Atlanta Real Estate | Atlanta Housing News for Real Estate

Years ago in real estate I can remember the phrase "Dress for Success" was a major component of sales presentations.  There was not a seminar you would attend that did not stress the fact.  A trip into the office confirmed that there was a "Dress code" that complimented the professional image of the company you were associated with.  This was not limited to just one company, but in several companies that I was associated with.  The first reason was that we represented our clients in the biggest possible transaction of their lives. Their home or purchase represented their dreams, a fulfillment of their goals, the sweat of many hours working overtime and saving to achieve those goals.  Dressing up, made clients feel at ease that someone competent was assisting them.  Those were the times that a real estate agent actually qualified the buyer financially before giving them to a loan officer.  Buyers and sellers listened to our advice, and out opinions were respected.

In the early 2000's professionalism waned when catering to the more casual "Dot com and Tel.Com" crowds.  Dress and appearance gave way to a more casual attitude with this easy money crowd.  This casual crowd were not bankers, or corporate biggies that climbed up the ladder.  The tech crowd was a group of buyers and sellers that took the elevator to the top floor.  These were not blue collar workers that clocked double shifts to get overtime pay to buy a home.  They started off with 6 figures when they graduated college and we offered major stock options.  This was a crowd that made big money very quickly and wanted to use credit to purchase their homes and use excess cash to keep their investments making money and funding their 401Ks or SEP IRAs.  Casual ruled the day, and everyone made money.  The experienced and professional real estate agent was now a dinosaur and a hairdresser, golf pro or personal trainer took the place as the real estate agent...and no one batted an eye.

Now we are in a different time in real estate.  Monehy matters again, nad easy credit does not pull the wieght. For the consumer we have gone full circle in our importance.  Knowledge and experience are the only way out of the mess we are in.  Buyers and sellers both need assurances, they need something more than a dressed up manaquin assure them you have the skill set and solid experience they need to assist them.  Dressing professional may also give you an edge in negotiations. Appearances and perception is everything. 

Do you think it is time we revisit "Dressing for Success?"

Today's Headlines..."Mortgage Applications are Off By 19%" places fear in the hearts of many.  I confess, it is beyound scary even if the news shrugs it off and the stock markets climb higher. That is not where I want to place my money.  I think it is safe  in real estate...at least at the end of the day at least I own something.

The question is are you really surprised at any of today's news, even if in your hearts you already know the answers to the stories may be hald truths or just totally wrong.  Each day bad news is released and we are inundated with senseless news stories do not include the reason why this is all happening.  YOu could learn more from reading a lable on a can of soup than reading the spin. 

First of all rates are rising when they should be dropping to absorb the excess inventory.  But hey...it is political payback time for the politicians to reward all their supporters with your tax dollars.  Second.  Buyers are going to remain cautious with spending in this current economy.  The words 'frugal' and 'cautious' come to mind. 

Consumers are like "Deer in headlights" at this moment in time.  They are worried about their jobs, finances, 401K's, their retirement and stocks.  Can they make their next car payment, keep the utilities on and put food on the table is their primary concern right now.  We cannot help it if the news doesn't think that 473,000 more persons laid off is a good thing, nor do we have the stomach to spin it good news.  We must make allowances for our clients, and share some local good news to counteract the national headlines and offer solutions not commiseration.

Todays Business Headlines:

• Mortgage Applications are Off By 19%
• U.S. Companies Cut Payrolls by 473,000
• Pending Home Sales rise by .01%

All too often in real estate the rush is one for the sales and ringing up the closings on the office board.  In real estate many are consumed with their deals, but forget their clients needs and fears.  If you haven't noticed, we live in epic times.  Many clients have lost jobs, or are afraid they are next on the chopping block.  There are those also that lost retirements, 401K's, and much of the equity in their homes or second homes.  Many buyers were just in the wrong place in time when they had the misfortune in being relocated by their company for a job that no longer exists.  These situations are not new in real estate, we frequently are made to deal with the sale of estates, the death of a spouse, a divorce or major life event changes such as a catastrophic illness.  What is different today is that we are in a tsunami of events that we have become numbed to...that  we are accepting of all the events on a subliminal level..or at least profess we are.  We wonder why sales have slowed, and self doubt creeps in.  We feel we have lost our real estate Mojo!  We haven't.

We mustn't lose sight of the fact that buyers and sellers are also numbed to the news.  They know less about real estate than a full time professional, and on some levels do not know how bad things became in the last few years. The average homeowner that buys a home on the average of 1 every 8 years does not get it.  Unlike the real estate agent that does 30-40 deals a year - they cannot comprehend the magnitude of the change.  They are still looking at last years sales in the neighborhood, and don't know why you are so negative in pricing.  Buyers are no different.  They see other workers being laid off, and local retail establishments closing.  Perhaps they are the victim of a bank closure and lost some funds.  They are paralyzed in place.    They read the headlines in the paper and they are reluctant to make a purchase even though mortgage rates are still at historic lows.  Can you blame them?  Or are you ticked off that the buyer you are working for the last 4 months and showed 140 homes cannot commit?  Do you resent the fact your seller is demanding 'open houses' everyweekend and ad placements in useless real estate publications?

