Real Estate Advisor - January 2011 Prudential Newsletter

Metro Atlanta Property Values and Property Taxes!

The Atlanta Journal Constitution recently published a series of articles on the disparity between local property values and property taxes. The article stated that tax appraisers for the top 5 metro Atlanta counties had reduced home valuations by $17.8 billion but may still be significantly higher than the actual market values.

Click here to read a copy of the article. In 2010, the State of Georgia General Assembly approved State Bill 346 which states that in 2011 all counties must send every property owner an annual Notice of Current Assessment, indicating property value. In addition, your property value cannot exceed the sale price if it was sold in the previous year. Counties must include any open-market sales including short sales and foreclosures for purposes of determining property values. If you would like to see a report on pre-foreclosures, foreclosures and bank-owned property sales in your local area, please contact me and I would be happy to provide this for you. Property owners will have 45 days to appeal an appraisal. Click here for an article that describes your options to pursue lowering your property tax bill.

If You Have Questions, Contact Me To Learn More!

When Will Home Values Rise Again?




So when will Metro Atlanta home values return to peak levels again? Our analysis predicts that by the 2015 - 2016 timeframe, our home values will return to the levels of 2007. The Case-Shiller Index reports that home values in Metro Atlanta are down around 21% from the peak of summer 2007. We expect values to remain flat for 2011 and 2012 due to large numbers of short sales and foreclosures. We predict that over 60% of total transactions in 2011 will be short sales and foreclosures. By 2013, we expect short sales and foreclosures to return to more normal levels. The new homes inventory will still be historically low. At the peak, we had 60,000 new home starts in Metro Atlanta. In the last 12 months, we saw less than 5,800 starts. The reality is that most homes are being sold below their replacement cost - so builders cannot consistently make a profit today. There are some "pockets of opportunity" for builders where they have secured lots at reduced rates and the competitive landscape is right. However, we do not expect to see a dramatic rise in new home starts between now and the 2013 timeframe. Therefore, we will have an undersupply of inventory beginning in 2013. For our analysis, we are assuming housing demands remains at the current levels. There is a reasonable argument that it may improve but we are trying to be conservative. So yes, 2013 will bring back a seller’s market and we will see a few years of abnormally high appreciation rates! The historical appreciation for Georgia has been around 4% so we predict a 7% appreciation rate in 2013, 2014 and possibly 2015. By the 2015 - 2016 timeframe, the new homes engines will start up again. We expect to get back to around 25,000 starts per year. Then, supply and demand will rebalance and we expect to see the normal 4% appreciation per year return. Of course, every local market is different so contact me to discuss your specific situation.


The key indicator to watch will be the pace of short sales and foreclosures entering the market during the next two years. If they enter the market too fast, we could see home value drop further. If they enter too slow, we could see flat home values for a longer period. We have reports that can show the numbers in your local area and help you make better real estate decisions.


Did you know that even move-down sellers should be active in this market? Even if you lose money on your current property, I can show the math which proves the benefit of selling now versus waiting for the value to return on your current home. This analysis considers the rising future prices, plus incremental carrying costs plus rising mortgage rates. The amount of money at stake is staggering!

Contact me to learn more or get an analysis of your specific situation.

Real Estate Magazine Highlights Prudential Georgia Realty

Real Estate magazine recently published an article about Dan Forsman (President and CEO) and the rise of Prudential Georgia Realty to become the market leader for Metro Atlanta, North Georgia, the Southern Crescent and West Georgia markets. The article provides some insight about Dan’s story - which is truly a classic American success story. It also describes how PGR has invested in an "advanced infrastructure of marketing, technology, information resources and agent support" that has been the key to our growth in market share over the past three years. Trendgraphix reports that PGR has the most transactions, represents the most buyers and has more listings than any other aggregate brokerage. Click here to read the entire article.




Contact me to learn more about how we can help you make better real estate decisions.


Thank You.


I hope you found this newsletter informative. The real estate market is changing quickly. I have access to the latest market trends and proprietary informationthat is not available to the public.

If you are considering listing your property for the winter or spring market, contact me quickly. The market is changing fast right now and you need to have a winning marketing strategy based upon the most up-to-date market facts.


If you are interested in buying, I can help you find the right property. There are many new details to consider when looking at the options today. This is especially true for short sales, builder foreclosures, bank-owned properties and auction properties.

