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As a homeowner, do you have appropriate homeowners insurance coverage?

Given the increase in home values of the last several years, it is important to be sure that your insurance would cover the cost to rebuild, in the event your house was destroyed by fire.

One insurance tracking firm estimates that the average under-insured shortfall is approximately 20-25%. Even if you have guaranteed replacement or an extended replacement policy, you can still face coverage gaps. Check with your insurance carrier to determine if you have adequate coverage in the event of a loss.

Also, remember that your regular policy typically does not cover losses as the result of a flood. If you live in a flood plain, you need flood insurance. To do so, contact the National Flood Insurance Program at (88 379-9531 or visit their web site.

Helen Lynch

Senior Vice President

Managing Broker, Sandy Springs office

Did you know that Georgia State Law requires you to sign an Exclusive Buyer Brokerage Agreement when working with a real estate agent? Signing this allows you to establish an agency relationship with your real estate agent. The agreement must be in writing and it creates a client relationship between you, the buyer and the broker.

If you wish to not sign this agreement, you will be treated as a customer.  There is a big difference between the level of service provided when you are acting as a client and when you are acting as a customer.  If you are a customer, the real estate agent can simply provide ministerial acts such as giving you the names of vendors, writing the purchase and sale agreement and giving you the comparables for homes which are presently listed and those which have sold over the last 12 months in a specific neighborhood (which is actually public information).  The agent should always disclose material defects that are known to them, whether there is an agency agreement or not.   

In a client relationship, the agent can give you his or her advice and counsel, point out reasons not to buy a house, help the buyer develop a negotiating strategy, help them decide what price to offer based on a Comparable Market Analysis, and keep the buyer information confidential, except as required by law.  In other words, when you have a client relationship, agents can use their “minds” and give advice, as opposed to a customer relationship, where the agent can simply use their “hands and their feet” performing ministerial acts. 

It is for this reason that we strongly suggest that you have representation when purchasing a home.  This is something that you should discuss with your Jenny Pruitt agent at the start of your home search.  

The 2006 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers describes the characteristics and motivations of recent home buyers and sellers and in so doing helps real estate professionals track the changing demands of consumers in a dynamic market.  We thought you might be interested in some of the snippits from this important research.  

CHARACTERISTICS OF HOME BUYERS

• The typical home buyer was 41 years old. Among first-time buyers, the median age was 32.
• More than one-quarter of buyers reported a 2005 household income of at least $100,000.
• Sixty-one percent of recent home buyers were married.
• For repeat buyers, the most important reason for their purchase was a desire for a larger home.

CHARACTERISTICS OF HOMES PURCHASED

• One in five homes purchased by recent buyers was newly built.
• Three-quarters of homes purchased were detached single-family homes.
• Neighborhood quality was the most important factor for buyers in selecting a location.
• The typical buyer purchased a home that was slightly more than 1,800 square feet in size.

THE HOME SEARCH PROCESS

• Eighty-five percent of home buyers used a real estate agent during their search for a home.
• Nearly three-quarters of buyers viewed the Internet as a very useful tool in their home search.
• A majority of buyers reported that they drove by a home viewed online.
• Typical buyers searched for eight weeks before finding the home they
• purchased.

HOME BUYING AND REAL ESTATE PROFESSIONALS

• Over three-quarters of buyers used a real estate agent to purchase their home.

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Your home is often the largest single investment you will make. Not only is your investment monetary, but you are also investing in a quality of life for your family. Your choice determines the friends your children may choose, the schools they will attend, and the community where you will make a life. It will affect many aspects of your daily life such as commute time to your office, proximity of recreational facilities, convenience of shopping and places of worship.

Before making a decision that is life changing for your family, you should ask yourself some important questions before you invest in a home and a neighborhood.

• Are you choosing an area that will appreciate in value to protect your investment?
• Is your neighborhood one that will allow you to sell you home quickly should the need arise?
• Are the taxes reasonable for the services you receive?
• Do you want access to mass transit?
• Even if you don’t have children, will the next family who considers purchasing your home find the schools of your neighborhood desirable?
• Have you research the reputation and quality of the builder of your home?
• The Covenants and Restrictions for each neighborhood are a road-map for exterior changes you may decide to make. Have you reviewed this document?
• Proposed changes in zoning or road improvement should be researched.
• Do you know the value of other homes in the neighborhood?

