What Interest Rates Really Mean

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale. In turbulent economic times the media can’t wait to report what interest rates are doing. Pundits prognosticate, forecasters forecast and soothsayers sooth. When should you buy a home based upon interest rates and when is it the right time?

There is a fixation on what rates are doing. A fixation on what rates will be in the future and what rates were in the past. I’ve heard potential home buyers tell me, “I’m not sure I want to buy now because rates are ¼ percent higher now and I think I’ll wait.” I say, “Wait for what?” I say let’s not look at the rate but instead concentrate on what that rate actually represents … your monthly payment.

Let’s look at what an interest rate move of ¼ percent really does to a $200,000 mortgage. Say a 30-year interest rate at 6.00 percent “jumps” to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable? No. The payment on a $200,000 loan “jumps” by about $32 a month!

Now let’s get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64. Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it’s hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it's been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It's time to act.

To put into a different perspective, let's look at that same $200,000 home.  A 1/2 point increase on the rate at $63 a month is the equivalent to buying the home at almost $210,000. So in the grand scheme of things, quarter and half points won't make much difference.

(Contributing author:David Reed)

Hoschton - Gwinnett County's Best Kept Secret

Move over Grayson, Hoschton is now Gwinnett's best kept secret. If you do a search online for Hoschton Homes for sale, you'll likely be told all about how it's in Jackson county and your kids will go to Jackson County schools, even Wikipedia in all of it's wisdom has it wrong.

Hoschton is located in 4, yes, 4 Counties. Hall, Jackson, Barrow and Gwinnett all have some land in Hoschton. What many don't realize is that on of the best school districts in the state, the Mill Creek High School cluster actually has a Hoschton address.

The city itself, the capital and municipal buildings are located in Jackson. Downtown there is a very nice square complete with gourmet coffee shops and country cookin' restaurants. You'll find business people as well as locals meeting here for networking opportunities.

Back to Gwinnett County, All Homes for sale in Hoschton that are in the Gwinnett County side go to Mill Creek High School Cluster. This includes, Frank Osbourne and Duncan Creek Elementary.

Neighborhoods that are located in Hoschton that are also in Gwinnett County are:

• Trilogy Park (High 200's to 400's New and Resale Homes)
  
• Mulberry River Plantation (High 200's to 400's Mostly Resale, 1 New Home and 1 Lot Available)
  
• Chateau Forest (Mid 400's to High 800's This neighborhood is in Two Counties)
• StoneWater Creek (New Homes 600's to 800's)
  
• Sierrra Creek (New Homes 500's)
  
• The Gates of Braselton (New Homes Mid 400's)
• Mineral Springs Manor (New Homes 400's)
  
• Ashbury Park (New Homes 400's)
• Milcrest Manor (New Homes 300's)
  
• Holman Place (Resales High 100's to low 200's)
  
• Chimney Springs (Resales High 300's to low 400's)
• Hamilton Springs (Resales High 100's to low 200's)
• Brentwood Place (Resales High 100's to low 200's)

SOLD In 90 Days or Less In Gwinnett: FACT OR FICTION?

It's true, the latest absorption report for Gwinnett County places the average home for sale as SOLD in just about 83 days or so. 

The two toughest sectors of homes to sell are surprisingly the $120 to $140K range of homes for sale and the $200 to $300K homes.  This data reinforces my claim that previous first time home buyers are stuck renting (as they had no business buying homes a few years ago) and that the relocation buyers are still stuck in their state trying to move their home (most common buyer of the $200K to $300K range).

Another disturbing trend is that Gwinnett County has over 2 years of inventory of homes priced $250K and above.  YIKES! 

So while homes are selling, many more sit on the market.  The ones that do sell are in line with the regular selling cycle in the Atlanta Metro Area, the same cycle that has been alive for 5 plus years. 

Basically, a smaller percentage of homes are selling, but the ones that do sell do so in the first 90 days.