Merry Christmas Everyone!

10 Reasons to List During the Holiday Season

1. You may receive more money from your home now because you have less competition.


2. Your home has a warm and inviting glow during the Holidays.


3. One of the highest percentages of “Listings Sold” to “Listings Taken” occur during this time of year.


4. Winter prospects are more serious, focused buyers.


5. Throughout the Holiday Season, you may restrict showings during your personal family events.


6. Buyers have more time to look at homes during the Holidays, especially during vacations.


7. January is traditionally the biggest transfer month and corporate transferees, who need to buy a home now, can’t wait until Spring.


8. The holiday season is a time of heightened consumer spending.


9. When you sell during the Winter, you have an opportunity to buy during the Spring, when many more homes are on the market.


10. Interest rates are still at historic lows; but are forecast to rise in the new year.

Happy Thanksgiving From My Family To Yours!!!

THANK YOU VETERANS!

Today is really my favorite "holiday" of the year.  THANK YOU VETERANS!And a very special Thank You, to my favorite WWII Veteran-Mr. Harold Humphries, who I will miss deeply today, since he recently passed. He was also a Suwanee resident.


We will not forget your sacrifice, service and devotion to this country.
 

Mr Harold Humphries, WWII, USS Hornet

 
Thank You to my son, who of course, is my favorite soldier,  and my favorite Korean War Veteran, my father.  

Two New Suwanee Residents

I recently helped two NCR transferees find and close on a home in Suwanee, GA. Here's what they have to say:

"Beverly listens and focuses on what her clients tell her are important. She was always available to us, even with short notice. We enjoyed her expertise. She's a genuine person". Holly and Matt Laddusaw  





Charlene George

"Beverly is a true professional. She's and expert in her field and helped me through the relocation process to find a home in a community that's just right for me".  Charlene George

Welcome to Suwanee, Holly, Matt and Charlene!!!!

Suwanee Day Parade

It was a beautiful day, in more ways than one. This year Prudential Georgia Realty created a float and participated in the Suwanee Day Parade. Our float, though fun to create was very labor intensive. We hand-made about 2500 red, white and blue "flowers" to celebrate the theme, Hometown Heroes. We were lucky enough to "man" our float with a soldier, who just retired. Very impressive man, was in NYC on 911 and has had multiple tours of duty all over the world, including Iraq and Afghanistan. Trust me, he has storiesl!

I was very proud to walkin the parade by our float and see how the public honored the soldier. People waved and shouted "Thank you for your service!!" Indeed! And thank you Suwanee for honoring our hometown heroes!

See the making of the float and the Parade

Slideshow: Suwanee Day Festival 2010 - Slideshow

                                 

Suwanabee was along for the ride too!

Do not adjust your vision...what you're reading is correct

Tax rates go down in the City of Suwanee...it's not much of a savings, but the City of Suwanee has lowered the millage rate to 5.70, from 5.77 for 2011. Hey, every little bit helps and it beats the normal alternative! 

See full story from Gwinnett Daily Post.

ANTS and Air Conditioners??!!! Who knew?

My air conditioner has been broken since Friday. The repairman just arrived (Monday) and to my surprise-the problem is Ants!!! Seems some ants got in the way of the "contact" on the unit outside. As the ant got japped, the "aroma" lured more ants to the same area, and after a while, there was an ant buildup, which prevented the necessary contact. The area was cleared and he recommends ant killer in the unit(s), as well as around the unit(s) each Spring.

As my father would say...."I hain't never!". Gotta be Southern to understand this one, y'all....

Plant Your Roots with Prudential

Be sure to stop by the grand opening of White State Park, Suwanee's community garden from 1-4 pm today.

We've planted a mystery plant in Prudential's plot, lot 60. Can you guess what it is? Stop by and submit your guess. You might win a beautiful Dragonfly Lantern.

And, there are lots of other activities to enjoy today. See you there!

And....THE Suwanabee will be there too. Bees love gardens!

North Gwinnett in Suwanee makes Newsweek's America's Best List

Each year, Newsweek compiles a list of the best high schools in America, based on how challenging the staff makes the school for the students. Only six percent of all the schools in the United States made the list.

