America saying that they would be concentrating on direct-to-consumer lending. The article went on to state that Bank of America had introduced it’s no fee mortgage program which would eliminate several hundred to a few thousand dollars in costs associated with closing a home loan.

At the time it was written, I stated that I have seen many instances in which a mortgage broker was able to offer  better terms to a buyer than a Bank of America branch office. Guess what, this holds true today. Yesterday afternoon I went into a local Bank of America branch and saw on their bulletin board that they were offering 5.5% 30 year fixed rate mortgages. Wonderful, I thought. Here comes the kicker, the buyer had to pay 1.835 points to get the loan. Now what would that equate to on an average home? Let’s assume that the sale price of the home is $250,000 and the buyer is putting 20% down, that would leave a loan amount of $200,000. Now with 1.835 points (or 1.835%) the buyer would be charged $3,670.

A 5.5% interest rate on a 30 year fixed rate mortgage can be obtained through a morgage broker with out having to pay points. So the question is, why not utilize the services of a mortgage broker who shops various lenders every day in order to provide clients with the best possible terms available in the market.

WOW…5.5% interest rate on 30 years fixed mortgages in Atlanta. Two different investors each announced 5.5% interest rates  today. Of course we don’t know how long they will last. So if you are thinking of buying a home in the Greater Atlanta area, now is the time to act. Take advantage of this low rate and save yourself a lot of money over the term of your loan.

With interest rates this low now could be an excellent time to refinance those adjustable rate mortgages, or as we have come to know them, ARM’s. If your ARM is scheduled to recast within the next six months or so, do yourself a favor and get in touch with myself at 770-318-2572 or my partner Judy Archer at 770-495-3607.

Again, we have no idea how long these rates will last, so call us now to see if it is possible for you to take advantage of this 5.5% 30 year fixed rate mortgage.

These rates are subject to change and are for qualified applicants. Call today to see if you qualify.

Have we reached the time in the real estate when the rich get richer and the poor get poorer? For the larger builders who have the capital to invest in websites, marketing departments and IT directors this is probably true. What about the smaller and shall we say the more technology challenged builders? I know several custom builders, who shall remain nameless, who not only do not have websites, but also have had some difficulty with adapting to email. Technology, from the digital standpoint, just is not their strong suit. Does this mean they build a less than adequate home? Of course not, they build some of the best homes in the Atlanta Market. Does it mean they are technology challenged? You bet it does. Cell phones and Nextel are about the extent of technology in their business. They know how to include technology in the homes they build because they have been educated about it by the home builder association and by some of their more proactive vendors. What it does mean is that their homes may not be getting as much exposure to potential buyers as some of the other builders homes.

So how does a technology challenged builder compete in today’s marketplace? The first thing that has to happen is for the builder to admit to the shortcoming. After realizing what is needed the builder can take one of two approaches. The first approach may be to get a website and jump into the internet and web2.0 with both feet. We have already established that some of these builders have had difficulty in adapting to email, so this first option may not be the best solution. The next option would be for the builder to align with an Atlanta Real Estate Agent who has adapted well to the internet, email and web2.0. Someone who can utilize the social media avenues in conjunction with a well functioning website to market and obtain maximum exposure and interest for the builders properties.

It has been accepted over the years that marketing a individual resale home, by itself, is considerably more challenging than marketing a group of new homes in a subdivision with multiple choices of elevations and floorplans. A REALTOR® who has specialized in resale homes has had to learn how to get a property maximum exposure in the shortest amount of time possible. One of the best way to accomplish this through the internet. A National Association of REALTORS study shows us that 82% of all home buyers start searching for their new home on the internet. This number is even higher with younger more technology savvy buyers.

Recently there has been some very interesting marketing taking place in the new homes arena in metro Atlanta. Unfortunately for some of the builders this marketing is all about price reductions, bonuses and increased commissions to the buyer’s agent. While these tactics are benefical to the buyer’s and buyer’s agents, are they what is best for the market? When I am representing the buyer, I for one am not opposed to a higher commission percentage or agent bonus as it is just additional income for me to do what I was going to do anyway, find my client the best possible home to meet their wants and needs. But the results on the marketplace can have some lingering effect which are not very positive for the builder or the buyer. As price reductions are made and homes become sold the one thing that is affected is the appraisal. Appraisals are based on sales comparisons and the lingering effect of lower prices may remain for six months to a year, possibly longer. Depending on how many homes a builder has for sale in a particular neighborhood, the lower appraisal may generate a bit of a catch 22. I don’t believe that this would be the desired result. Price the home competitively to start with and then get it as much exposure as possible.

So here is a thought for Atlanta builders who fall into the category of being internet marketing challenged, "Why not employ a REALTOR® with a proven marketing plan to handle your new homes"? What have you got to loose?