Fitzgerald Realty Blog

Charming bungalow near Atlantic Station $225,000

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 29 Apr 2010 14:21:03 -0700

Mike Fitzgerald | Fitzgerald Realty, Inc | (404) 478-9859

775 Berkeley Ave, Atlanta, GA

Newly renovated, level fenced backyard, full basement, pine hardwoods, garage and carport, very large bathroom.

2BR/1BA Single Family House

offered at $225,000

Year Built	1940
Sq Footage	950
Bedrooms	2
Bathrooms	1 full, 0 partial
Floors	1
Parking	2 Covered spaces
Lot Size	59,928 sqft
HOA/Maint	$0 per month

DESCRIPTION

2 Bed, 1 Bath Bungalow with new energy efficient windows and doors, professional painting, and renovated oversized bathroom. Full basement, hardwood pine floors throughout, level and fenced backyard with garage, carport and storage shed. Claw-foot tub, stone tile, and double sinks in bathroom.

see additional photos below

PROPERTY FEATURES

- Central A/C	- Central heat	- Hardwood floor
- Family room	- Refrigerator	- Stove/Oven
- Microwave	- Basement	- Laundry area - inside
- Yard

COMMUNITY FEATURES

- Garage parking

- Covered parking

ADDITIONAL PHOTOS

Level front yard, carport	Pine hardwoods throughout
Professional paint and ne	Solid Surface Counters an
Double sinks in renovated	level fenced back yard wi

Contact info:

Mike Fitzgerald

Fitzgerald Realty, Inc

GA Lic# 251212

(404) 478-9859

For sale by individual owner

Equal Opportunity Housing

Posted: Apr 20, 2010, 2:00pm PDT

Why Won’t Banks Lower Their List Prices?

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Wed, 28 Apr 2010 16:11:16 -0700

Ask any land appraiser in town and you’ll hear the same story. Land sales comparables are virtually non-existent over the past 18 months. That is starting to change based on my personal appointment book for Closings and word of mouth from other brokers about deals that are pending sale in the near future.

Now that we are seeing actual sales hit the books, the million dollar question is, “Will the banks cut their list prices?” The answer is probably, “Yes, but not by very much.” The reason for this has to do with the vagaries of the accounting practices banks are required to follow.

Banks tend to hold asking prices at levels equal to their book value for their assets. If a bank were to wholesale reduce prices on their assets, they would inevitably be required to reduce the book value on those same assets and tally a paper loss without actually receiving the benefits of a sale: namely cash.

Land buyers are undergoing a re-education process not seen since the FTC days some 20 years ago. The emerging consensus is that list prices are not going much lower, but the deals will got to those willing to make offers -- and lots of them.

Land and lots are a specialized subset of real estate requiring a great deal of upfront time and expense in order to understand each property before crafting an offer. Many are unwilling to put in this time and effort unless they are fairly certain the asset may be acquired on the cheap – buyers have largely relied on published list prices as the main indicator of a seller’s motivation to sell at or below current market prices. Since those list prices have remained high, we haven’t seen many shoppers.

The rise of sealed bid sales of late is a strong indicator that banks are willing to deal at market prices. These events allow banks the luxury of leaving published list prices high while encouraging buyers (with a wink and a nod) to submit lower than asking price bids for serious consideration. The downside for buyers is there’s still no guarantee the property will sell even if a large number of bidders participate.

The option of last resort for banks will be absolute auctions where the property is sold regardless of price. I like to call this the “nuclear option.” So far, most banks have been unwilling to resort to this extreme option because of the lack of control over price on their part. When you start to see a large number of absolute land auctions (and better yet ones with non-qualifying owner financing), you’ll know the land market has hit rock bottom.

However sealed bid events are bringing more land buyers back into the market and if the technique starts to yield sales activity, we may never get to the “nuclear option.” If you are serious about investing in land while prices are at record lows, you would be well served to start submitting bids on sealed bid events before this opportunity passes. Click here to register for specific land and lot offerings in the FDIC sealed bid event that closes May 12, 2010.

When is it Time to Throw in the Towel on Financed Land?

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 13 Apr 2010 09:07:54 -0700

NOTE: I am not an attorney and this article merely relates different strategies I have seen friends and customers try when faced with land that is worth less than the amount borrowed against it. Please visit our Professional Resources page to find an attorney that knows far more about these issues than I do. The goal of this article is to give landowners some frame of reference to engage in dialogue with their lender before the situation becomes desperate.

I hear the same story all too often about land developers and builders who hold on until the very end trying to make payments on raw land or developed subdivisions until all their money is gone. Land speculation and development is very different from other forms of real estate investment because there is no possibility of income until the very end of the investment cycle when the property is sold. Unlike houses, apartments, office buildings, warehouses, or retail stores, it is next to impossible to derive lease income from land and lots. When the market for land evaporates as it has done in the last 12-18 months in Metro Atlanta, the land owners have no way to generate cash from their holdings. Many have tried to find work, but there aren't many vacancies in the two industries hit hardest by the Great Recession in Atlanta: Construction and Real Estate. To complicate matters, the loan payments must still be paid on a regular schedule.

So what is a land owner to do in this current environment? One option is to continue making loan payments until all resources are depleted and then turn over the property by a process known as deed-in-lieu foreclosure and file bankruptcy. Another option is to stop making loan payments, lose the property by foreclosure and then defend a lawsuit filed by the bank for their loss on the deal. Neither of these options seems very attractive to the land owner. Relocating to Belize might be somewhat more attractive.

A third option is a short sale - yes these work for land too. A short sale is when the bank agrees to release the lien on the real estate for a payment that is "short" of the amount due on the loan. There are two types of short sales - recourse and non-recourse. In a recourse short sale the bank does not forgive the remaining debt and may pursue the borrower to collect that debt just as if the bank foreclosed on the property. There are two benefits to a recourse short sale: 1) the borrower won't have a foreclosure on his record and 2) the borrower has some control over the selling price of the land. In a foreclosure situation, the bank takes the property back in at their most current appraised amount and that's the number they use as a basis for the deficiency lawsuit.

The non-recourse short sale is the best option for the land owner - in this arrangement, the lender and land owner work together to market and sell the property at a price they can both live with. The borrower then agrees to pay some portion (or in some cases none) of the deficiency between the selling price and the loan balance. The bank in turn agrees to forgive the unpaid balance and will not pursue the borrower for this amount in the future. There are two disadvantages to the borrower however: 1) The bank will send the borrower a 1099 for the forgiven debt and the borrower may have to pay income tax and 2) the borrower may have a notation on his credit report that says that the loan was satisfied for less than the amount owed.