North Gwinnett came in at the top of the Georgia list, at 186. See entire list

Top Moving States and Cities of 2009

Interesting read below from RISMEDIA:


RISMEDIA, May 27, 2010--According to Movers.com usage data, the states that had the most people moving in and out 2009 were California, Florida, Texas, New York, Georgia, Illinois, Virginia, and Arizona.

A large number of moves from these particular states is not that surprising, seeing as most of them have very large populations. If, however, in each state, the total number of move-outs is subtracted from the total number of move-ins, a picture of the change in population due to moves begins to take shape.

For example, California had the most total moves by far, but the difference between move-ins and move-outs is negligible, meaning that the population was not drastically increased or decreased due to residents moving in or out of the state. New York and Texas saw the most drastic population changes due to moving. New York did not regain (via move-ins) nearly 33 percent of the population that moved out. Texas saw the opposite occur, gaining nearly 50 percent more than the population that moved out.

The cities with the most moving turnover (total move-ins and move-outs) were Chicago, Houston, and Dallas. The difference in moves in and out in Chicago was negligible. Houston and Dallas, on the other hand, gained 57.6 percent and 41.2 percent more than the population that moved out (respectively).

Brooklyn is also worth noting. It had the third largest number of move-outs and did not have a significant number of move-ins. Conversely, Atlanta, San Diego, and Austin had the fourth, sixth, and seventh most number of move-ins (respectively) and did not have a significant number of move-outs.

Memorial Day...a day to remember REAL American Idols

Happy Memorial Day to the "REAL" American Idols - the Veterans of the United States of America.  We remember and honor your courage, strength and profound willingness to defend our way of life. Thank you for your incredible sacrifice.

It is the
VETERAN,
not the preacher,
who has given us freedom of religion.

It is
the VETERAN,
not the reporter,
who has given us freedom of the press.

It is
the VETERAN,
not the poet,
who has given us freedom of speech.

It is
the VETERAN,
not the campus organizer,
who has given us freedom to assemble.


It is
the VETERAN,
not the lawyer,
who has given us the right to a fair trial.


It is
the VETERAN,
not the politician,
Who has given us the right to vote.

A personal THANK YOU to my favorite Suwanee WWII Veteran, Mr Harold Humphries. And, my newest American Idol...Mr Wilburn Anderson. And of course, my favorite soldier of all time, my son, Barry.  

Featured Suwanee HUD Home

HUD Home for sale:

Address: 3901 Oak Crossing Drive, Suwanee, GA
List Price: $161,000
Features: 4 beds, 2.5 baths, built 2002, S/T amenities
PER APPRAISER PROPERTY DOES NOT MEET FHA MINIMUM PROPERTY REQUIREMENTS-REPAIRS EXCEED $5000. **original list date 3/11/10** Property Conditions Report Available

                      

 
 
 
 
 
 
 
 
 
I can show you this HUD home - or other HUD homes like it.
 
This is a HUD-owned property. To view all HUD properties available for sasle in Georgia, please visit www.hudpemco.com. Our HUD-registered agents can sell and show you any home you find of interest on the site.   
 

Pssssttt!

SUWANABEE here. I LOVE the new community garden.

Prudential Georgia Realty Plants More Roots in Suwanee!

Suwanee's new Community Garden, Harvest Farm has come to life! And...Prudential Georgia Realty has leased a large plot. We've dug the holes, built some boxes, filled the dirt, tilled the soil, and planted some roots! It was a LOT of hard work...but it was fun!!!

Gwinnett County Public Schools, finalist for prestigious education award

Once again, Gwinnett County Public Schools is a finalist for The Broad Prize for Urban Education award. This is the second consecutive year Gwinnett County Public schools has achieved this honor.

The winner of The Broad Prize, to be announced on Tuesday, Oct. 19 in New York City, will receive $1 million in college scholarships for high school seniors who will graduate in 2011. The four finalist districts will each receive $250,000 in college scholarships.

See press release and find out more about this prestigious honor.

Congratulations, GCPS!

33 More days to benefit from your own tax payer dollars!!

The Cost of Waiting!

($350K Property, 5% down payment)

($200K Property, 5% down payment)

Take advantage of the Government Buyer Tax Credits while you can! Your tax dollars are paying for this benefit. Why not get back some of your own hard earned money while you can!!!!

