Buyers and sellers of residential real estate need to be aware of some major changes in the way real estate transactions will take place in Georgia!  Members of the Georgia Association of Realtors commonly use pre-printed real estate forms/contracts to facilitate the buying/selling of Georgia Residential Real Estate on behalf of our clients.  Well, the forms committee has overhauled the 2008 contract and these changes will have a financial impact on the consumer (careful planning by well-educated realtors can minimize any impact).

First and foremost, buyers and sellers will want to make sure they are working with well educated Realtors so than can be assured that their real estate transaction takes place smoothly and with the fewest amount of headaches possible.   While problems that need to be overcome are fairly common in any real estate transaction, issues caused by an agent’s lack of education and knowledge relating to the contract changes is something that no one should have to deal with.

These changes are too numerous to list is one post but I will highlight one important change that has significant financial implications. The transfer tax on real property has been traditionally paid by the seller as dictated by all previous versions of the contract.  In 2008, the forms committee has decided to shift this tax to the buyer along with other costs relating the sale of residential real estate!

 
Posted by Matt Newman on 01/09/2008 02:26 PM   Comments (0)  

Not only are lower mortgage rates a great reason to buy now, buyers looking to purchase within the next 2-3 months could save big $$$ by closing on a home before the end of the year on their 2008 property tax bill.  In Georgia, you qualify for a HomeStead Exemption by owning and occupying a home on January 1st.  Your 2008 tax bill that comes due for many in the fall, will reflect this lower tax rate if you qualify and file within the required time frame (check with your county for details).  If you close January 2nd, you will have to wait until 2009 to get the exemption.  Depending on the value of the home, this could mean saving big money…we could be talking $100s per month on your tax payment!!! Another befit is that certain costs (mortgage points) could be deductible for your 2007 income taxes.  Be sure to consult your tax professional regarding these items!

In the meantime, start searching now at www.MattNewman.com for that home! There is still time to close before the end of the year but you better get moving…

 
Posted by Matt Newman on 12/02/2007 07:10 PM   Comments (0)   atlanta market, buying now, homestead exemption  

The real estate market has changed in Atlanta and we are in a buyer’s market. To refresh, a buyer’s market is when supply outnumbers the demand. This results in swelling numbers of homes for sale and possibly flat or falling prices. I am hearing from many people that they are waiting to purchase because they feel it is going to get worse before it is going to get better. I can understand this thought process but do we really know what the future holds? Putting off buying when it is a good time to buy is a bad idea. There is very often a lag in reporting on the real estate market. By the time the news media begins to report that the real estate market is improving, it will be too late. This is the danger in putting off the decision to purchase real estate in a buyer’s market. You can negotiate with leverage now but may not have that leverage come February or March. You will only know when we have reached the bottom when the bottom has passed us. Yes, you can wait until February but you could pay 50k more for that 400k house, is that something you are ok with?

Some things to consider if holding off purchasing in the Atlanta Market.

  1. Builders are not building more spec homes, each one that is sold a a deep discount removes one home from the supply. Most builders will not be starting SPEC home unless a buyer has already put a contract in to build that home.
  2. Buyers are out there now buying the homes that present the BEST value.
  3. If you wait until after Jan 1. to buy, you will have to wait an entire year to qualify for your Homestead Property Tax Exemption, thus increasing your tax burden.
  4. The Atlanta Economy Remains Strong with Population Growth Continuing.

All of the fundamentals point to a rebound in Atlanta’s Real Estate Market.  Will it be early 2008, mid-2008 or late 2008?  I do not know and neither do you, but I can tell you that Atlanta is in the middle of a down market unlike any previously seen! Why not take advantage of it?  Think about the last time you tried to time the bottom of the stock?  Very hard to do if not impossible!

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Prudential GA Realty is holding another "Super Sunday" this Sunday in the Atlanta Market where hundreds of listings will be held open.  According to top experts, now is a great time to buy real estate in Atlanta.  Buy low and sell high is how that saying goes...  Check out these reports from Dan Forsman, CEO of Prudential GA Realty.

I will be holding several listings in Peachtree Place Condos open from 1 to 5! Please visit www.PeachtreePlace.Info for more details...

 

 
Posted by Matt Newman on 11/08/2007 07:57 AM   Comments (0)   open houses, prudential georgia realty, listings  

As a Realtor, I am obligated to present all possible known risks to my clients about their potential purchase.  While new home builders are ramping up the noise with special weekend blow-outs, expensive free upgrades, and just about every other incentive you can think of, we need to make sure they look at the big picture and not get caught up in the now. 