Will the FDIC Have to Give Lots Away?

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 16 Feb 2010 09:54:48 -0800

I get calls all the time from private equity investment funds looking to purchase notes on residential subdivisions. I also list my fair share of FDIC and bank-owned developed lots and raw land. As I go about the business of trying to sell this "dirt," I've noticed some troubling trends. The first sign of trouble began in 2008 when the deal activity started to fall noticeably and we attributed it to the bid-ask gap meaning that there was too large a difference between what buyers would pay and what sellers would take. Then we saw sellers slowly reduce their asking prices and the conventional wisdom was that seller's would eventually reduce their price to the buyer's bid and the market would hit a bottom and deal activity would resume. The incredibily frustrating thing is that so far the bid-ask spread has remained pretty much the same percentage wise even though sellers continue to drop their asking prices. Most offers come in at between 30 and 50 cents on the asking price for raw land and lots.

Now this means there aren't too many deals being done in the land business right now. The main exception has been with several notable funds who have picked up a number of developed lots over the past 2 years from some of the larger Georgia and national banks willing and capable of selling their foreclosed land and lots at whatever price the market will bring.

The rest of the market activity in vacant land and lots amounts to a lot of talk. That brings me back to the conversation I had with an equity fund out of Michigan last week. They were considering buying a loan on a 150 lot subdivision in Fairburn. All improvements are complete including the top coat of asphalt. The note is non-performing and would need to be foreclosed upon and any back taxes brought current. The cost to foreclose and clear any tax liens together with what the investors pay the bank would be their total initial investment.

Since developed lots don't produce a revenue stream, the key to determining the investor's ROI is to accurately predict two things: holding time and exit price. That's what the fund analysts want to know when they call me. I usually throw out some recent transactions to show worst case exit pricing and then give them a "your guess is as good as mine" on the time required to hold the property. Most are budgeting 4-6 years right now.

The problem I've had recently is that I cannot even give a good exit pricing estimate because deal activity is almost non-existent and listings that I have at under $10,000 a developed lot are not getting any offers in less desirable markets. In the better markets along the northern suburban corridors, deals are still happening albeit at a snail's pace - but on the south, east and west sides of Atlanta, activity is at a dead stop.

So the $64,000 question is, "What are these lots worth in less desirable markets." I heard one pundit on cable news say that a good portion of the developed lots in the current inventory never should have been developed and will never be built on. I wouldn't go that far - I expect almost all of the developed lots to be built on at some point. For some lots, the hold may be much longer than most investors are willing to wait.

Let's assume a market will exist for lots in less desirable markets in 5-6 years. Let's assume the taxes are $400 per lot annually and the cost to mow the grass and maintain the detention pond is another $200 per lot annually. Without factoring in the cost of money, inflation, etc. - the lots would cost $3,600 to hold. Add to that the cost to foreclose and pay off back taxes and we can reasonably assume our investment in each lot would be around $5,000. Most of the investors I speak with are looking for pro forma returns of 25% annually.

A six year simple return would require the lots to sell voer $12,500 each in 6 years. In my opinion that's a best case scenario - what if the market doesn't return for 12 years - at that time the lots would need to sell for $20,000 to accomplish the same 25% annual simple return on investment. When demand returns for lots in these less desirable markets, I strongly believe the lots could go for $15,000 - $20,000 each.

There's one major flaw with my analysis. I'm assuming today's investors pick up the lots for free. Is that the only price that will get these lots moving?

New Study: Residential Lots in Atlanta worth $8,000 Each

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 15 Dec 2009 00:15:23 -0800

The Lincoln Institute of Land Policy publishes Land Prices for 46 Metro Areas in the US with quarterly data from the 4th quarter of 1984 to the 1st quarter of 2009. The graph below shows quarterly lot values for the Atlanta metropolitan area. Residential Lot Values in Metro Atlanta
The Lincoln Land Policy data takes a different approach to surveying residential lot values than the other two major research providers in the Atlanta market. Since lots rarely change hands in built-up areas, it is difficult to ascertain lot values from direct sales.

Instead Lincoln takes home resale prices and backs out the construction cost to arrive at the value of the underlying lot. Metrostudy and Smartnumbers rely on actual residential lot sales to reveal lot values. The problem with this market based approach is that it only reflects the sales of vacant lots in new subdivisions that are most frequently located in outlying areas of the Atlanta metropolitan area. The Lincoln Land Policy data is not intended to establish market comparables for actual residential lot sales. Instead it can be used as a gauge of the market feasibility for new housing starts at any given time.

For most of the history of the study, the residential lot “share” fluctuated within a quarter to a third of the value of the house sale price (house plus lot) as shown in the graph below. Lot Value as a Percentage of total House Value (Lot plus House)

Even during the housing boom of the last decade, we did not see the lot share deviate from the established range. I remember when shopping for developed lots, most tract builders would try to purchase lots at 20-25% of the finished home selling price. We saw lots for move-up and high end homes in the 25-50% range.

The current lot share value is 5% of the home selling price. So if the average lot is worth $8,000 and the lot share is 5%, then the average home selling price would be roughly $160,000. It’s fairly easy to see that if the average home price declines an additional $8,000, the value of the lot will go to zero.

What does this mean for home builders?

* It becomes very difficult to compete with resale homes when the average home price is roughly equal to the new home construction cost. The builder needs to basically get the lot for free in order to compete.
* Construction costs will need to decline by decreasing square footage and finish levels in new homes to bring the lot share back in line with historical trends.
* Builders will pass along the cheaper lot prices to the buyers through lower new home selling prices in order to stay competitive with resale homes.
* Since it is not possible to deliver new lots at $8,000 each or less, new homes can only compete with resales if the builders purchase distressed lots at depressed prices. Most new homes in the next couple of years will be built on foreclosed lots. * Builders must be extremely selective in determining the price to pay for lots and the location to build.

Reference: Davis, Morris A. and Michael G. Palumbo, 2007, “The Price of Residential Land in Large US Cities,” Journal of Urban Economics, vol. 63 (1), p. 352-384; data located at Land and Property Values in the U.S., Lincoln Institute of Land Policy http://www.lincolninst.edu/resources/

How many appraiser calls a day is normal in this market?

