Atlanta Real Estate | Atlanta Housing News for Real Estate

Pay attention!!  Big changes are going to be proposed tomorrow in Washington DC that deal with the financial well being of the nation.  Already the plan has opened a very sharp debate an no one is talking but my fear is that it may send out the wrong message that things are so bad they cannot be fixed! 

The plan was announced late Friday night to insiders, and will be officially released Monday morning. There are going to be the biggest proposals of change since the Great Depression. The plan focuses on  a broader role for the Federal Reserve consolidating powers by eliminating overlapping areas of state and Federal regulators to gain oversight into investment banks and brokerages.  The plan also calls for Office of the Comptroller and the Office of Thrift Supervision to come under tighter Federal or centralized control to keep the credit crisis problems from getting worse.  It will create a "Super watchdog agency!  Other streamlining proposes the Securities and Exchange Commission to merge with the Commodities Futures Trading Commission!

Under the 200 page plan which will be released Monday morning is an effort to regain confidence in our economy.  Paulson (Former chairman of Goldman Sachs) want the Federal Reserve to become the center of oversight to control market stability.

I am a firm believer that less government is better government, and that this announcement may send shock-waves throughout the economy.  It is sort of like the situation we have on the boarder - we have all the rules, laws in place no one wants to be man enough to enforce them.  It is alos like the wolves gaurding the sheep!  Some of the institutions that they want to change have been in place since the Civil War.  It may concentrate too much power to too few!

• "Paulson To Propose Broad Overhaul Of US Financial Regulation" Forbes
• "Read the proposal" CNN Money 
• "US plans biggest shakeup of Wall Street watchdogs in 80 years"  Guardian
• "White House to Seek New Fed Power to Keep Markets Stable" New York Times
• "Wall Street Awaits Government Plan"  BusinessWeek
• "Battle lines form around Paulson's reforms"  MarketWatch
• "Long Fight Ahead for Treasury Blueprint"  Washington Post
• "Sweeping Changes in Paulson Plan" Wall Street Journal
• "Why the Paulson Plan is DOA" BusinessWeek

Atlanta Homes for Sale

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It is very hard to reign in the home prices in Spring because of this optimism!  It is the beginning of the selling season in many markets, there is always time to reduce the price!  Sellers are off on planet spring and their minds do not want to hear reality! The mantra is always the same!  "I just want to see if I can get my price...let's try it for a few weeks and see what we get."  That thinking in this market can get you into trouble!

In this Atlanta real estate market with over 86000 Atlanta homes for sale thinking like this can be fatal, the market is very different this year as opposed to years past.  There are too many homes for sale, foreclosures, new homes that are all vying for a much smaller supply of buyers.  Buyers this year are having a much tougher time of getting a loan because all the financing requirements have recently changed.  There are no 100% loans, and self employed are having a very difficult time getting affordable loans. 

So this Spring temper your expectations with a does of reality and when selling your home, weigh out all the facts, and price your home accordingly!  Atlanta homes that are in great condition, and priced correctly are still selling!

Atlanta Homes for Sale

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When we think of our business and how real estate agents are viewed, there is obviously some reason for the reputation our industry has earned.  Sub-prime, over priced homes, falling home values, upside down sellers, bad advice makes you really stop and think about ethics, morals and real empathy in our industry.  The real fix always starts with ourselves.  Doing the right thing at every chnace we get builds our self esteem in a good way!  People that we work wiht take notice of this and a by product may be repeat or referred business!  That is a great compliment!  We cannot change the world, but I can change how I act within our world.  We have the choice each day to become part of the cure or part of the madness.  I choose to make a difference in what I can do in my little piece of the world to be a part of the positive and above board.  Years ago I came across the "Seven Deadly Sins" by Mahatma Ghandi!  I found them very basic but to the point!  They are all about business, our behavior and attitudes.  We can all make a difference if we choose to do so!

Seven Deadly Sins refer to Societal Sins:

Atlanta Homes for Sale

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I was watching a financial home on CNN Money tonight where they brought up an interesting concept.   Years ago in real estate there was a term called "redlining" which meant that some minority areas were marked off as a bad area to make loans, and that made it difficult if next to impossible to obtain financing.   These are referred to as "Sub-Prime Loans!"  In the early part of this new century the push came on to make homeownership more affordable for minorities.  The request from Washington Dc was to increase home ownership for those that were left behind and increase their portion of home ownership up over 5% by 2010!  It sounds like a great idea, but in reality it changed the American Dream into a night mare by providing risky loans to persons that did not even understand what they were signing!  No Money?  No Job?  No Problem!  Reverse redlining making homeownership where not available before.  But was this not taking advantage of minorities that did not understand the complexities of the documents they were signing?  It is a concept that took advantage of persons that could normally not buy a home before.  It took advantage of the minorities that with in a short while could not afford to repay!  Predatory lending!  Countrywide mortgage even boasted on its own website #1 minority lender!  What is sad is this was known on the front side of the mortgages that this was an inevitability that the loans would fail!  These knowingly  bad loans were then sold off as securities and sold around the world as Collateralized Mortgage Obligations CMO, Securitized Mortgage Obligations SMO which have now place the banks of the world at risk!    It was a suckers rally and an addiction to money that would never materialize and created a global PONZI scheme built on greed and an increasing need for more appreciation of property values.  City governments, schools, pension funds invested heavily into the instruments.  The entire scheme was predicated on ever increasing home values and another buyer to bail you out of the home.  The problem is the buyers started to disappear as folks started to question the insanity of the times.  Then the foreclosures began to pull down the curtain and allow us all to view  the reality of the current market.  Too little regulation and too much money was lent to prevent the train wreck.  We are now just seeing the begining of the damage.