For school research, be sure to visit our web site, and also the Georgia Department of Education. Also, for general quality of life in the Atlanta area, you can explore the Atlanta Chamber of Commerce.

Your Jenny Pruitt REALTOR is the best source of information to help you answer the important questions about choosing the right home. They will provide data on recent sales in the neighborhood you choose, and if serving you as a buyer’s agent, will advise you on how to structure your offer to purchase.

Enjoy your home, but remember to do your homework before you buy!

Karen McRae, SCRP, GMS

Senior Vice President

Director of Relocation & Business Services

After having been pre-approved for a mortgage by your Jenny Pruitt Mortgage Representative you are ready to start the emotional and exciting home buying experience. When your real estate agent shows you that near perfect property you have been searching for it’s time to begin the process.

After your agent has helped you negotiate the best deal possible for you and the seller of the property and the sales agreement has be accepted by all parties, the real work begins. Most likely the buyer will have a home inspection performed by a home inspector to discover any glaring defects the property may have. After the lender has appraised the home and all loan requirements have been satisfied the deal should be ready to close.

Are we missing anything? Maybe. Are you quite sure where the boundary lines are located for the lot which you are purchasing? If there are fences surrounding the property, do they belong to you? Does the large 50 year old oak, which appears to be dying, belong to you are your adjoining neighbor? Are there sewer or utility easements on the property you are purchasing? If you want to make additions to your new home or build a garage do you know what the set back requirements are? Will the underground utilities allow you to build that swimming pool your family has always wanted?

The above questions can all be answered by having a reputable surveyor complete a survey on the property you are purchasing. The cost for a survey will vary from $400 and up. Most lenders do not require a survey but for the many reasons you should. If you are buying a vacant property on which you plan to build you may wish to have your surveyor provide a topography study along with the survey. This will help you decide the absolute best place to build your house or other structure.  

Happy House Hunting,

Rob Owen 

Senior Vice President, Managing Broker
Buckhead office

We are excited to announce the addition of Land Acquisition and Marketing to the array of services available to builders and developers by the Jenny Pruitt New Homes Services team.  This allows us the ability to offer developers and builders something unique:  professionals focusing exclusively on all aspects of land transactions throughout Atlanta and outlying markets. 

Katherine Woodruff and Caroline Simmel are the project leaders for this team. Caroline and Katherine have diverse backgrounds in marketing and sales, and bring a unique approach to land acquisition and disposition within the commercial and residential real estate markets.  The team is involved in developing relationships and maintaining them through performance, integrity, and hard work for both land owners and developers. Caroline and Katherine use their broad experience to provide comprehensive acquisition and development project planning and research from identification and contract phase, to final land planning stages and due diligence coordination.

Jenny Pruitt New Homes Services offers developers and builders a full comprehensive approach to residential community development that includes Land Acquisition & Marketing, feasibility studies for new projects, market research and trend analysis, product development, expertise & support to the builder/developer throughout all phases of community development and build-out including builder program implementation and management.  To round out our services, our sales & marketing team oversees the creation and management of all marketing, public relations and media plans for the communities.  The recruitment, training and management of top New Homes Agents is paramount to our success.  With this new addition, New Homes Services is a one-stop shop offering full service to our clients.

Please join us in welcoming our newest members!

Congratulations to our 2006 premier agents! Yesterday our top agents, along with numerous awards, were announced at our annual Golden Shell awards banquet. We would like to extend a special thanks to all of our agents who continuously serve our metro Atlanta area at a performance level second to none.