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 08 Dec 2009 22:53:51 -0800

I got three calls today from real estate appraisers. Now that's a high number -- I usually average about one call a day but these calls were interesting in that the appraisers were not calling to verify specific sales comps from transactions that I brokered. These appraisers were calling to inquire with me to see if I knew of any comps at all for land sales in Henry, Clayton and South Fulton Counties.

Now I suspect the recent uptick in appraisal activity has to do with the 4th quarter and for that matter the year coming to an end. The problem is that the land market has been at a standstill for so long, the sales transactions of record are now too old to use in appraisals. Most appraisers don't want to use sales that occured more than 12 or 18 months ago. Some counties don't have a single transaction in this timeline and about half of the transactions that I've reviewed are not arms length sales -- they are deed in lieu transactions or transactions between related parties.

Unfortunately, those ordering these appraisals -- the banks who have foreclosed on land and subdivisions -- are quickly finding out that the only way to truly know the value of their property is to sell it. Appriasers use three approaches in valuing real estate: replacement cost, income approach and market comparables. The first approach does not apply to land since land cannot be "replaced." The second approach very rarely applies to land since most land in northern Georgia produces no income in its undeveloped state.

When no comparable transactions exist, the only way to know the value of land is to make the market by accepting offers for properties that have received reasonable market exposure. Once this starts to happen, we may start to see land trade hands again after over a year of almost no activity.

Treasurey Dept announces new Home Affordable Foreclosure Alternatives (HAFA) program

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Mon, 07 Dec 2009 13:43:41 -0800

Add another acronym to the alphabet soup of programs for homeowners facing foreclosure. The Treasury Department rolled out its new HAFA program (Home Affordable Foreclosure Alternatives) on November 30th. This program is a last resort for borrowers unable to make payments, sell their property or refinance their loan. The HAFA program seeks to address many of the complaints surrounding short sales and deed in lieu of foreclosure transations.

Any agent that has worked a short sale, can attest to the difficulty and senseless time wasting involved in a short sale. The first problem is there is no accepted process to obtain a bank’s consent to a short sale prior to listing the home for sale. So homeowners and agents are forced to list the property without knowing whether or not the bank will approve the sale at the listed price. Many banks will only begin to speak with a borrower about a short sale when a written offer for the house is received.

The best way to generate an offer quickly is to list the price for an absurdly low price. The listing broker and seller use the first offer to find out what the bank would actually accept short of the loan payoff. Unfortunately, the prospective buyer and buyer’s agent unknowingly provide a valuable service for the seller but waste their own time and energy in the process since the list price on the house was never in the acceptable range for the lender.

Once the lender gives some guidance as to the price they would accept, the homeowner adjusts the list price to a more realistic number. The next offer has a much better chance, but not before the bank attempts to squeeze the real estate agents out of the deal by making him accept a lower than market commission rate as a condition of approval of the short sale agreement.

The Making Home Affordable initiative sent out an email today describing the HAFA program and the ways in which it would address the current concerns with short sales:

The HAFA program simplifies and encourages short sale and DIL (deed in lieu) options by:

Offering eligible borrowers viable alternatives to avoid foreclosure;

Providing a standardized process and time frames for handling viable alternatives;

Allowing pre-approved short sale terms before a property is listed;

Preventing servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval;

Releasing borrowers from future liability for the debt; and

Providing financial incentives to borrowers, servicers and investors.

Borrowers should be (or request to be) considered for a Home Affordable Modification Program (HAMP) modification and other retention programs before being considered for HAFA.

There are sample documents on the program website including a sample short sale agreement, request for approval of short sale, alternative request for approval of short sale, and deed-in-lieu of foreclosure agreement.

Home Buyer Tax Credit Extended -- Not Just for 1st Timers This Time

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 24 Nov 2009 00:11:59 -0800

On November 9, President Obama signed an extension of the Home Buyer tax credit as part of a $24 billion economic stimulus bill that will also extend unemployment benefits. The tax credit applies to new and resale homes.

There are some significant changes to the tax credit that was due to expire at the end of this month. Namely, the new tax credit is for first time home buyers (anyone who has not owned a home in the previous 3 years) who purchase a home by April 30, 2010 or by June 30, 2010 when a binding purchase agreement was in place by April 30, 2010.

The tax credit is equal to 10% of the purchase price up to a maximum of $8,000 and is refundable meaning you can get the money back even if your tax bill is less than the amount of the tax credit. The income limits were increased to an Modified Adjusted Gross Income (MAGI) of $125,000 for individuals or $225,000 for joint filers. The credit phases out by 10% by every $2,000 you make over these limits. The law allows some flexibility as to the tax year you use to calculate your MAGI.

The tax credit is only good for purchases under $800,000, but it does apply to all types of homes including detached houses, townhomes, condos, manufactured homes, and houseboats. The home must meet the definition of a primary residence used to determine the $250,000/$500,000 capital gains exemption. You can also apply the tax credit to a home you build on land that you already own.

Repeat Home Buyer Tax Credit

There’s also a new twist that provides a tax credit to repeat buyers defined as those who have lived in their current primary residence during 5 of the 8 years directly before the sale. The tax credit is equal to 10% of the Purchase Price up to $6,500. Otherwise, the same guidelines as the $8,000 New Home Buyer tax credit apply to the Repeat Home Buyer Tax Credit.

You may be able to access your tax credit before you file your next return by reducing your federal income tax withholding. For FHA-insured mortgages, HUD is also allowing the tax credit to be monetized at closing to pay certain down-payment and closing expenses. Non-profits and FHA lenders may extend short term loans of up to $8,000 to monetize the tax credit at closing. In some cases these short term loans may qualify to meet the FHA’s 3.5% down-payment requirement.

Check with your financial adviser if you believe you qualify — more information is available at http://www.federalhousingtaxcredit.com/.

Small Business Tools Suggestions compiled by Mike Fitzgerald (Mike@FitzgeraldLand.com)

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Mon, 09 Nov 2009 22:37:55 -0800

Onebox.com
Virtual PBX system lets you have a professional business telephone service for a low monthly fee. "Follow-me" technology rings multiple phones at once and voicemail messages are delivered to your email inbox as a .WAV file.
ArchTelecom.com
Voice and Fax on Demand service. We use this service to provide recorded messages and fax infromation packages on each of our listings. The service even sends a letter to all callers from the previous week if they called from a land line.
Elance.com
I like to call this one Ebay for contract design work. Find graphic artists, technical writers, web designers, and more from all over the world. Just post your project and get bids right away; you won't believe the prices. We found the vendor who redesigned our website using this service.
iPrint.com, VistaPrint.com, Click2Mail.com
Affordable printing for business cards, letterhead, postcards, etc. The latter two also offer direct mail fulfillment. You simply upload the document and the mailing list and they print, stamp, and mail your mass marketing pieces.
PressEx
Dirt cheap prices on glossy brochures, self mailers, and postcards. I recently found an even cheaper vendor for a self-mailer, but the order is in process and I can't vouch for the quality yet.

