Atlanta Real Estate | Atlanta Housing News for Real Estate

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!

Along with 2 other banks in the US Regulators closed the Community Bank of West Georgia (located in Villa Rica) and had another branch in Kennesaw GA...and Neighborhood Community Bank, located in Newnan, GA. Community Bank of West Georgia had total assets of $199.4 million and deposits of $182.5 million, according to the FDIC who was appointed as receiver of both banks.  This comes on the heels of  last weeks bank failure in Southern Community Bank in Fayetteville, GA.  This is the 11th bank failure in Georgia since the failure of Netbank in Alpharetta on September 28, 2007.

FDIC Failed Bank List

Recently, my son expressed an interest to go to real estate school and join us in the business. I advised him that there are several options to qualify to take the real estate test including: on-line, and classes at several real estate schools.  I also mentioned to him that many real estate companies also run a real estate school, and that it was probably a good idea to check them all out and make up his own mind where and when he would like to attend. On one of the schools run by a major national real estate company he was told they no longer run a real estate school.  My son asked "Why would you do that?"  Their response was "No one wants to be in real estate anymore...you can't make a living!"  My first thought was that my son was just joking, but then I realized he was not kidding. 

In many real estate markets some listing agents think they are clever advertising ‘pre-listings', or the latest one I've seen on some yard signs as a rider that says "coming soon!"  Upon further investigation, you'll find these listings are not entered into the MLS system.  Under most state real estate license boards it is illegal to advertise a property for sale where the listing agreement has not yet been signed. Implied representation is deceptive and fraudulent.  For most Realtors® and MLS board members there is an agreement and understanding that all participating brokers will place all their listings into the MLS systems, and do so within a predetermined time-frame which is usually 24-48 hours.  The reasoning is obvious; the listing agent will have an unfair advantage in having a listing all to themselves when the listing agreement is predicated on an exclusive right to sell MLS agreement where all members will have an opportunity to sell the listing.  Such behavior is referred to as "Pocketing the listing!"  Such behavior should be cracked down by the principal broker, and the behavior is totally unethical, and most probably illegal.

The latest FMLS statistics for the metro Atlanta homes for sale were just released the other day. There were 4,009 closings for all single family in May a decline of 24.7% compared to May 2008.  There were 3,481 closings for single family detached in May a decline of 23.1% from May, and there were 528 closings for single family attached homes (Condos, lofts, and town homes not fee simple) in May a decline 33.6% from May 2008 and a 60% decline from May 2006.

The average sale price for single family detached Atlanta homes in the Metro area in May 2009 was $199,668.  May 2009 average is still $75,000 below May 2007's average sale price.  The average price for single family attached was $145,312 in May a decline of 20.1% from May 2008.

It's very interesting when you read real estate Blogs or business news these days when they talk about the market recovery.  One month of improved sales does not mean a bottom has been hit and we are on the road to recovery.  Yes increased activity at open homes could be signs of the market picking up, and it can also be the spring markets were so anemic this year that any activity looks good.  I have followed real estate statistics for some time now in several markets.  The amazing things is that yes... sales are up, but compared to previous years they are way off their peaks.  Sales are off by as much as 50% in some markets, and prices are substantially lower.  I know that many homeowners are not doing cartwheels that the numbers of sales are up but that their home is worth a 100K less than 2 years ago.  What we all need to see in our real estate markets is many months of back to back increases in sales and price stabilization.  Other than that a few months do not constitute a trend.  It's just wishful thinking.