The good news is that the percentage of homes that are selling has increased to almost 15% of the top homes in terms of value (where condition meets price).

SEARCH ALL GWINNETT COUNTY HOMES 

Predator Posing As Realtor to Access Property

Almost as if on cue, our MLS sent out an e-mail blast alerting us to the following:

This happened over the last weekend in DeKalb County.

"I wanted to let you know that twice in two days two people have come by and lied, to get into the house. There was a man yesterday who did all the talking and a woman who did none. I was in the front yard and they approached trying to engage me in conversation by indicating he knew you, (the listing agent). He asked to go in the house. I asked if he was a REALTOR and he said yes and gave me some name rather quickly. I asked to see a card and he said it was in his car. I told him - as you had instructed me - that he would have to open the door using his REALTOR key. He said that too was in his car. I told him he would need to go get it. He got huffy and said that if I wasn't interested in showing the house then I must not want to sell it. He indicated that you (the listing agent) had sent him, which was surely a lie. I indicated again that he could not enter without a key and turned my back on him.

They left.

oday two men were shaking my front door. Not knocking. Not ringing the doorbell. They were seeing if they could force the door. I asked them what they were doing and they said they wanted to see the house. I asked if they are REALTORS. They said yes. I asked to see a card. They said no they had been sent by a REALTOR to see the house. I told them to come back with a REALTOR. And I shut the door.

I'm sure that many more desperate clients would fall for these tactics. I was a but frightened. I'm here alone and the situation was always two against one if I had let them in. This is scary stuff!"

So how do you protect yourself from predators:

1. If it's listed with a Realtor, then ALWAYS make the Realtor access the lockbox (assuming it's an electronic one and not one of those combo locks), this is not only for tracking and follow up for feedback but it's also gives the police a list to call (and they will call) in the event something happens. 
   
2. If you are home, ask for a business card.  Every agent has a business card. 
   
3. If they don't have their business card ask for their pocket license (In Georgia).  State law requires that we carry a small version of our license with us.
   

If you are selling on your own, please refer to this article about For Sale By Owner

This isn't meant to be a scare tactic, quite the opposite really.  Do a search and you'll find that there are many instances of attacks on Real Estate professional, people posing as Realtors or on For Sale By Owners / Open houses.  

New Atlanta Journal Ad Shows the Dangers of For Sale By Owner

As I was driving to my appointment this morning I heard a radio ad from the Atlanta Journal, Metro Atlanta's most read newspaper, about their home classified section.  I had just attended a presentation that told me that AJC's numbers were dropping in terms of readership and that their website was picking up, but was still not a destination. 

I'm sure this new ad campaign is designed to generate more traffic, and more advertisers.

What I thought was so great about the ad (wish I could get the ad for you) is that it perfectly describes what is my number one reason for NOT selling For Sale By Owner.  In the ad, a couple gets their home listed on the AJC Homefinder and has something very immediate happen.  The door bell rings... and rings  .... and rings.  What caught me by surprise is that this couple is depicted as being unprepared for the throng of buyers ready to see the home.  In one instance a stranger asks to use the bathroom. They have people peeking in through the back door and through helping themselves, while the husband has a "Gee Golly" response, the wife is frantic because the home is not clean.

This is the reason most For Sale By Owners don't do well, is that they are not accessible.  Furthermore, by not having a professional Realtor track and monitor who goes into and out of the home, you could easily just let someone in that needs nothing more than a bathroom break. 

So what happens if you place an ad with the AJC and you get THIS kind of response?  Here's some tips to keep you safe if you DON'T have professional help.