Wes Vawter: #1 Agent of Jenny Pruitt & Associates Company-wide

• Top Agent company-wide for 17 consecutive years
• Consistently ranked among “Top 3″ teams of the Atlanta Board of Realtors
• Over $86.5 million in gross sales last year
• Global sales since 1984 exceeding $846 million
• Community advocate active in the Southern Architecture Foundation, Atlanta Preservation Center, High Museum of Art and the Kingswood Neighborhood Association

Buckhead Office: 3405 Piedmont Road - 404.814.9000

Carolyn Mellon: Sandy Springs Office #1 Agent for 6th Consecutive Year

• Founding member of Jenny Pruitt & Associates Realtors
• Sixth year as Top Agent in Sandy Springs office
• Recipient of the Atlanta Board of Realtors Crystal Phoenix Award
• Jenny Pruitt & Associates “Top 20″ agent for 14 years
• Life member of the Atlanta Board of Realtors Million Dollar Club

Sandy Springs Office: 5290 Roswell Road - 404.250.9900

Donna King: Cobb Office #1 Agent

• Member of the Cobb Association of Realtors Million Dollar Club
• New Homes Agent of the Year seven times in a row
• Recipient of the Cobb Association of Realtors Crystal Phoenix Award
• Sales of over 500 new homes in Cobb county
• On-site agent for the new communities of Greyfield on Oak Lane and Bellingham

Cobb Office: 4651 Olde Towne Parkway - 770.509.3370

Michele Collins: Johns Creek Office #1 Agent

• Ranked #3 city-wide by the Atlanta Board of Realtors
• Experienced specialist in the luxury homes market
• Member of the Atlanta Board of Realtors Million Dollar Club
• Role model who shares her time and expertise with fellow associates as speaker for “Career Conversations.”
• Annual sponsor of Sugarloaf Holiday Tour of Homes

Johns Creek Office: 7350 McGinnis Ferry Road- 770.497.2000

Allison Kloster: #1 Agent in North Fulton Office

• Top producing team, with husband Peter Kloster, in North Fulton office
• Top 15 agent of Jenny Pruitt & Associates company-wide
• Served on President’s Advisory Council and Relocation Advisory Council
• Jenny Pruitt & Associates Customer Service Award Winner for 2004 and 2005
• Life Member of the Atlanta Board of Realtors Million Dollar Club

North Fulton Office: 3875 Mansell Road - 678.461.8700

Congratulations to Kelly Boudreau, who represented the buyer in Atlanta’s most expensive home purchase in 2006.  Kelly’s buyer purchased the lovely and expansive estate pictured below, located in Buckhead on West Conway.

Soon the tulips will be sprouting and spring will be in the air, and you will have vacation on the brain! Then begs the question, “To buy or not to buy a vacation home?”

At the end of 2005, according to the National Association of Realtors, the number of second homes reached 3.34 million. So many vacationers love to look at flyers and open houses to dream of that home at the beach or in the mountains. Over the past several years, “baby boomers” really fueled the fire to the second home market. Between 2000 and 2006, many of the top vacation markets rose over 120%. So, when is a good time to buy that second dream home? The easy answer is “now,” but with your eyes wide open!

The first consideration is to buy for the love of it and not necessarily for the investment. Buy because you and your family really enjoy coming to the place you adore and will want to come to for years. That way if the market dips or increases, you can weather the storm. Think enjoyment, not necessarily investment.

The second consideration is to not let the Pina Coladas and the sunsets go to your head! Buy with your eyes wide open. Is this “the place” your family wants to vacation at for the near future and ca you really afford this? Talk to someone at Jenny Pruitt Mortgage Services  about the costs of owning a second home. Typically, lenders view second homes as a greater risk and you may pay slightly higher rates. You may also want to talk with someone at Jenny Pruitt Insurance Services  about the costs of insuring a second home. Homes near the water are affected by high winds and flooding. Make sure you know the costs of a second home.

In addition, consider the costs of upkeep and association fees you may have to pay for your second home. Pay attention also to the rules and regulations of the association. You don’t want to purchase and realize that there is a “no pet rule” and your four-legged family member has to be left at home!

There is no doubt that a second home is a place where memories can be made and real estate investments have traditionally been the best part of an investment portfolio. But as with any investment, do your homework and consult with your Jenny Pruitt associate to make your second home investment the best it can be.