FitzgeraldLand.com Website Gets a FaceLift

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Fri, 11 Sep 2009 17:54:31 -0700

Take a moment to check out our improved website at http://www.FitzgeraldLand.com . We have 2 new bank foreclosed subdivisions listed. The direct links are:

http://fitzgeraldland.com/detail.php?fatherID=42&TypeID=48&ListingID=59

and

http://fitzgeraldland.com/detail.php?fatherID=42&TypeID=48&ListingID=58

All New Bank-Owned Foreclosed Land Listings

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Fri, 24 Jul 2009 11:01:40 -0700

July 2009 NEW BANK OWNED LISTINGS
Monday, July 27, 2009

20 Developed Lots $209,000.00	Offering 20 Developed Lots in Phase 1 of Bear Creek Subdivision (Out of 124 Total Lots). Water, Sewer, Natural Gas, Underground Power and Telephone Installed. The Curb, Gutter and Roads are installed as well as the detention pond. Good Erosion control measures in place. No houses were started in this development, but new homes would most likely sell in the mid $100,000 price range on slab foundations. All lots are level and cleared with planted grass for erosion control. Lots Average 5,000SF with ample common area green space. Located in the popular Chattahoochee Hill Country Community of South Fulton County.
24.886 +/- Acres zoned R-3 in Henry County on Hwy 42 platted for 65 residential lots. Site is cleared and rough graded with retaining walls in place. Sewer and Water appear to be installed. Gravel Driveway and decel lanes on Hwy 42 installed for both entrances. Site includes 6.235 +/- Acres of greenspace. Commercial outparcels not included with sale and right of way yet to be dedicated is not included in acreage total.	65 Partially Developed Lots $819,500
3.29 Pad Ready Commercial $330,000	Zoned C-2 Commercial just off Exit 222 of I-75 (Jodeco Rd). Commercial Driveway installed to access this 3.29 +/-acre pad ready site located behind two new office/retail developments. Site is cleared and pad graded. Great Single User Site for Medical, Automotive, or expand on the office/retail development in front of the property. All new construction in the area with great access to signalized intersection on I-75. Many light industrial uses allowed under current zoning
Great deal on bank owned foreclosed lots in upscale infill Lynwood Park Neighborhood. New Construction on both sides, rough graded with all utilities. Unincorporated Dekalb County close to Brookhaven and North Buckhead	Residential Lots Near Brookhaven $125,000 Each
Quarter Acre Commercial Lot $348,000	Rare intown quarter acre lot. measures 80x125 ft. Zoned C-1. Located in infill Lynwood Park neighborhood just north of Brookhaven. One lot from corner of Windsor Parkway and Osborne Rd. Could be split into two lots

33 Raw Lots $247,500	Lender owned platted subdivision in the City of Atlanta. 33 lots with slightly rolling topography. Great investment inside the perimeter on 15.2 +/- acres. All utlities available at site. Located on the MARTA bus line. Complete new subdivision across the street with beautiful homes just sold out.

Our mailing address is:
1465 Northside Dr, Ste 221, Atlanta, GA 30318

Our telephone:
(404) 603-5460

Copyright (C) 2009 Mike Fitzgerald Realty, Inc. All rights reserved.

Small Business Tools

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Fri, 19 Jun 2009 09:28:04 -0700

Small Business Tools
Suggestions compiled by Mike Fitzgerald (Mike@FitzgeraldLand.com)
Onebox.com
Virtual PBX system lets you have a professional business telephone service for a low monthly fee. "Follow-me" technology rings multiple phones at once and voicemail messages are delivered to your email inbox as a .WAV file.
ArchTelecom.com
Voice and Fax on Demand service. We use this service to provide recorded messages and fax infromation packages on each of our listings. The service even sends a letter to all callers from the previous week if they called from a land line.
Elance.com
I like to call this one Ebay for contract design work. Find graphic artists, technical writers, web designers, and more from all over the world. Just post your project and get bids right away; you won't believe the prices. We found the vendor who redesigned our website using this service.
iPrint.com, VistaPrint.com, Click2Mail.com
Affordable printing for business cards, letterhead, postcards, etc. The latter two also offer direct mail fulfillment. You simply upload the document and the mailing list and they print, stamp, and mail your mass marketing pieces.
PressEx
Dirt cheap prices on glossy brochures, self mailers, and postcards. I recently found an even cheaper vendor for a self-mailer, but the order is in process and I can't vouch for the quality yet.

Fitzgerald Relaty Brokers Sublease for Atlanta Based Agentware

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Tue, 16 Jun 2009 11:22:50 -0700

Fitzgerald Realty Brokers AgentWare 4,300 SF Sub-Lease in Ravinia Three Building

Atlanta, GA- AgentWare, Inc. (www.agentware.net) , an Atlanta-based private company that develops software solutions for the travel industry, announced it is moving into the Three Ravinia building in the Perimeter office submarket. The company signed a five year sublease with Core Projects and Technology Inc. and is expected to move into the space later this month. AgentWare's innovative solutions are used by travel professions throughout the world and having its' company headquarters in Atlanta has proven to be advantageous in conducting business.

The deal was negotiated by David McGrail and Mike Fitzgerald of Fitzgerald Land and Commercial Realty (www.Fitzgeraldland.com) in Atlanta representing AgentWare and John Grim of MetroBroker GMAC ( www.metrobrokers.com) representing Core Projects.

AgentWare CEO Gary Lagarde thanked the staff of Fitzgerald Land for its help in brokering the deal-

"Fitzgerald Land worked with us throughout the long process of identifying and securing our new office space. The company was an incredible resource to me and my staff as we evaluated properties and the economics of various locations throughout the city. I can't say enough about their professionalism, experience, and keen insight about the changing Atlanta Commercial market and would recommend them to anyone looking to take advantage of the current office opportunities. They made the time-consuming challenge of relocation much easier. We are very satisfied with our move to Three Ravinia."