1. Ask if the person has a Realtor.  This is first, so we can get it out of the way.  If the person has a Realtor that usually means the person has some qualification to be able to purchase your home.   Afterall, who would want to drive around an unqualified person with gas prices this high.  You might consider asking them to come back with their Realtor if they say yes. If they do say, yes, make sure you get their Realtor's name as a pre-caution.
2. Ask for their Name, Contact number, and ID. - In this day we have people posing as police officers and meter readers.  It's best to be safe.  Do you really want someone in your home that can't provide an ID?
3. Ask how they are going to finance it.  Lack of a solid answer here should cause you to think about if it is worth your time. It might be worthwhile to team up with a mortgage professional to pre-screen those that say they haven't gotten pre-approved yet.
   
4. Qualify them, like a Realtor does.  Ask them where they are looking, what's their price range, what are they looking for?  These questions will help you evaluate what you are competing with.  Be sure to get a number, so you can follow up for feedback.   Ask them to be honest, especially if they aren't bringing you an offer. 

NetWORK like you mean it - As opposed to Net Eat - Ideas to help you Network

Networking isn’t as easy as just showing up to an event and handing out business cards. Networking is an art. It's not Net-eat, net-shove-business -cards, net-relax, it's netWORK. 

As president of the  Chateau Elan networking group, I've seen individuals of all ranges with varying ranges of success.  Here are 5 tips that I have found in the more successful networkers.

1. Wait for the right window of opportunity to share your information.
Show an interest in others first and then when the focus turns to you, share your business card and business goals. When someone walks in handing out business cards indiscriminately, it’s tantamount to “network spamming.”  In our networking group, we have a question, "How Can I help you with your business?"  As the person thinks, it in turn makes them want to ask you... about your business.

2. Networking is about looking for opportunities to give.
Anyone is capable of great networking through good listening and caring about others’ success. Furthermore, everyone has a wealth of resources to offer. If your first goal is to be a valuable resource to others, the networking karma will be returned many times over.

Furthermore, giving opportunities to others in a group setting gives you credibility and visibility.  Coincidentally, that should be your goal in a closed networking group - that is to build those two as fast as you can. 

3. Become adept at gathering information.
After you have built relationships with your contacts, it’s time to share your business needs. Be as specific as possible when asking for leads, referrals or information. Specific requests glean the best results. It’s also helpful to provide examples of how you have helped a client. Always acknowledge any kind of help you receive and ask how you can return the favor.  

Also be specific about your goals.  Ask for 3 referrals, or ask for a referral after certain events take place, like after a home purchase. 

4. Be Specific about what you want
A reference I use, is ask for the 1996 red honda civic. You have to be very specific or else people will not be able to access their mental database or their "reticular activator" in order to help you. 

If you've ever gone shopping for a car and thought that no one owned the car.  After you bought the vehicle you realized that everyone has the same car.  It's same principle. Jeff Pickering has a great explanation here.  

5. Find your comfort zone.
Networking is a contact sport, but you don't have to fear being "ran over."  Most reasonable people understand that you're there to get more business just like they are.  Re-read number 2.  The best ice-breakers are ones where you are asking questions about others.  Also, you can ask for advice on how you might communicate your needs more effectively - people love to give advice and in turn they are learning about your business. 

To reap the benefits of networking you must be a farmer.  That means not only having a giving heart and sowing seeds, but it also means nurturing the relationships (like tending the fields).  Remember, you can't get the fruit of your labor sometimes unless you wait for it!

Good Luck!      

Do you Blog Dangerously?

When I first started blogging I thought it was no different than what I used to do years ago, which was constantly update my webpage.  The whole thing involved ftp uploads and a wee bit of code, but it was fun and it kept the content fresh. 

Now that I'm a year into this, I see it's a bit different.  For one, there's a lot more people doing it now.  It's a wonderful way to share your voice with the world, to show them how real or not you are and how informative you can be.  I've been blessed with some wonderful feedback.

So what's so dangerous about sharing your opinion?  