Jim Alexander
Senior Vice President, Managing Broker
Sandy Springs office

Excerpt taken from ajc.com (1/23/07), “Will Roswell or Milton get Ted’s Spread? And the castle?” by Paul Kaplan

Thirty years ago, the McLaughlins built their dream home on two un-incorporated acres at the intersection of Arnold Mill and Cagle Roads (Roswell). Rudy McLuaghlin’s ancestors had a castle in Scotland in teh 1600s, but he couldn’t afford his own on a trucker’s salary.

So, the McLaughlins built themselves a miniature castle. Theirs is 1,700 square feet of stone, surronded by a miniature moat and traversable only via miniature drawbridges.

“Folks stop and take pictures of the place everyday.” said RuthMcLaughlin, a cheerful sort who’s 75 years into a deep Southern accent. And if she happens to be outside, they’ll pepper her with questions about her little castle in the suburbs.

Jeanne Linden

Senior Vice President, Managing Broker

Cobb Office

Investing in residential real estate is one of the primary means of wealth accumulation in America today. For most Americans, investing in their own home is the best investment they will ever make. Extending that investment to other properties can be an excellent means of building net worth.

There are five key characteristics that make real estate investing particularly attractive to the small investor.

1. Income - The property produces income in the form of rent and that income can be used to pay for the investment itself.
2. Depreciation(and other tax benefits ) - Many investors aim for a “break even” cash flow, but still get solid cash tax benefits from the tax shelter generated from depreciation.
3. Equity Build Up - Equity in the property grows from the gradual pay of the loan balance through amortization.
4. Appreciation - This increase in value can come from two sources: from the economy (overall increase in value of real property) and from the improvements made by the owner (paint, carpet, adding a deck, etc).
5. Leverage- It only take a small amount of cash to control a relatively large investment in residential real estate.

These primary benefits of residential real estate can reward the investor year after year and allows the individual to begin building wealth in his or her spare time.

Sue Forness

Senior Vice President, Corporate Services

1. Communication, communication, communication. Sellers should let their agent know how often they would like to be contacted. Whether it be once a week or once a month, this information is critical to both parties. It’s also important to discuss the best method of communication: email or phone call. 

2. Pricing.Sellers should ask to see the statistics and comparables that their agent has used in determining an initial listing price for their home. Be wary of agents so anxious for a listing, that they will price the house just to make the seller happy, rather than at a price that a thorough market analysis indicates. 

3. Marketing. Sellers should expect regular updates on the marketing that has been done on their home. This should include the number of showings by agents as well as the feedback from those showings. Since more and more of the public shops for real estate on web sites rather than in print media, ask your agent if his or her web site tracks the number of times the home has been viewed on the company web site. This information is a great indication of interest in the property and its price. 

4. Honesty . Although sometimes difficult to hear, sellers should expect honest feedback from their agent and potential buyers who have viewed their homes. Remember, your agent is a professional and this information needs to be delivered in order to have your home make the top of a buyer’s list.

The second article in the series on “Selling your Home for Top Dollar”.  Click here to see the first article.

There are basically three factors that affect the sale of a home: price, condition and marketing. In order to secure top dollar for your home, it is critical that each of these are positioned properly.  Last week we discussed the importance of pricing your home correctly.  Today, we’ll take a look at condition.  

What is condition anyway?  Condition is the state of your home or the way it is viewed from the eyes of potential buyers, especially in comparison to other homes on the market.  This becomes especially important in a buyers market.  When buyers are looking at 30-40 homes or more before choosing one to purchase, we must ask, what is it about my home that will cause them to stop, have a second look and ultimately buy?

Condition also includes interior and exterior factors.  Some factors you can control such as landscaping, painting and cleaning to make your home sparkle!  Other factors such as power lines behind the property, very steep driveways, and questionable building products we cannot change.  For these factors we typically must make a price adjustment in order to compete with comparable homes that do not have the perceived negative feature.

Your REALTOR® can guide you more specifically on these items and offer their professional advice on what you can do prior to putting your home on the market so that you too can sell your home for top dollar! 

Rhonda Haran

Senior Vice President, Managing Broker

Johns Creek

Years ago if someone told you that their office building was a green building, most likely you would assume that they were referring to its color. Today, the term has a much different meaning.