Three Ravinia Drive, a 31-story, 820,000-square-foot office building, is prominently located within the Ravinia complex in DeKalb County. Completed in 1991, Three Ravinia Drive shares the 42-wooded-acre Ravinia Office Park with the 500-room Crowne Plaza Ravinia Hotel, which features functional and energy-efficient 25,000-square-foot floor plates, a full complement of amenities, a tropical conservatory, covered parking, and convenient access to both the Dunwoody MARTA rapid rail system and Perimeter Mall.

Details

What: 4,353 SF Sublease in the Three Ravinia building, Atlanta, Ga

Who: Agentware represented by David McGrail and Mike Fitzgerald of Fitzgerald Land and Commercial Realty. Core Projects and Technology Inc. represented by John Grim of MetroBrokers GMAC

Where: Three Ravinia Drive Suite 1930 ,Atlanta, Georgia 30346Contact: Mike Fitzgerald, mike@fitzgeraldland.com, 404-603-5460 ext. 1

Fitzgerald Realty Launches New and Improved Website

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Wed, 20 May 2009 12:46:01 -0700

In keeping up with the pace of technology Fitzgerald Realty Inc announced the launch of its newly updated website. The website is considered to be very user friendly and makes use of popular features such as videos and virtual tours of properties listed by its agents. Some other popular features of the website include; a newsletter sign up to keep clients up-to-date on the ever changing real estate market, news reports,and a featured agent of the month.

source: FPR

visit the new site at www.FitzgeraldLand.com today for more information.

Fitzgerald Realty Inc.was founded in 2004 by Mike Fitzgerald;a graduate of MIT, who saw the need for a land focused brokerage in the Atlanta Metro Area. Mr. Fitzgerald has always had ties to land in the state of Georgia as both his Father and Grandfather bought and sold land in the state for over fifty years.

Please feel free to contact an agent today at 404-603-5460 or stop by the Northside Summit Office Building at 1465 Northside Dr. Suite 220-C, Atlanta,GA 30318

Georgia Homebuyer $14000 Down Payment Assistance Program

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 14 May 2009 13:04:09 -0700

Georgia Dream NSP Program
$14,000 Interest Free 2nd Mortgage on foreclosed homes
"The Georgia Dream NSP Purchase Program was created to encourage the purchase of foreclosed properties. Funds utilized are an allocation of federal dollars received by the Department of Community Affairs from the Housing and Economic Recovery Act of 2008." "The program provides $14,000 to eligible borrowers purchasing foreclosed properties in eligible areas. Funds are disbursed in the form of a second mortgage lien with no interest and no monthly payments. The lien is released over a period of five years and six months. Funds may be used for required repairs and/or down payment assistance. This program begins April 1, 2009 and all funds must be disbursed by June 30, 2010." More information available at Georgia Department of Community Affairs

FDIC Loan Sales and Bank Failures

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 14 May 2009 13:01:56 -0700

Collected from Loopnet.com and AJC.com reports
So far ten banks have failed in Georgia and the FDIC is selling off their loans through two approved loan brokers. Debtx.com is the approved loan seller for east coast including Georgia. According to crenews.com, the FDIC has sold $1.2 billion in commercial mortgages at roughly 62 cents on the dollar. $702 million of those loans were classified as performing and sold for 79 cents on the dollar. While $304 million in non-performing loans sold for 33 cents on the dollar. The subperforming loans sold for 46 cents on the dollar.

The FDIC is also selling some assets directly through CB Richard Ellis and Prescient Assset Management. The banks that have failed so far in Georgia so far are: American Southern Bank (Kennesaw) April 24: $112 million Omin National Bank (Atlanta) March 27: $956 million FirstCityBank (Stockbridge) March 20: $297 million Freedom Bank of Georgia (Commerce) March 6: $173 million FirstBank Financial Services (McDonough) Feb 6: $337 million Haven Trust Bank (Duluth) Dec 12: 572 million First Georgia Community Bank (Jackson) Dec 5: $238 million The Community Bank (Loganville) Nov 21: $681 million Alpha Bank (Alpharetta) Oct 24: $354 million Integrity Bank (Alpharetta) Aug 29: $1.1 billion

UPDATE: Fitzgerald Metro Atlanta 2009 Land Report

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 14 May 2009 09:06:33 -0700

United States of America (Press Release) April 29, 2009 -- Fitzgerald Realty, Inc. of Atlanta recently completed and released its initial Metro Atlanta Land Report which compiled and compared land sales from 2007-2008 in Cobb and Gwinnett Counties. The research was collected and analyzed by Mike Fitzgerald and Nicholas Pourhassan. The data presented shows that vacant land sales are a leading indicator of the direction new construction will take, and shows that the land sales began to decline a full quarter prior to the decline of new construction starts in the counties. The report also offers an optimistIc outlook for the remainder of 2009:

". . . look for an increase
in vacant land sales
beginning at the end of
the 3rd quarter and
running through the
end of the year."

source: FPR

visit: http://www.fitzgeraldland.com/dpage.php?docID=20 or Call 404-603-5460 x 9 for your own copy of the report.

Fitzgerald Realty Inc. is located at 1465 Northside Drive, Atlanta, GA 30318. They are a full service brokerage and are currently helping banks market property they have recently taken in as REO properties due to increase in foreclosures; and also providing Site Selection for retail outlets, and Broker Price Opinions for land owners seeking to sell their land.

About the company and authors:

Fitzgerald Realty Inc.was founded in 2004 by Mike Fitzgerald;a graduate of MIT, who saw the need for a land focused brokerage in the Atlanta Metro Area. Mr. Fitzgerald has always had ties to land in the state of Georgia as both his Father and Grandfather bought and sold land in the state for over fifty years.

Nick Pourhassan recently joined the Fitzgerald Realty team after spending some time in Retail Site Selection. He is a graduate of the University of Alabama.