"When are we going to eat, What are we going to eat, Where are we going to eat".

That's what a Frenchman I once knew used to say:

Suwanee Town Center already has some great restaurants, but more are on the way. Think Mellow Mushroom. How about Maracas Cantina and Planet Smoothie?

And, "unofficially"  I've heard that The Brown Bag Deli, originated in PA, may be taking over the PJ's coffee spot. We sure have missed PJ's Coffee!

Suwanee will soon have many more dining choices so now the only questions to answer, will be "When are we going to eat and What are we going to eat"! 

Come and see all Suwanee Town Center has to offer!  

Are you a Watcher? A Wonderer? A Maker?

Which One Are You? 

This truly may be THE best time, historically, to buy real estate.

Are you going to Watch It Happen?

Wonder What Happened?

Or Make It Happen?  

----------------------------------------------------------------------

Attn Buyers and Sellers!! If you're a Maker...you got 56 more days to Make It Happen!!

• If you are under contract to purchase a home by 4/30/10 and scheduled to close no later than 6/30/10, then you may put $6500-$8000 in your pocket. Make it happen!
• Did you know that FHA guidelines will be changing this Spring? Likely changes are higher mortgage insurance premiums and limited amounts the Seller can contribute to Buyer closing costs.
• Most economic experts believe that interest rates will be going up this year too. So, if you're on the fence because you think home prices may go down, consider the fact the higher interest rates could offset any gain you may achieve from reduced sale prices.

If you're a Watcher, grab some popcorn, sit tight and stay tuned to the Spring Real Estate Market. There will be a lot to watch about real estate this Spring. And, if you're a wonderer, you're probably going to have a very historic real estate market to look back on and ponder.

This truly may be THE best time, historically, to buy real estate. Are you going to MAKE IT HAPPEN? It's your move... 

And the house finally closed.....

Another Suwanee home sold!! But, it wasn't without some hurdles. Now, these are not your ordinary hurdles, mind you.

The first delay was due to the lender requiring the buyer to change from an FHA loan to a conventional loan. This would require the buyer to put 20% down instead of the 3.5% required by FHA. Ok. The buyer agreed, reluctantly, but he loved the home and wanted to move forward. The first appraisal from the FHA loan came in at contract price.

But, another appraisal was required because of the different loan program. Ok. The appraisal was ordered and completed (delayed the closing another 7-10 days) and came in higher than contract price. Wow, that should make the buyer happy, right? Should really make the lender happy, right? Because now the buyer has lots of instant equity, right? Wrong! Because the value came in HIGHER than the contract price, the new HVCC "government" regulations kicked in and required to lender to send the appraisal to a field review, which is essentially a third appraisal. Time marched on, delaying the closing for a third time. Finally, the field review came back and the contract price (though lower than the appraisal price) was approved.

A couple of days after that - we closed!

All in all, the delay was about a month. A great big Thank You to both the buyer and seller. Much patience was required but we made it happen without taking anybody out. That's real estate today!  

It's the Worst of Times...It's the Best of Times

It's the worst of times (sellers). It's the best of times (buyers).

But, one thing is for sure. It will not be like this forever.

Buyers! Did you know the buyer tax credit for a potential of $8000 runs out in April? You must be under contract to purchase a home by then, and then it must close by 6/30/2010. Did you know interest rates are still at historicial lows, usually around 5%?

Sellers ask me "why should I even try to sell right now? Shouldn't I wait till Summer? Maybe the market will pick up then".

Well, let's take a look at that.

Elyce Glink, host of "Expert Real Estate Tips," an Internet video show, and many other real estate experts expect foreclosures to flood the market in the near future as interest rates adjust. Believe it or not, housing inventory  is down considerably, compared to this time last year. Why wait to be competitive with the many foreclosures expected to enter the market this year? If you have a home that has been well maintained and shows well, buyers are thirsting to see "nice homes", not just foreclosures.

And, Sellers, it's not just "first time home buyers" who may qualify for a tax credit. If you have been in your home for five of the last eight years, you may qualify for up to $6500 tax credit too. Again, the interest rates are phenomenal. Purchasing a home this time next year could quite possible be 2-3 points higher as inflation sets in, as many economic experts predict.  