Most recently, Levitt and Sons announced a halt in building as they look to reorganize some debt and find more money to continue building.  It is possible that the well has run dry and lenders will not lend them more money to continue.  With several large active adult projects ongoing here in Georgia and some at the very early stages, the risks are huge for folks who have already purchased and for those presently under contract.  For one, what if your common amenities are never built?  What if another builder does not step in? What if the next builder builds cheaper homes? The risks are countless...  Do you think the on-site agents representing the builders are informing buyers about these risks? Of course not, they are not obligated to.

I would present the above questions to anyone of my clients thinking about purchasing new construction in this market.  The fact is, most buyers don't have a Realtor ever represent them in the purchase when buying new.  This is a huge mistake and one that may have just cost some a large portion of their nest egg. Remember, the overly friendly guy or gal in the trailer is not there to look out for your best interest.
 

I think the perception of short sales is that the bank is just going to forgive the remaining debt and let a homeowner go on their merry way once the sale closes.  They are far more complicated and homeowners need to truly understand what the outcome will be.  Remember, a short sale is usually only approved for someone that has no other way to avoid foreclosure!  

I have been working with very patient buyers who were set to close today on a short sale.  After a tremendous amount of work by everyone involved, the seller is not comfortable signing the document from the lender authorizing the short pay because it states that the remaining debt will be sent to their collection department.  The bottom line is that no homeowner is ever going to walk away without paying for what was borrowed in some form, let alone get a lender to put that in writing.  This seller has several options, she can sign and never repay the now unsecured debt.  The seller can go into foreclosure and let the deficit grow 5x and have the court file a judgment against when all is said and done.  Bottom line, I don't care how it is handled but this short sale is the best option to limit the remaining debt for sure.  

All I can think about is my poor buyers who are making their first purchase.  What could have been done to avoid this situation? What I have learned is that a homeowner facing a short sale needs to understand what the implications will be on the credit and with the unpaid debt.  In this case, I only represented the buyer so I do not know what information was given to the seller by the seller's agent.  Had I represented the seller, I would have made sure that an attorney and an accountant were consulted and that the seller understood the consequences before I invested my time in marketing a property and negotiating with the bank for a short sale.


 

  

 
Posted by Matt Newman on 10/19/2007 11:48 AM   Comments (0)   short sale, foreclosure, lender  

I know that I already posted all my tech tools to share with other ActiveRain agents but I forgot to add my latest addition.  The WIRELESS HEADSET from Hello Direct!  I always thought that agents who wore headsets around the office looked funny but I really think it will encourage me to prospect and be on the phone more!  I must say that the headset arrived this afternoon after ordering from an online retailer and I have already made several expired calls.  Agents think that I spend too much time on technology but if it helps me make more money and get more deals, then it is well worth the investment.  Sometimes I need to play with new tools in order to get a renewed motivation to return the basics of prospecting for business!

  

 
Posted by Matt Newman on 09/20/2007 03:22 PM   Comments (0)  

X61I am posting this blog from my new Lenovo tablet PC X61. This is my latest tech addition and it is one piece of technology that I have not seen many agents in my market utilize. The benefits of this computer are too numerous to list in one post.  I decided to add this primarily for prospecting purposes. It will allow me to go door knocking and have access to data while out in the field. It will also allow me to access data while out in the field with clients. The most interesting part of carrying this piece of technology are the reactions that I get from other agents and my clients.

 A Few Specs:

  • Vista ultimate
  • 2 GB Ram
  • Cingular Broadband
  • 80 GB
Check out NAR for discounts on Lenovo Products!
 
Posted by Matt Newman on 09/19/2007 10:38 PM   Comments (4)   x61, tablet, laptop, computers  
Blogging is nothing new to me.  I have been blogging for several years and have even had one of my blog sites featured on national tv.  The thing is that I have been so busy in Real Estate that I have stopped blogging all together.  I am now making it a priority to regularly blog on Atlanta Real Estate.  While I plan to post entries here on Active Rain, I am going to be focusing much of my efforts on my newly launched Atlanta Real Estate Blog (http://atlanta.featuredblog.com/).  Please stop by and bookmark this site or add the RSS feed!  Again, thank you for your interest and I look forward to posting more....
 
Posted by Matt Newman on 09/08/2007 06:19 PM   Comments (0)   atlanta real estate blog  

www.mattnewman.com/realestate

This is my place on the web where I post articles relating to Atlanta Area Real Estate.  Please take some time to surf over and check it out. Keep up with the lastest on mortgage rates and news related to Atlanta Real Estate.  You can also link back to my home page where you can search listings across Atlanta using my easy-to-use search engine.  You can even plot the listings on a map...and all this with no fees or sign-up required!

 
Posted by Matt Newman on 07/24/2006 11:16 PM   Comments (2)  
 
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Matt Newman

Johns Creek, GA

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Prudential Georgia Realty

Office Phone: (404) 372-8462

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