Green building is a general term defined as the planning, design and creation of a commercial or residential site in an environmentally-friendly manner to accomplish some or all of the following objectives: higher energy performance, increased indoor air quality, use of recycled building materials and other features that reduce the environmental impact of new development.

The main driver for the birth of green building can be traced to the impact of high energy costs as well as the need for Smart Growth which means “preserving rural land, revitalizing already-developed areas, and accommodating future growth in high-quality urban settings” according to an article in Realtor Magazine.

What’s in it for me?
The major benefit of green homes is two-fold for the consumer. The first is related to energy costs. Specifically, the savings to your energy bill because of the implementation of energy and resource efficient products and methods. The second benefit is improved quality of life long-term. By utilizing environmentally friendly practices, the reduction of the environmental impact will be lessened compared to the traditional methods.

If you would like additional information on green building projects in Atlanta, visit http://www.atlantaga.gov/client_resources/mayorsoffice/green%20initiative/accomplishments/atlantaleedprojects-final.pdf or contact any of our knowledgeable agents.

Jenni Bonura
Vice President of Career Development
Jenny Pruitt & Associates, REALTORS

By Jaclyne Badal
From The Wall Street Journal Online

Want a quick way to lower your utility bills? Check for water leaks, starting with the toilet.

“Most toilet leaks are silent; you can’t see or hear them,” says Helga Kessler, public service manager with the St. Paul, Minn., water utility.

A leaky toilet is the most common reason for a spike in home water bills. The city of Portland, Ore., estimates a silent leak can waste as much as 300 gallons of water a day without anyone noticing.

The cost of that leak will vary depending on where you live. In Albuquerque, for example, a 300-gallon-a-day leak costs $204 over the course of a year. That cost jumps to $256 per year if you live in St. Paul, Minn. And those figures don’t include fees for sewage services.

By comparison, a faucet that leaks two drops of water every second costs about $10 a year in Albuquerque and $12 in St. Paul.

Checking for toilet leaks is relatively simple. Add dye to the water tank — 10 drops of food coloring are enough — and wait about 30 minutes. If the water in the toilet bowl has even a hint of color when you return, you have a leak.

Most leaks are caused by a bad “flapper,” the circular object that covers the hole in the bottom of the tank. Flappers are fairly easy to replace, and you can buy one for less than $5 at a hardware store.

You can also check with your local water utility if you suspect you have a water leak in your toilet or elsewhere. Some utilities offer free audits to detect leaks. Others offer free pamphlets that teach you how to find and fix leaks on your own.

Daily Real Estate News | January 26, 2007

The Top 10 Luxury Markets to Watch

Unique Homes Magazine in its January issue lists what it expects to be the top 25 luxury markets in 2007. Collectively, the communities that made it on the list represent where the market is heading, according to the magazine. Here are the Top 10 and the factors that make them standout as leaders of the pack:

1. Annapolis, Md.: Great boating and affordable prices compared to Washington, D.C., or Baltimore, both of which are a reasonable commute from Annapolis, too.
2. Asheville, N.C.: Eclectic ambiance draws the upscale to an outdoorsy, low-key lifestyle.
3. Aspen, Colo.: Four-season appeal, which is kept exclusive by restrictive zoning that restrains supply.
4. Atlanta, Ga.: A big-city appeal with lots of lifestyle amenities and new upscale communities.
5. Austin, Texas: Posting record gains for most of 2006, a mix of newcomers are drawn to its great music and scenery and the cosmopolitan University of Texas.
6. Bellevue/Medina, Wash.: This city has lots of upscale neighborhoods that arent as pricey as other northwest areas.
7. Beverly Hills, Calif.: Its reputation as a Mecca for luxury remains untarnished.
8. Idaho: The state is a luxury newcomer with growing resort markets, such as Coeur dAlene, McCall, and Sandpoint.
9. Jupiter, Fla.: Tiger Woods started a trend here when he purchased a 10-acre estate for $38 million.
10. Manhattan: Wall Streeters flush with 2006 bonuses are snapping up desirable co-ops and town houses.

Source: Unique Homes, Camilla McLaughlin (December 2006/January 2007)