So my thoughts how come there has been no outcry of taking advantage of the minorities?  This may have been one of the biggest injustices to the poor and minority citizens in this nation.  Yet, there is no talk from any political candidates, no presidential candidates are speaking about the real issue, NAACP, the National Asociation of Realtors, and many other minority groups!  It is a hot potato that no one wants to touch!  Historically, this will be viewed as the largest perpetration of criminal fraud that started with taking advantage of minorities, and building one of the worlds largest lies that assets bubbles can only go higher, that only a fool would not buy into it, and no one can lose!  It could lead to a major recession or worse - yet no one is calling it for what it really is!

• Fast approvals
• Low monthly payments
• Consolidate your payments
• No money down
• Bad Credit, Bankruptcies OK!
• No closing Costs
• 100% Loans

Atlanta Homes for Sale

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• Not for nothing but!
• When hell freezes over!
• No way in hell!
• Exactly!
• Don't make me come over there!
• End of story!
• Let's not go there!
• Faggethabouddit! (Later 90's)
• It is what it is!
• In a New York Minute!
• How ya doin?
• Neither here nor there!
• Who died and left you in charge?
• Stop you're killing me!
• You're yanking my chain! 
• It's your dime!
• Are you tawkin to me?

Atlanta Homes for Sale

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I came across this Blog this morning for the first time that brought up the subject of ActiveRain introducing outside Blogs!  I would refer to them as branded sites with my own domain name!  I love the idea!  I was surprised that I've not heard about it before on ActiveRain.Com!  Has anyone read about this or know any information?  If so I would love to hear about it!   The Blog was written by Joel Burslem on Tuesday, December 4, 2007  "ActiveRain Launches Outside Blogs"

Personally I would like to have my own branded domain on a familiar platform and not have to leave such a great community!  I would have to know what would the price be, and what are the terms? 

PLEASE SHARE THOUGHTS AND INFO IF ANY!

Atlanta Homes for Sale

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Atlanta homes for sale Active listings.  Home in ventory is rising rapidly in Atlanta, and at this pace we will exceed last years numbers which stopped at just below 89000 active Atlanta MLS listings!  It is a great time to look for Atlanta homes for sale!  As of today there are now Active - 86400 Atlanta Properties Found in our primary First Multiple Listing Service FMLS.  and in GAMLS there are 85350 in Single Family / Condo - Townhouse.  There are 114386 Active in All Classes in GAMLS!  This is a very high Active listing number for this time of year, and represents an increase of 2000 +/- new listings in the last 2 weeks in the Atlanta Multiple listing.  Our biggest jump in listings in the Atlanta market are normally after Easter to coincide wiht early school dismissal in May.  This year Easter fell early and there were other factors to consider.  The Atlanta market has several other issues:

• Major loan fraud.  # 6 in nation.
• Declining home sales - February 2008 home sales dropped 38.8%
• Major new home competition.
• Long commute times and rising gas prices.
• A very large percentage of sub-prime borrowers.
• An extremely high foreclosure rate of over 7000 new foreclosures each month.
• Sluggish growth.

So this is a perfect storm so to speak of with rising inventory due to declining home sales, a hugh unsold new home inventory and foreclosures.

Atlanta Homes for Sale

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For all of us that are veterans in real estate we've heard every possible line a potential home seller can say while they try to negotiate in a position of strength!  The problem is that most of them really don't know what they are saying and how it will most likely kill any chances of selling!  Any person knows that it is wrong to paint yourself into a corner with no way out, yet home sellers do it every day.  Whether they realize it or not they speak in absolutes, and since we are only licensed as agents we must do the sellers bidding.  So if they say "No closing costs," it means there will be no deal in this market!

When we listen to the potential seller we must hear what they are really trying to accomplish!  Their words may not convey the real message!

• I really don't have to sell!
• I'm not giving my home away!
• I'm not selling unless I get my price!
• I'm just testing the market!  If I get my price I'll sell!
• I'm not in a rush to sell!
• My new home won't be ready for 5 months!
• I don't have to move!  I really love this home!
• I'm not doing anything!  The buyer can take it or leave it!
• I'm not paying closing costs or giving the buyer anything!
• The neighbors gave their home away!  I heard it was trashed!
• I took some time off to find myself!
• I'm not changing the carpet or painting!