Fitzgerald Realty Launches Site To Help Buyers Find Deals On Foreclosed Homes

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 14 May 2009 09:03:34 -0700

In keeping with the needs of its clients, Fitzgerald Realty Inc. recently launched a new website to help consumers find affordable homes in an ever slowing economy. With thousands of new foreclosures hitting the market every month Fitzgerald Realty has made finding these properties easy for the casual homebuyer. The website allows users to browse the thousands of homes listed in the First Multiple Listing Service in order to find a potential bank owned property that they may be able to turn into a new home for themselves or even a rental property for the savy investor. Once on the site the user has many search criteria options such as minimum and maximum price, number of bedrooms and bathrooms, location by city or even zipcode. The website even recently added a mapping feature so that the user may enter basic criteria and then have the results displayed on a map to further help the potential buyer get an idea of where exactly a home is located without having to leave the comfort of their own home. When asked about the accesibilty of the site Managing Broker Mike Fitzgerald had the following comments:

"Our aim was to make this site as user friendly as possible. We understand that the needs of our clients are constantly changing and we feel that this site will help eliminate some of the stress put on a homebuyer by allowing them access to a lot of the information they might not know is out there. With everyone's busy schedules these days we understand that the last thing a homebuyer wants to do is to spend his or her weekend driving around, blindly looking at properties.We provide them the chance to preview the foreclosures before hand. Our overall goal is to bring as much information to the potential buyer as possible before they make a decision to go see a home in order to alleviate some of the stress of purchasing a new home or property."
source: FPR

To find out more visit: www.GAForeclosureSearch.com or call (404) 603-5460 to speak with a Realtor today to help you with your upcoming home needs.

Fitzgerald Realty Inc.was founded in 2004 by Mike Fitzgerald;a graduate of MIT, who saw the need for a customer focused brokerage in the Atlanta Metro Area. Mr. Fitzgerald has always had ties to real estate in the state of Georgia as both his Father and Grandfather bought and sold land in Georgia for over fifty years.

Fitzgerald Realty Releases Initial Metro Atlanta Land Report

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Mon, 04 May 2009 16:42:25 -0700

2009 Metro Atlanta Land Report After a steep drop during the first half of 2007, the number of land transactions has remained fairly steady for the last six quarters. However, the price per acre for residential land continued to decline through the end of 2008 while commercial acreage prices reached steady levels in 2008. A review of the list of transactions shows a larger number of banks taking title to land in each succeeding quarter. The land bottom will not be reached until the banks unload their inventory or demand returns for new construction.

Expect to see a slight uptick in land sales in the second and third quarters of 2009 as small pockets of demand develop for new construction. Also look for an increase in vacant land sales beginning . . .

http://www.fitzgeraldland.com/dpage.php?docID=20

New Atlanta Beltline Home Affordability Program

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 16 Apr 2009 15:56:41 -0700

BeltLine Affordable Housing Opportunity Program (BAHTF)

What is it?

The "BeltLine Affordable Housing Opportunity Program (BAHTF)" provides homebuyers with downpayment
assistance up to 20% of the sales price at 0% interest rate as a soft second mortgage.
1st Mortgage secured by ADA's participating lenders must be a Conventional, FHA or VA 30-year fixed rate loan.
1st Mortgage interest rate can not exceed the maximum monthly rate posted on ADA's website.

What type of home can I buy?

The property must be located in the Beltline Tax Allocation District. To verify go tohttp://gis.atlantaga.gov/apps/parcel_search/
Maximum purchase price limit can not exceed $252,890
Single family detached homes, townhomes, and condominiums
Property must be owner occupied

How Do I Get Started?

•1. Attend ADA approved homebuyers seminar.

•2. Contact one of ADA's participating lenders to get
pre-qualified and secure 1st mortgage loan.

•3. Find a home within the city limits of Atlanta.

•4. Have your lender complete loan package and forward it to ADA.

Beltline Affordable Housing Trust Fund Program Flyer

Preferred Housing Education providers

ADA Mortgage Programs Terms Matrix

New Site Makes Searching Atlanta Foreclosures Easy

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Mon, 13 Apr 2009 15:55:12 -0700

Shopping for a forecosure can and is often complicated and time consuming. We often find ourselves overwhelmed with the number of homes for sale on the market as well as with the enormous amount of search criteria that one might have to mull over during the home buying process.

The new website: http://www.GAForeclosureSearch.com allows visitors to search the FMLS for foreclosed homes. The advance search query not only finds properties in the pre-foreclosures and lender-owned cateorgies but the keyword search includes terms common to foreclosure listins such as "no disclsoure," "bank owned," "as-is," "seller chooses attorney," and "proof of funds."

GA Foreclosure Search allows potential buyers to not only select location and price range of prospective homes but also other basic yet critical criteria such as number of bedrooms and bathrooms.

What about the home buyer who may not have time to drive by every address in an area they may find agreeable to their criteria? GaForeclosuresearch.com has you covered as well. We get all our information from the Multiple Listing Service on which most Brokers provide photos of the homes for prospective buyers to save the buyer time in selecting homes they wish to visit in person. GaForeclosureSearch.com also takes this a step further and sends out e-mail notifications of new and updated listings that match the buyer's needs.

$8,000 Home Buyer Tax Credit Not Just for 1st Time Homebuyers

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Fri, 20 Feb 2009 20:43:29 -0800

We're still trying to find all of the goodies in the $787 billion dollar stimulus bill that President Obama signed on Tuesday, but the details of the New Home Buyer Tax Credit appear to be the shot in the arm this real estate market needs.

The new law refers to the tax credit as a first-time home buyer tax credit but the law defines first-time home buyer as someone who has not owned a primary residence for three years prior to the date of purchase of the new home. That's not what most people thought first-time home buyer meant, but this new definition opens up the tax credit to many more buyers.

So here is what you need to know in a nutshell:

1. The home must be purchased in 2009.

2. The home must be your primary residence.

3. The person buying the home must not have owned another primary residence for at least 3 years prior.

4. The $8,000 is deducted from the money you owe the federal government when you file your personal tax return in April of 2010. (Your tax bill will be reduced or you will get a refund or both even if your total tax liability doesn't equal $8,000)

5. Here's the catch: You must live in the home as your primary residence for at least 3 years or you'll have to pay the credit back to the federal government (exceptions may be made for death or divorce).

US News and World Report just did a piece on the new law at:

http://www.usnews.com/blogs/the-home-front/2009/02/17/first-time-home-buyer-tax-credit-6-things-to-know.html

Notes from Databank Real Estate Symposium, Atlanta February 5, 2009

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Wed, 11 Feb 2009 09:12:42 -0800

I attended the 2009 Databank Real Estate symposium on Thursday at the Cobb Galleria where two economists and four panels of real estate experts commented on the current state of the Atlanta Commercial Real Estate Market. All the formal economic indicators and anecdotal evidence points to a deepening of our current economic downturn with commercial real estate seeing the worst of it in 2009.

The important thing to keep in mind in an economic recession is that the economy is still producing deals and at worst we deal with GDP declines in the single digits. That means we're still humming along at 90-something percent of normal production. To survive in this climate, it is important to adapt quickly to the changing business situation.