Before I jump into the dangerous aspect of blogging, I would like to take a time out for our "left coast" readers.  See, I was fooled much like my liberal friends (hey, I'm just trying to be funny here) into thinking that Freedom of Speech, means Freedom from consequences.  It simply isn't the case.  Your job for instance, is a priviledge, not a right, so therefore anything you say can't be protected by that right, however after you get fired you are certainly welcome to continue stating whatever it was that got you fired... as long as it is factually true.   So in this conversation, I would say that your real estate license, or inspector license or whoever is reading this that is an "independent" contractor license could be easily removed if you say something a bit off.

The thought that most of you have right now if you are anything like me is that you want the whole world to know how great YOU are and how bad some of the situations we as Realtors get into.

The danger does not lie in losing your job, or the ability to do your job.  No, the danger lies in unnecessary lawsuits.  So you might wonder what guidelines you might follow in order to make sure your blog is safe.  

1. Never use actual names of companies, unless it's documented as fact or positive
2. Never write anything negative, unless it is documented as fact, even if it is true
3. Practice WWYBD, Like What Would Jesus Do, except now we're talking about Your Broker.  Would they get excited that you wrote something "edgy?"
4. When referencing particular events or deals, make sure your disclosing PUBLIC records, and not personal information without something signed! by the parties
5. When in doubt, don't post it, it isn't worth it.
   

Some of you might be wondering where this all came from.  Well, I am proud of the fact that I built my business on being brutally honest with my clients and that should come through in my writings.  This past year, three instances made me reconsider blogging.  

1. I had an instance where a client's earnest money was being delayed in being returned by a large builder.  I wrote a blog about it, got the earnest money back and my client felt like a king, but I also got threatened in some pretty devious ways.
   
2. I wrote something about the quality of workmanship in a particular neighborhood.  Later, I had the opportunity to meet with the CEO of the company (which could mean thousands of listings... yes, thousands).  Due to the blog, I couldn't tell him to Google me, which is one of my favorite things to tell prospective clients.
   
3. I blogged about a closed deal and my client didn't feel that the deal happened the way I blogged about.  Think, "Just Sold, Full Price" and the client thinks, "Gave the home away with all my furnishings."

So at the end of the day, it's not worth it to lose my livelihood for a good read.  To recap:

Document or get people to sign before you blog, and don't blog negative!  

Atlanta Real Estate Market - A Buyer's Market Yes, A Bad Market, ... ? You decide

As long as I have been in Atlanta Real Estate, it's always been a buyer's market.  Sure there were some streets and some neighborhoods that had a certain essence that people clamored for, but overall, as a buyer you could always expect concessions of some sort.

If you're a big fan of the media, you might want to click away right now, because I hate to break it to folks, but this is one of the best years ever for Real Estate.

Let's get right into the facts (all from our MLS).

 (Left: Centennial Olympic Park Fountain, By Hamwithcam)

Let's first look at Atlanta Homes that Sold In January & February (Just Single Family Detached)

• Worst Year this Millennium? 2000  - With barely 2,000 homes sold in Jan 00, and almost 3,000 in Feb 00
• Best Year this Millennium? 2006 & 2007 ?!?!?  - Yep, those are the numbers, Both years started at just under 4,000 homes sold in Atlanta, to just over 5,000 for Feb. of those months.
  
• How About 08?  Jan 08 saw about 2,500 Atlanta Homes sold, while Feb saw about 3,000 homes sold in Atlanta.
  

OK, so home sales are not that bad, but what about prices? Prices are down 10% according to CNN.  So again all the single family detached homes in Metro Atlanta are put out there for the millennium comparison. 

What is the average sales price in Atlanta.  Drum Roll!!! 

• Worst First Quarter Year of this Millennium? 2000 - DUH! With an average of $195K.
• Best Year? I'm tempted to put a spoiler alert here, but you might have guessed.... 2007 was the best year ever for average sales price of an Atlantan home.  At about $252K, you'd likely have some equity if you bought in Metro Atlanta.
  
• So how are we doing?  We're down. In 2008, we have about a 4% decrease from last year to $235K.
  

