I think in the Atlanta real estate community we can all agree that the Atlanta real estate market we've known it for the past few years has changed.  Homes in Atlanta area not selling as they were last year.  It is a buyers Market without Buyers! There are over 114,000 homes listed for sale in the Atlanta market, Each month the sales are now starting to be exceeded by the expireds and withdrawn listings. That is not even tapping into the foreclosure and Atlanta new homes market.  However, no need for alarm, it is just part of a business cycle that is neither all up, nor all down.  For those that are new to real estate it is always the end of the world.  However, homes in Atlantaare still selling!  Which ones?  Well for one our listings are.  The homes that are selling in Atlanta are the ones where the sellers that are listening to the advice of their experienced listing agents.  Sales are not all made by dropping prices either!  Your home in Atlanta has to be priced ahead of the curve, immaculately clean, neutral colors ready to move in,and the seller will have to work with the buyers to assist them with the new challenges of mortgage financing. 

Whereas the seller could negotiate with the buyer in the past about paying any closing costs, it is now probably a smart choice if an Atlanta home seller considers paying the closing costs of the purchaser and even considering a buy down to subsidize a lower interest rate for the purchaser for the first few years of the loan, and the seller should even consider holding paper when possible Most new agents will not understand or know how to advise an Atlanta home seller, but experienced agents that have weathered tight markets in the past will jump in with solutions that work!  So the seller needs to start listening to the seasoned agents that have gone through this before.  It's not about boasting thta you have the biggest home in the neighborhood, the one on the biggest lot, and the biggest nails.  In this market a lot of the denial of many home sellers is to believe their home is the best...in the meantime the market is slipping away.  Every homeowner believes that they deserve the best price!  So take a number!  If you make the wrong choice when listing your home and it doesn't sell, don't go blaming the agent.  You hired this!

Atlanta home sellers have to realize that they are competing with twice the homes for sale as we should normally have, foreclosures, new home construction with loads of builder buyer incentives, bonuses, and other buyer incentives that are not working either!

  • Price: Priced Correctly So Buyers See You are A Serious Seller
  • Appearance: Immaculate Clean, neutral decor, No Odors.
  • Terms: Fast Closing, Seller Contributions to Buyer's Financing

Jim Crawford REMAX

RE/MAX Greater Atlanta  770-238-0122 Direct

Or  888-992-5546 Toll Free Office

Atlanta Real Estate & Atlanta Homes for Sale

 

7 Comments on A Changed Atlanta Real Estate Market | New Realities for Atlanta Home Sellers | List Your Home or Sell It?

SEP
01
2007
100,150 Points 1 Featured Post

Great info, Coach.  As a new agent, I have a couple of questions. 

When you suggest that the seller consider a buy down, are you meaning that the seller pay points on the buyers loan?

I have no idea what "holding paper" means.  Do you have time to explain?

Thanks!

9:41pm • #1
599,487 Points 80 Featured Posts Outside Blog

A buy own in rates is an upfront subsidy of a slightly higher rate perhaps for 1 year or more.  In hte past we had 3-2-1 by downs.  They always exist, yet most new agents never had to use them before.  In this market the buy downs may offset or at least buffer the burden of a second mortgage for at least a year or so.  Holding paper mean the seller provides the financing.  The seller may hold a first or second mortgage.  It was more common years ago, but can be done at any time.

With historically low rates for the last few years there was no need to do any of this.  However, the rates we have had for the last few years were not normal.  8 or 9% are more the norm.  A seller can also earn interest on the money lent!  It can be attractive for a seller looking for an investment.

9:50pm • #2
3 Featured Posts

Jim,  I like that "a buyers market without buyers"

Welcome to the midwest, been like this for a year.

10:05pm • #3
599,487 Points 80 Featured Posts Outside Blog
Gary, I think we've held our own in Atlanta until just recently.  The market this year has been sporadic and unpredictable.  However there is one pattern that is becoming clearer.  Listing inventory is still growing and sales are softening.
10:51pm • #4
SEP
04
2007
Well said, Jim.  Michigan's market is definitely a changed one.  Pricing ahead of the curve from the start is one of the greatest marketing tools to use.  The real estate market is cyclical and right now we must use our knowledge and experience to help the sellers weather the storm.
6:30am • #5
1 Featured Post
Jim, we have been offering a buydown for several months now with no takers. Really the only thing working now seems to be price, closing cost & a home warranty. Competition for buyers between new and resales is tough and our sellers know it. Builders beware, folks don't move into expensive developments from apartments. Most need to sell first.
6:52am • #6
599,487 Points 80 Featured Posts Outside Blog

Deb you are so right.  Most sellers, and most agents focus on the other homes for sale in the neighborhood.  The mistake is they look at the listing price of the other homes, and get into a contest of worth.  "My home is better than the Smith's!"  That is the wrong direction to go.  Appraisers only look at the sold prices.  So scrap padding the price for appreciation, because there isn't any.  In some neighborhoods the prices are going down.   So those are the new comps!  The lower most recent prices.  Do not be too quick to throw out the lowest prices, remember they are the ones that sold.  There will be more of them shortly.

Keith then it price + a buydown!  Whatever works use it.

8:05am • #7

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Jim Crawford ~ Atlanta Real Estate-ABR E-PRO

Atlanta, GA

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RE/MAX Greater Atlanta

Address: REMAX Greater Atlanta, 1585 Holcomb Bridge Road, Roswell , GA, 30076

Office Phone: (770) 238-0122

Cell Phone: (770) 664-9516

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Atlanta real estate broker associate, real estate columnist for www.RealtyTimes.com, real estate speaker. Real estate marketing, Internet marketing for real estate, real estate coaching Feedjit Live Website Statistics


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