What the seller may really be saying is:

• I am maxed out in my mortgage and cannot take less!
• We're divorcing.
• We've already pulled the credit out to pay off our debts!
• I lost my job, and I am working now at Starbuck's!
• They are eliminating my position next month!
• I am upside down, I owe more on the home than it is worth!
• The mortgage payment is resetting shortly, and I cannot pay it!
• I do not have that type of cash to bring to sell, and cannot afford to do so.
• The seller may have lost their job or know they are being laid off.
• I had a loss in income.
• I have a terminal illness and the mdical bills are forcing the sale!
• The seller's do not have the money for repairs, carpet or commission.

The sellers are really trying to firm up their net - getting the highest possible price. The seller may be more desperate, but do not want to give away their position! This real estate market is not for the faint of heart!  As real estate professionals we must ask real questions, and give real directions..if not we may excuse ourselves from the appointment if we are at a stalemate!  Pricing, commission, and appearance in this market are critical and not negotiable!

We must be able to ask real questions:

1. What is your reason for selling or relocating? 
2. What is your time-frame?
3. What is your target price?  What do you owe on the home?
4. Is there a divorce?  Do you have a copy of the divorce decree?
5. Are you in a mortgage where the payments are resetting?  If so when?
6. Are you currently employed? 
7. Do you have cash reserves?  (If unemployed)
8. Have you already purchased another home? Where? With whom?  When does it close?
9. Will that agent be representing you selling this home?
10. Are you willing to work with me as a team to sell this home?  Paint, price, repairs?

If we do not hear what we need to hear...move on!  NEXT!  We cannot help anyone unless the dialouge is based in truth!  It is no difference to the person that tells a doctor that they do not smoke, and the doctor is looking at the X-Rays!  Truth can be a starting place for assistance of a real professional!

Atlanta Homes for Sale

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No man is an island and neither is the effect that a sluggish real estate market has on local governments and municipalities!  The problem when a real estate market is rising - everyone thinks the party will never end!  Increasing home values, new more dense zoning are dollar signs in the eyes of tax assessors and city officials!  Higher home prices translates into more taxes, and in fact so much tax that to hide the fact the persons in charge want to spend it.  Increased education budgets, new school buses, raise in pay for employees, new fire trucks, new roads, local city projects now require acquisitions of land for new schools, firehouses and police stations.  Of course the employees will need new transportation and even a new fleet of patrol cars to better serve the community!  Spending on the local and county level are based upon an ever increasing revenue for the rising price of real estate.  But what happens when this stops?  What happens if home prices fall?  Did you ever wonder that if foreclosures increase exponentially and people also stop paying property tax?  What happens then?  Layoffs and budget cuts follow a declining tax revenue.

No one is immune from city, municipalities and state government layoffs!  Essential services  like police and fire may be spared until the end, but at some point their budget are also looked over to trim the fat.  The cutting of overtime is a start in many city departments!  But it goes further, schools after school activities like bands and sports can be the first items cut out of a budget.  Cities are in a real bind that taxes have been raised, and property values and tax revenue have declined.  The bigger budgets from the boom days now have to be slashed and will now provide mediocre services for a top dollar price!

How is your city doing in a declining real estate market?  Is your city affected?  Are any budget cuts in the plan?

Google News Results for "City Layoffs"

What does the FBI have to do with a Realtor Magazine 30 Under 30 Celebrity?  Mortgage fraud, money laundering, According to the FBI indictment "The defendants engaged in approximately 432 straw buyer transactions, and obtained control over approximately 227 properties with a total purchase price of over $100 million."  Wow!  For many years now I've received Realtor Magazine where they run featured stories on "Rookie of the Year" type stories that espouse youth, success and equate that to money earned.  At the end of reading many of those stories the reader feels like a loser.  It is easy to say to yourself "What the hell am I doing wrong?"  Some of the success stories are posted in a segment called "30 Under 30!" 

Well a few years ago I was speaking to someone while I was speaking at the NAR national convention in Orlando.  It was shared that one of the recipients of the "30 Under 30"  was no longer in the business!  I was shocked!  It was only one year before, I asked why the person would leave real estate if it was so lucrative, and made so much money!  The resonse?  "They just burned out!"   Now if you ask me, that is more of a story than a one trick pony!  Maybe it would make more sense to hold up those that achieved in the business for many years, and not equate it to dollars earned for one year!

So this breaking story on Inman News Story that came out last week about one of the 30 Under 30 recipiants Eva Mazzarella is being indicted on a variety of charges: including loan fraud!   It really makes you stop and think "Is it really all just about the money?   Is more money equated with a better character?  Is it a measure of one's soul?  Some of these high flying agents may reach these goals by selling 1 or a just a few million dollar deals.  There are other agents that may close 100 60K deals and never get a mention!  Is that fair?  Who has more real estate knowledge - the person closing 5 deals or the person closing 100 deals?  My experience shows me the person closing 100 units on the low price side of the scaled does not even get an honorable mention.

Sooner or later it Realtors have to drop this mentality from the dark ages that is all about crunching the numbers club.  To me it is about character and what you walk away with at the end of the day.  Several years ago in Atlanta I knew an "Atlanta new homes agent" that was # 1 in Gwinnett county! She represented one builder and his products alone!  She had closed an incredible amount of deals well into the 15 Million plus range, but the problem?  The agent took home less than 35K in annual salary!  Who is fooling whom?