For instance, we launched a website at http://www.gaforeclosuresearch.com to capitalize on consumer demand for foreclosed homes. The site lists all of the bank owned and pre-foreclosures available in the Atlanta residential market. We're picking up several leads a day from investors looking to purchase rental homes at a discount.

Financing

Bridge loans are still available because Fannie Mae and Freddie Mac exist.

50-60% Financing on most commercial deals.

Retail

Most retail tenants are seeking rent reductions to offset losses from lagging sales. In the rent reduction negotiation, the landlord requests two year's sales tax returns and two year's income tax returns.

Landlord looks for longer term leases and seeks to require the retailer to report their actual sales.

Ten Year supply of retail space : Shopping Center Group

Industrial Market

560 MSF total industrial currently in the Atlanta market

10 MSF average absorption annually

-3 MSF absorption in 2008

Duke Realty cap rates up 1.5-2.0%

9-10 caps on income producing properties and still not selling

New construction from the past several years has lost 60-70% of value

Best corridors: 1) I-85 North 2) I-20 West

No rent premiums anywhere

LEED certification is adding about $1-2/ft (75% paperwork) to the cost of new construction

Office

October 2006, Hines sold 1180 Peachtreee for a record $407/ft, 4.5% cap. This was the height of the office market in Atlanta.

80% Decrease in volume nationally from 2007-2008

Atlanta Office transactions: $180 B in 2007, $40 B in 2008

Flat Activity in tenant market

2008 flat absorption

Rental Rates decreasing

Expected 30% decrease in value from the record highs:

4^th Quarter 5.9- 7.0% cap rates

7.0% cap currently

9.6% cap expected at bottom

Concessions: landlord funded not amortized

Some free rent even on small deals

Very high TI allowances more than required for buildout

Apartments

87-88% Occupancy lowest in 10 years

40% of rental market single family homes called "shadow market"

18-20% of rental market 50 units or more

Housing foreclosures growing shadow market

50% foreclosures bought by investors- half resold and half are turned to rentals

2000 new single family homes turned to rentals in February 2009

8,500 new apartment units expected in 2009 8-9k units/year

Condos turned to rentals called "switchbacks"

Loosing senior tenants to retirement communities, students to new dorms, corporate units to suite hotels, construction workers to extended stay, military to on base housing

CAP floor 6.75-7.0% in town

2008 4^th quarter 6% caps were common

Sept. 2008 credit markets contracted seeing caps at 7.75%

Fannie and Freddie were buying 40% of LIHTC

CRA enticed banks to buy LIHTC-which they no longer need

LIHTC's selling for 95 cents on the dollar a couple of years ago now 65-75 cents on the dollar

How to Cash in on Atlanta's Record Number of Vacant Lots

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Thu, 04 Sep 2008 17:27:50 -0700

The Atlanta Business Chronicle Reported recently that Atlanta has a five-year supply of building lots -- a five-year supply! I can remember when just 12 months ago, I was lucky if I could scratch together enough building lots to keep my custom home builders happy. In most cases, we had to find raw land, then get it rezoned, then get a development permit and run the roads. We would gladly spend 12-24 months in site selection, entitlements and development just to have the lots to build on.

Now the situation has changed dramatically, and there is almost no demand for finished lots with many builders sitting on months of finished inventory with no homebuyers in sight. The large builders and developers have completely stopped raw land acquisitions and lot development. I was touring the state last week with an investment group from Manhattan looking to cash in on Atlanta's down market. We visited tax assessor after tax assessor in Atlanta's metro counties and the story was the same everywhere -- residential lot development is at a hard stop.

And to further complicate the issue, banks are no longer extending credit for speculation home construction and subdivision development. They've got enough problems of their own with the development loans already on their books that are past due. You see, most acquisition and development loans are for 1 to 3 years and if you agree that we're at least a year into this mess, it's easy to see that these A&D loans are reaching maturity with no one to purchase the finished lots.

In come the bottom feeders -- two months ago the Atlanta Business Chronicle reported about a new European fund that was formed to purchase entire subdivisions at 60 cents on the dollar. Our firm has some 500 developed lots listed and the only activity we are seeing is from large private equity groups looking to pay even less - sometimes 40 cents on the dollar based on what those lots were worth a year ago.

If the recent bail outs of Citibank, Merrill Lynch and Bear Stearns are any indication, there is plenty of liquidity in the market to absorb the existing lot inventory and hold it until the market turns around. So far, most of the developers, builders and lenders are not willing to part with their inventory at cut rate prices. As more and more loans mature, the price of developed lots should move towards the 50 % discount level that most investors are seeking.

The big money players have a simple strategy. Buy low now, cover the carrying costs until the market rebounds and then sell for twice what they paid. Since land is indestructible and as long as this downturn doesn't last too long, the infrastructure in these developed subdivisions should be in decent shape when it comes time to sell. So the maintenance is not the big component of the carry, it's the property taxes (which tend to be low on vacant land) and the cost of their money.

Let's look at typical new subdivision in the metro market. On average, the time to go from vacant land to a fully developed subdivision with roads and all utilities can take one to three years depending on whether the land needs to be rezoned or if utilities need to be run to the site. That's a best-case scenario if the developer doesn't have trouble with utility, zoning, or construction moratoria. When this downturn ends, builders will snap up the existing inventory of developed lots and pay top dollar or face a delay of several years if they decide to start from scratch on a new development.

Now the answer to the question, "How to cash in on Atlanta's record number of vacant lots?" Unless you're a European bank with millions of dollars to park in a developed subdivision for the next few years, you'll probably be looking at buying smaller packages of lots and even single lots. The key is finding them in good areas that will come out of this downturn first. Try to follow the same math as the big guys -- if the lot was worth $100,000 last year, try and pick it up for between $40,000 and $60,000.

Be careful of buying one or two lots in a developed subdivision where most of the lots are vacant. It's a very bad indication of the subdivision's value if the owner will sell the lots off one at a time to anyone that comes along. The rationale is that when all of the lot owners start building, the subdivision may become a hodge-podge of different building styles and home price points. That could undermine the value of the remaining lots in the development

If there are strong architectural restrictions and a requirement to build within a certain time after the purchase, you might not have reason to worry. Also find out if HOA fees will be required while you hold the lot and if the developer will control the HOA or if the lot owners will control.