The secret in this market is don't rush your clients into making a hasty decision. Do not judge them from your position as their agent.  Try putting yourself in their shoes...instead of your next closing.

If you were a buyer:

• Would you buy right now?
• Would you buy the home they are looking at?
• Would you pay the price the seller is asking?
• Would you buy the home in the condition it is in?
• Are their better deals out there?
• Are you buying wholesale or retail?
• Are their better deals in foreclosures?

If you were a seller:

• Is it the right time to sell?
• Will the market come back next year?
• What else are the buyers looking at?
• Will next year be a better time to get your price?
• If you were a buyer, would you buy your home?
• What is the home lacking?
• How does your home compare to the competition?

The latest Case Shiller Index index was just released today and everyone has out a magnifying glass trying to read the 'real estate tea leaves' and predicting it isn't all bad.  The truth of the matter is that home prices in the Atlanta area fell almost 15% from last April.  If I was a seller that isn't good news.  15% can add up very quickly.  Sellers need to realize that if they purchased a home in the last few years in teh Atlanta Metro area, it will be almost next to impossible to break even.  No, no one is giving away your home, it just may not be worth the same.

• $100000 - 15% =  85K Net (a loss of 15K)
• $200000 - 15% = 170K Net (a loss of 30K)
• $300000 - 15% = 255K Net (a loss of 45K)
• $400000 - 15% = 340K Net (a loss of 60K )
• $500000 - 15% = 425K Net (a Loss of 75K)

There is an old saying that says "Ice Cream has No Bones!"   It does not mean anything but in real estate we are inundated with nonsense everyday in negotiations.  Slight of hand works great in a magic show, but not in contact negotiations where it paves the way for fraud and deception.  Despite our own innermost warnings, we have become so numbed to gibberish and doubletalk we sometimes move forward into a deal that we should not.  Such actions redefine the word "Trust" and only can be likened to the wolves gaurding the sheep.  New homes builders seem to abuse this issue the most, but the issues are not limited to new homes.   The signs are almost routine for anyone with expereinced in real estate.  The usual suspects quickly arise: undisclosed fees, and conditions seem to surface out of nowhere when an agent is in counter.  Just when you think you have the costs nailed down another surprise or addional fee pops up.  The hidden fees are quoted to you as Gospel, as if you cshould have known all along... yet they are no where to be found anywhere in writing or disclosed in any fashion. It is like playing a board game and making up the rules as you go along.   Lot premiums, credits and elevation upgrades are all ways to shake more money out of your clients pockets.  More often than not the photos used in in the builders MLS photos are really homes that are priced about 350K more.  At this juncture, the builder would say.."Oh, you want a brick front?  We can do it!  The addional costs will be...XXXX!"   They do not even disclaim these are 'to be built' models or the photo of a similar home or 'Demo' home.  The final product that is sold in no shape or form looks like anything similar to the displayed product.  The only words that come to mind are "bait and switch!"  The buyer often feels like they have been had!  This is not a good position

The only way to protect your clients and yourself is to make sure that every option, each elevation, every additional upgrade, all paid closing costs, terms, and credits are placed in writing are signed off by all parties.  Promises of "You can trust me", ...or "I promise I will do it" should never be accepted by anyone.  In just about every state the statute of fraud demands all contracts, and terms be fully exucuted by all parties and it is wise to be in unambiguious language.  This should also apply to all counters in negotiations, and not signed off on until the parties acknowledge all that was agreed upon is in writing, and that the totals for services and upgrades are placed side by side the itemized items.

In real estate these days more of our life has become digital.  We send contracts in .pdf file formats, use digital camera, email digital photos,  write contracts on line, network by Blogging and drive business to ourselves via the world wide web.  Time is truly of the essence these days where we communicate with sellers around the globe, sharing inspection reports, video tours as soon as they are in our possession.  A cell phone call can instantly confirm a receipt or a transmission sent.

One of the tools I use the most in the last year for Blogging, web development and sharing information and reports with clients, inspectors, home buyers, sellers and handymen is Snag-It!  It is a reasonably priced program.  You can do so many things with it, mark up a photo, enhance a craph, create graphics and headers and so much more.  It is worth taking a look at f you have not tried it.  There is a free download trial avalable, and you can purchase it for $49,95

Below is a mark up of an an inspection for items requested for repair.