With "motivated buyers" on the prowl, lower inventory for buyers to choose from, and outstanding interest rates, it looks like a perfect time to sell. It may be as good as it gets for the Seller of 2010. Don't miss this opportunity!  

The Appraisal Bear has Struck Again!

Once again, an appraisal has halted a closing! It came in 12K below contract price. Reason? Even though this sale is a "normal" sale, the appraiser must use comps that were short sales or foreclosures, so that affects the value of a "normal" sale too. Stay tuned for how we work it out.....

FHA to Allow Flip Sales?

Rumor has it....FHA will now allow flip sales. Is this true?

Here is the response from prominent closing attorneys, Weissman, Nowack, Curry and Wilco:

As a matter of fact, yes, subject to some restrictions. Up until now, FHA would not insure a loan if the sales contract was dated within 90 days of the seller's purchase of the property. In other words, to qualify for FHA financing, the seller had to have owned the property for longer than 90 days. However, by memorandum dated January 15, 2010, David H. Stevens, Assistant Secretary for Housing - Federal Housing Commissioner, issued a one year wavier (effective February 1, 2010 through January 31, 2011) from this. Starting February 1, 2010, FHA will insure a loan even though the seller owned the property for less than 90 days.


The following conditions apply: (1) the transactions must all be arms-length with no identify of interest between buyer and seller or other parties to the transaction; (2) if the price is increasing 20% or more (i.e., seller buys at $100,000 and, within 90 days contracts to sell at $120,000 or more) then the lender must justify the increased value by maintaining a 2nd appraisal or other evidence of renovations, repairs, etc. and order a property inspection. The inspection does not need to be FHA approved, but can have no interest in the property or relationship with the seller. The inspector must be hired, and paid, by the lender, although the lender can pass this expense along to the buyer. This wavier does not apply to reverse mortgages.

Investors are going to love this.....

Something Every Buyer in GA Wants

What has every Buyer I've worked with since 1994 wanted (besides a good deal)? That's easy - Square footage provided on the listing!!

In the past, the multiple list services in Georgia did not allow ANY reference to square footage on listings. This policy was due to past lawsuits that involved discrepanies in the square footage number advertised in the mls and the actual square footage. So, long ago, the policy was set: Restrict any reference to square footage. And believe me, they did. We weren't even allowed to use a reference like: Nearly 3000 SF, almost 3000 SF, over 3000 SF...you get the picture. And, buyers from all over the country hated it!!

That was then. This is now. First Multiple List Service has finally kicked through all the legal mumbo jumbo and will now allow agents to advertise square footage on the listing. We will just need to reference the source of the number, like tax record, appraisal, etc. Finally!!!

New School of Pharmacy Opens this Year in Suwanee

The Philadelphia College of Osteopathic Medicine has a branch campus in Suwanee. And they are opening a new School of Pharmacy in August 2010. Wow!

2009, THE YEAR IN REVIEW

Highlights:

• Our new Prudential Georgia Realty office opened at Suwanee Town Center in January
• Valentine's Day Open House to thank past clients
• Buyers had incredible Buying Power, interest rates are low and $8000 Buyer tax credit
• Suwanee City Hall was completed, as well as rest of retail buildings
• Spectacular Spring...not too much rain, just right temps
• My Army son completed his Associate Degree and didn't deploy overseas this year
• My teenage son got his driver's license in August (see lowlights too)
• Sugar and Spice (my puppies) continue to add joy and love
• Seller tax credit added in October
• Extended buying season lasts into November, due to Buyer tax credit 
• Much less inventory on the market...good for sellers

Lowlights:

• Short sales are the most dreaded transaction, for agents, buyers and sellers
• Average sales price down about 17% from same time last year (Suwanee, Single Family)
• My teenage son got his driver's license in August
• Bank owned properties are often good deals for buyers, but must navigate thru the "our way or no way bank mentality"
• Unprecedented flooding in the Fall wreaks havoc
• Appraisal values continue to be nail biters (many appraisers not familiar with area due to new government rules) 
• Slower than normal summer buying season
• Conventional loans harder to get
• Much less inventory on the market by the end of the year...less choice for buyers, precursor for sellers market

Words to live by in 2010:

Life isn't fair, but it's still good.

Don't take yourself so seriously, no one else does.

However good a bad situation is, it will change.

Frame every so called "disaster" with these words: In five years, will this matter?