You are currently browsing the monthly archive for January, 2007.
Below are the final three economic indicators I have promised you in this series. If you would like to see the first two posts, click here: Part One: Economic Indicators; Part Two: Economic Indicators.
- Residential construction nationally may be down by 5% from last year, and a slowdown in home sales in the Northeast corridor, California, and parts of Florida has occurred. However, in metro Atlanta, home sales are persistently healthy, at strong and realistic levels. We’re fortunate the media-touted housing boom never inflated home prices in our area.
- Interest rates remain quite reasonable and among the lowest in our lifetimes
- A reduction in Federal spending has been counteracted by a surge in spending by state and local governments, up more than 7% for four consecutive quarters.
These indicators reinforce a vibrant economy and, correspondingly, a sound, brisk residential real estate market that assures homebuyers solid investment potential and home sellers attractive gains. We encourage you to take advantage of these opportunities and to call on one of our agents, justifiably described as “the most respected names in real estate” for their expertise, integrity and personal attention.
For example: items at the property that you are buying
If you are buying a house and find the perfect “play set” in the backyard and fail to mention that this is important in your decision to buy this property to your agent, it can be a serious disappointment when you arrive at move in and the “play set” was taken by the Seller.
A Seller’s Disclosure is typically attached and made a part of the sales contract, but if the Seller noted that the “play set” was being removed and taken to their new property……..and the agent and you failed to have a discussion about this particular item, the result is less than satisfactory.
Be sure that a Special Stipulation is included in the contract that specifies all of the items that are to be included in the purchase price and to remain with the property in or to avoid disappointment.
Helen Lynch
Senior Vice President
Managing Broker, Sandy Springs office
So it may be a little corny but this morning at our first Managers’ Meeting of 2007, we had a small glare problem that was easily fixed with some shades for all. We couldn’t help but say “The future is so bright we have to wear shades.”
In fact, David Lereah, NAR’s chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. “We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation,” he said. “We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it’ll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward.”
Click here to see the entire article posted on realtor.com.
As a follow up post to the first one last week on economic indicators, below are three more sound reasons to be confident that our real estate market will be supported by forward steps in the economic arena.
- The Treasury Department’s efforts to engage China in allowing its currency to rise in value against our dollar promises to narrow the substantial Chinese trade surplus with the U.S.
- Consumer spending marches along as strong as ever, with the third quarter of last year (the most recent data), up 5.4% from a year earlier; consumer consumption bolsters the economy, even despite weaker car sales.
- Non-residential or commercial construction spending soared at its fastest rate of gain in 25 years, coming in at a robust 27% higher in the third quarter than the previous year.
Have a great day, and please consider using Jenny Pruitt & Associates for the purchase or sale of your next home.
On jennypruitt.com, it’s easy to find a fantastic home in the subdivision you have always wanted to live in. First click on Property Finder, then select and click on the tab that is marked “Subdivision Search“. As you know, there are hundreds and hundreds of subdivisions in metro Atlanta. You can narrow it down by selecting the first letter of the subdivision name and the list will produce subdivision names accordingly.
Once you have selected the subdivision(s), you may enter the price range, beds, baths, and other search criteria to see which homes are available currently. To take this idea one step further, we recommend you save your search so when new homes enter the market (or price changes on currently listed homes), you receive an e-mail with the information. And no, we don’t sell your e-mail addresses when you sign up with us.
Here’s a tip: if the subdivision you’re after has more than one spelling or is listed more than once, you may want to press and hold the CTRL key while clicking on those subdivision names; this will include multiple subdivisions in your search.
Homeownership, to use an old cliché, is truly the “American Dream”. A home not only provides shelter, but for most of us it is the largest financial investment we will ever make. In Metro Atlanta, we have been fortunate to have experienced healthy, sustainable growth in housing appreciation. When it comes time to sell, we all want to walk away from the closing table realizing that appreciation through our “net equity”. This a first in a series of articles on how to sell your home for top dollar.
Pricing – Selling Your Home For Top Dollar
When selling a home, it is critical that it goes to market priced properly. The magic is in determining “market value”, the price that most buyers would be willing to pay. This is determined by studying comparable homes that have recently sold in the same neighborhood or community. Homes that are currently on the market are not the best indicators of value. While it is important to take these homes into consideration (after all they are your competition) you should not price your home based on that data alone. Anyone can “ask” any amount for a property. It is the “solds” that are the true indicator of market value.As Realtors®, we understand the temptation of many sellers to price their home higher than the comparables. Let’s address some of the common reasons for overpricing a home.
“Let’s just try it for a few weeks” The most activity is during the first few weeks of marketing. If you overprice during this critical time, you risk alienating your best potential buyers. Don’t overprice your home during your best marketing time, then reduce it when the buyers are gone. Someone can always make an offer.
When you overprice your home, the right buyers will not even see it. Let’s say the true market value of your home is $400,000 but you decide to “try it” at $450,000. The buyers who are looking at $450,000 homes that are priced correctly are seeing your home in a negative light. So by overpricing your home you are actually helping to sell those homes at $450,000 that are priced correctly!
We can always come down later
Think of a home you know that has been on the market for a long time. Typically these homes started off overpriced. They sit for months and finally the seller gets motivated and reduces the price to market value. You would expect that it would sell, now that it is priced fairly. Unfortunately, that does not usually happen. Why? The property is now “shopworn” and potential buyers wonder what is wrong with it. The buyer, especially in a buyers market, will submit a low offer. The perception now is the seller is desperate. The seller is indeed months into the process, frustrated, and often out of time…and money. The sad reality is they end up selling for less than they would have if the home had been priced properly initially.
We need the money
The harsh reality is our need for money has absolutely no effect on the market value of our home. As a buyer, would you pay more for a home simply because the seller “needed the money”?
We had a higher appraisal
When was the appraisal completed? For what purpose? In certain instances, it does make sense to have a “pre-marketing” appraisal to determine a solid list price. An appraisal more than a few months old is likely not valid. The market is continually changing and a current appraisal may be in order.
When it is time to sell, hire a professional that can assist you with determining a solid asking price…one that will help you realize as much of your equity as possible!
Rhonda Haran
Senior Vice President, Managing Broker
Johns Creek Office