I read an interesting article recently that talked about real estate agents that really just do not get it. Many of their actions are self defeating to say the least.  They spend a lot of unproductive time needlessly pursuing businesses that is totally counterproductive.  They will list overpriced homes that they will never sell.  These are so improperly price that no other seasoned agent will show, it will not appraise if they do get an offer.  We cannot compensate in price when sellers are upside down.  These agents will work short sales for months while the odds are probably 20-to-1 that it will never close or they may not get paid on. In the end they will be so stressed out with so little compensation they will find it is now their own life that is in a financial shamble.   It is important to realize that we are not social workers, bankruptcy attorneys or miracle workers. 

These agents have not sat back and taken a personal inventory of what they are doing, is it cost effective and will it pay the bills? I personally know of some agents that have listed over 15 homes and not one are under contract.  In fact many have only have less than one sale to their name...yet boast they are experts or real estate consultants.  They are playing real estate at the expense of others and do not have the ability to change their destructive obsessive compulsive behavior.  As homes go unsold sellers have let the clock run out and are in a certain death overtimes...sellers are doomed to roll into foreclosure as the financial noose tightens around their neck.  Where there was time to sell a home, all is lost if an agent is consumed with winning or buying the listing at any cost.  It is more important to tell the sellers the truth and not sugar coat the facts so they alone will win the listing.  It is the seller's money we are talking about here, not a dreamed about commission.

I've been in real estate for quite sometime and realize sometimes there are no easy answers.  I have a conscience and tell sellers all the options even if it means I do not get the listing.  For some sellers they come to the conclusion that it may be better to postpone the thought of selling a home until times improve.  For others is is a hard pill to swallow when they realize that they are upside down. A visit to an attorney may provide more solutions.  For marginal sellers with some equity - it is wise to prepare them for what they are up against.  Paint, appearance and price may allow them to get out from underneath the mess they are in...because lies won't!  "Honesty is always the best Policy!"

 In our Georgia MLS systems the west side of north Fulton County is referred to as "Area 13!"  To the south side it is bounded by the Chattahoochee River, to the East it is bounded by the GA 400 and to the north... Forsyth County and to the west Cherokee and Cobb Counties.  Sales in Area 13 have long led the Atlanta area and contain sought after cities of Roswell to the South, The City of Alpharetta, and the City of Milton.  Recently homes sales as in many areas of the United States have fallen off dramatically, and home prices are softening.  Home sellers and buyers need to be aware that what homes were selling for in the last few years, have no bearing on today's prices.

Anyone that lives in Alpharetta GA knows that the talk of the town for several years was the redevelopment of downtown Alpharetta and the new City Center was just around the corner. The plans was to have included would have included a new City Hall, retail and office space, underground parking, and 5 acre town park. It has just been announced this week that things have changed.  The new city hall and neighboring development will just have to wait until the economy improves.  Neighboring business and new homes developments were disappointed in the announcement.  New town homes neighborhoods sold their homes with the promise of the new developement and the changes it would bring to down town Alpharetta.  The city of Alpharetta has most likely seen much of its anticipated revenue disappear with the slowdown in new construction, vacant retail real estate, and the now abandoned or stalled development of the Prospect Park development and anchor tenants.

Even in good times, real estate is an industry where over 80% of the agents will not make it.  Most agents never survive in real estate because they did not enter the business with their eyes open.  They became real estate agents because they assumed you can make quick easy money and a lot of it.  They were enamored with a false image without looking at the reality of what it takes to survive.  Long hours, and many dissappointments do pave a pathway for success.  We can learn by our mistakes and no repeat them in the future.  Those that cannot grasp it sometimes takes many months to close a buyer when there is an excess of inventory, and that is almost impossible to sell a home while interest rates are high and no one is looking to buy a home...will just not make it.  Instead of saving money when times were good, many agents spent whatever they earned and more on expensive cars, dining out and vacations with no expenses spared.  The reality of real estate is quite different than watching an easy home sale on TV.  There are times where we have many months of no closings, followed by a great month where just about everything we earn is due on maxed out credit cards, estimated taxes, catching up on bills.  For survivors in the industry, success has always been built on common sense.  Having separate charge accounts for personal life and business, for keeping a set of books to see profit and loss, keeping spending in control, placing funds aside for taxes and expenses and most importantly lead generation.

The false notion that times are just around the corner and magically fall into their laps has caused the demise of many an agent.  They assumed that their sphere of influence, referrals, relocations would pull their butts out of the fire at the last moment, and are easily disappointed when once loyal clients list or buy with someone else.  The secret of surviving and making a great living in real estate has always come from being a self starter and consistently developing your own leads.  It is built on actual sales knoweldge, and understanding the fundimentals of marketing and sales.  Success cannot be purchased at seminars, with real estate software or even Blogging.  If you have no real estate skills of plans, and don't really understand the basics of real estate...Blogging is not going to help.  Success starts with a plan, a budget, a purpose and a solid source of lead generation that delivers good and bad leads to every day. Do you understand real estate? Do you have a plan?  Those that do will survive, and their clients will not be dissppointed.  Better yet...these agents will prosper even in tough times!