Another source of small lot groupings may be found when a landowner splits up a small tract with existing road frontage into two, three or four lots. These deals are attractive because you don't have to deal with an HOA or worry about what others are doing with their lots in "your" subdivision. But be careful to understand the specifics of these infill deals. Will the lots be served by a shared driveway? What will it take to hook up utilities to each lot? Can a building permit be pulled right now on each lot without additional infrastructure? It's best to work with an experienced real estate agent specializing in land sales and a good real estate attorney and engineer.

Now the most important question of all, "How to find bargain developed residential lots?" Well a good start is the local and national MLS services. Land is a very specialized niche within the real estate brokerage community because it is sometimes handled by residential brokers and sometimes by commercial brokers. For that reason, the inventory is split between the residential and commercial multiple listing services as well as some specialty websites.

The two largest residential services in Atlanta are the First MLS of Atlanta and the Georgia MLS. You can search the Georgia MLS online for free at AtlantaMLS.com. The First MLS does not allow the public direct access currently, but there's an easy work around. You may visit any broker member of the FMLS who offers access through their website. For instance, my firm offers free access at FitzgeraldLand.com. More than half of the individual lots and small lot groupings may be found in these two services.

On the commercial side, there are three major services that list land in the metro area: CoStar, Dorey's 1st CLS and LoopNet.com -- unfortunately, CoStar and Dorey's are only available to brokers. But the good news is that most of the better small land listings are at LoopNet.com and it's free to search.

There are also land specialty websites that are free to search and I recommend LandFlip.com, LandandFarm.com, and LandsofAmerica.com. Local newspapers also carry many broker listings alongside for sale by owner properties. You should also check your local paper -- we have a list of the websites for the local papers in Georgia on our websites at FitzgeraldLand.com under the "Other Land Sites" section.

Many sites will allow you to register for a free account and then receive email updates when new properties are added that match your criteria. I highly recommend doing this because being the first to see a property gives you a leg up and a better chance to get a deal. In 2005, I did an audit of the First MLS of Atlanta and found that 1 in 2 residential properties sold while only 1 in 5 land listings sold in the same period. What this tells me is that 80% of the land and lots listed in the FMLS are either way over priced or have major flaws such as flood plain, wetlands, rough topography, poor soil conditions, surface rock, etc.

Of the 20% that did sell, most sold relatively quickly -- so any lot or land listing older than 60 days is probably not worth looking at from an investment standpoint. If you just have to find land in a certain area, then by all means check the entire inventory in that area, but for investment, you need to only look at high probability deals and those may be found in the newest listings.

One last point is that when purchasing a developed lot, you need to confirm that a building permit may be pulled without any further improvement of the lot. The whole reason to buy developed lots in the first place is that they are much lower risk than raw land because all of the leg work "should" have been done already. All that's left to do is pull a building permit and build a home. If the lot is not ready to go, then don't buy in this market -- there's just too much inventory out there to waste your time working out issues with developed lots -- unless of course the price is too good to pass up!

10 Common Pitfalls in Land Transactions

Mike Fitzgerald (Fitzgerald Realty, Inc.) — Sat, 30 Aug 2008 10:42:09 -0700

Deal Killers: Ten Common Pitfalls in Land Deals

People are constantly asking me why land deals are so special, and why the time and cost required completing them far exceeds that associated with traditional residential or improved commercial property deals. In this report, I will discuss the high points of some of the major roadblocks I've encountered while trying to close land deals. Each topic mentioned here deserves, at the very least, its own in-depth treatment, and this report will most likely raise more questions in your mind than it answers. The goal is to make you aware of what my grandfather told me when I was first wading into the land business, "You'll never know everything about any deal, and if you know that then you'll be smarter than most of the folks trying to make a living in land." Making money at the land business is all about knowing how to uncover flaws and wrinkles in a piece of land, and then managing your risk as you move the deal to the closing table.

DISCLAIMER: This report is not intended to provide legal or financial advice. This is not a complete list of areas of inquiry when evaluating a parcel of undeveloped land. Please consult a legal and/or financial professional for guidance. No brokerage relationship is created by this report. Georgia law requires a listing agreement or buyer brokerage agreement to establish a fiduciary relationship with a real estate broker.

Title Issues

'Clear and Marketable Title' is the standard requirement in most Purchase and Sale Agreements for land. In practice, this requirement is usually met when a title insurance company issues a title policy on the subject property. Almost every title policy has one or more permitted title exceptions, but it's the title exceptions that are not permitted that jeopardize many a good land deal.

Right of First Refusal One common title exception is a ‘Right of First Refusal' that requires the property owner to notify the holder of the Right if an offer on the property is accepted. The Right holder usually has some amount of time to exercise their Right to purchase the property under the terms of the accepted offer.

The very presence of this Right often poses problems to everybody involved. The Seller may have trouble marketing the property, since any buyer must wait for the Right holder to make a decision before the buyer can purchase the property. The Broker is compromised, because a commission may not be payable if the Right holder decides to purchase the property. The Buyer risks losing money invested in legal work to negotiate the contract, in addition to other due diligence work that the Buyer may need to perform, while the Right holder is weighing his decision.

Protective Covenants

Another popular restriction involves a multi-party agreement. These types of arrangements go by many names, like residential community covenant, or a commercial joint maintenance agreement, but they usually share several characteristics. Namely, the developer or a group of landowners agree to record a set of restrictions on their property in order to protect and control its use and provide for the upkeep of common elements. The goal is to protect or increase the value for each property owner.

A homeowners association (HOA) that is created with covenants in a residential subdivision is a good example. The HOA might levy dues on the homeowners and use that money to maintain an entrance feature or water detention pond owned by the HOA. It's important to review these documents carefully because they frequently restrict how lots may be divided or recombined with other lots. They also limit the type and number of units that may be constructed on a lot.

Protective covenants are almost always substantially more restrictive than the zoning code on the property. In Georgia, covenants have expiration provisions, so it's also important to get competent advice as to whether or not a particular covenant is binding on the land involved in your deal.

Deed Restriction

Another type of restriction, or covenant, that is less likely to expire is known as a deed restriction. Sometimes a property owner will hold title subject to one or more restrictions listed in the ownership deed itself. These restrictions can be inextricably linked to the land and some may never expire.

Here's an example that typifies the problem. I looked at a deal several years ago that looked too good to be true. A gentleman called me about listing 10 acres with 1000 feet of road frontage and county water. I checked the zoning code, and it allowed the property to be subdivided into 10 lots. . . . (go to http://www.fitzgeraldland.com/dpage.php?docID=8 for the complete report)