One thing the media did get right this year is Days On Market, let's take a look.  Again, we're only looking at the first quarter (minus March) for the millennium.

• Worst Year - 2008 - Just over 100 days on market.
  
• Best Year - 2000 - With about 65 Days on market for homes in Atlanta.
  

So at the end of the day, are we in a buye's market?, Yes.  Are we in a bad market? No.  It's a great time to move up and a great time to buy as always. 

What's especially nice is that the high octane Realtors out there are getting a lot more business because it takes more than just a sign and the MLS to sell a home!   

Till nextime....   

Watch Those Tax Assessment Notices! | Are You Ready To Dispute Your GA Tax Assessment?

I got a great e-mail from a client, Tim Smith, from Russel, Stell, Smith and Mattison, LLC, about assessments,

"Gwinnett is sending out 2008 notices of re-assessment.  This should cause a groundswell of opposition and appeals as they are using 2006-07 data in a still falling 2008 market.  For instance our home was $460K +/- for 2007; they’ve raised it to $506K for 2008---don’t I wish!

Anyway, if you’re looking for a topic to get folks to read the newsletter, a timely mention of the need to watch for those notices being mailed this week and only 30 days from the date of the notice (not when rec’d) to appeal should get their interest.  Not that you (or I for that matter) are appraisers who would stand to pick up substantial business from all the appeals that will come of this, but it would be a great reminder to all your recent purchasers or current listings to stay on top of this.

Even if they hadn’t raised my assessment I was going to challenge it because of the other nearby homes with substantially lower valuations."

I would hardly call the Metro Atlanta market a crisis area, but at the same time, during this mortgage mess it certainly doesn't help to have the tax assessors giving incorrect assessments.  You'd almost think the assessors are ex-Real Estate agents who used to overprice their listings!

If you're interested in the process of appealing your tax assessment click here.  

* NOTE *

For those folks that e-mailed, NO, the image in this blog is not Tim Smith's home.  This is what the tax assessor thinks of YOUR home! You can get more in Georgia, but not THAT much more. 

2990 Ivy Brook Lane, Buford, GA 30519 - The Estates At Ivy Creek - Just Listed!

Former Model Home w/ Theater Room! Possible Short Sale

Location: The Estates At Ivy Creek

FORMER MODEL HOME! GET ALL THE XTRAS, HUGE MASTER SUITE W/ SITTING AREA, VOLUMOUS FAMILY ROOM, INTRICATE DINING ROOM, KITCHEN TO DIE FOR, VIEWS KEEPING ROOM & BREAKFAST AREA, GRANITE TOPS & STAINLESS APPLIANCES. BASEMENT HAS FULL THEATER! FOR THE RIGHT PRICE, OWNER WILL LEAVE ALL THE THE EQUIPMENT!!

Too many upgrades to possibly mention, custom colors, hidden tv niches, extra millwork, trim.

This was a Wieland Executive's first build. As such it comes with trademark Wieland details on a grand scale.

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Joshua Jarvis

770-374-4667

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Pricing

Asking Price: $524,900

Flexibility: Negotiable

Additional Pricing Information: Possible Short Sale

Neighborhood Amenities: Tennis, Swimming Pool, Sidewalks, Street Lights, Cable, Internet

Property Location

2990 Ivy Brook Lane
Buford, GA 30519
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Features

Bedrooms: 6

Bathrooms: 4.5

Parking: 3

Year Built: 2003

Subdivision: The Estates At Ivy Cree

Lot Size: .28

Garage Size: 3 Car

School District: Ivy Creek

Square Footage: 5000

Agent Name: Joshua Jarvis

Broker: Keller Williams

MLS #: 3682889

Website: http://www.gahomedigest.com

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Appliances

Range/Oven

Full Refrigerator

Dishwasher

Microwave

Stainless Steel

Double Oven

Interior Amenities

Fireplace

Hardwood Floors

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Kitchen Island

Vaulted Ceilings

Basement

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Fenced Yard

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