Digging for Bargain Houses

March 25, 2008

Elisa Gumbel - Loyal FanDigging for Bargain Houses - Guest Post by Elisa Gumbel

I love finding a deal. In retail stores I love sorting through clearance bins digging for that perfect bargain. So, when my friends are looking to buy a house for a bargain, I am the first person they contact.

Digging through the Internet for the best house and the best deal is as fun, if not more fun, than digging for clothes. Because when you find that perfect house for someone, they keep it for a very long time and you have the satisfaction of knowing you made that match possible.

It is kind of like being the best dating site on the Internet, but for people and their homes.

I have to admit, as much as I love to dig through the Internet, I am not the most Internet savvy person. What makes me good at the “great home search” is that I don’t mind putting in the time and effort to sort through all the real estate information the Internet has to offer.

My searching standards are probably pretty archaic when it comes to surfing the net, so I start off very basic. I go straight to Google and enter “homes for sale + city, state”. The sites listed below are typical responses that I get on my first search.

  • Homes.com
  • Free Realty Info

Usually these sites are good for digging, and take some time to find something that peaks your interest, but there are lots of hidden jewels.

I do have one complaint though: finding where these houses and condos are located…

In most cases real estate agents attach a Google maps link to the home’s info page, and it appears to be very easy to figure out where these listings are located. But, when I try to orient myself to the location Google has directed me, I get confused and can’t figure out where it is. I finally realized that if Google doesn’t recognize an address, then it places you in the center of the listed city. And in Smyrna, apparently Creatwood drive is the epicenter.

One day I ended up driving all over Creatwood drive trying to find all the great houses I found that day, and that’s when I realized that none of them are there. I know that sounds like something simple to overcome, but it took me three separate house hunts to figure that one out.

As I am sure you can tell, I have always been intrigued by the Real Estate industry. Real estate used to seem like this thing of mystery, that one day I would have to walk into it blindly. But now that I have found my love for the house treasure hunt, I realize what a fun experience house hunting can be.

Before my revelation, Realtors always seemed like money-hungry people who were looking for a fast deal. Spend no time, waste no time. After my first experience with my Sister and my Realtor, Kathy Drewien, I realized how wrong I was.

Realtors are there to make sure you are happy, and to help you find exactly what you are looking for. They are a teacher, and counselor, and a confidant (tip: if they cannot fill those roles for you… get a new Realtor). As long as you are prepared to spend serious amounts of time dedicated to your search, they will be just as dedicated — if not more. After all, this is your home that you plan on living in, and you want to love every second!

Posted by Kathy Drewien | Filed Under Buyers | Leave a Comment 

MLS Market Update March 8, 2008

March 8, 2008

I’ve just finished reviewing the mls listings activity through February. As a reminder (disclaimer), this is market information that I have compiled, not the Atlanta multiple listing services. The geographic focus is the North Atlanta suburbs. (See the zip codes included.)

The number of closed sales may continue to adjust as reports are filed with the local mls office.

The reported year-to-date numbers through February 2008:

  • 7230 active mls listings UP
  • 776 are “under contract” pending closing UP
  • 664 sold and closed UP
  • $380,929 average sales price DOWN
  • 95 average days on market. UNCHANGED

You can see the number of single-family houses on the market are up from last week’s report. So are the number of properties closed. However, the increase in new listings (168) continues to out pace the increase (90) in mls listings reported as closed.

The number of homes for sale (inventory), in contrast to the number of homes closed, enables us to calculate the absorption rate for our market area. This is simply a numeric way to report supply and demand trends.

It’s important to note the absorption rate can be quite different between price ranges and zip codes. Earlier this week we gave a good example of what our client wants to buy, and how few matching homes are available for sale.

Posted by Kathy Drewien | Filed Under Market Reports | Leave a Comment 

Atlanta Mortgage Rate Update

March 7, 2008

Strategic Financing Sells Homes Faster

With interest rates on the rise, it’s become increasingly difficult for many homeowners with Adjustable Rate Mortgages. Each month, they watch their monthly payments increase as interest rates climb closer to the lifetime caps of their loans. In addition, property owners who are looking to sell are finding that their properties are staying on the market for longer periods as buyers have more options to choose from.

Thankfully there is a solution for both of these issues. This special mortgage program has no margin and no index, yet it offers greater financial flexibility because of its tiered interest rates. During the first year of the loan, the borrower pays a rate that’s 2 full percentage points below the current prevailing rate for a 30-year fixed. During the second year, the borrower pays a rate that’s a full 1 percentage point below the prevailing rate. From years 3 through 30, the loan caps out at a rate that’s much lower than their current loan’s cap rate. This provides the borrower with greater cash flow, stability, and instant relief from interest rate nightmares.

For those who are seeking to sell homes more rapidly, attaching a strategic financing program to a specific property for a limited time will create both buyer incentive and a sense of urgency, making marketing and selling the property a breeze. Buyers are inspired to act quickly in order to take advantage of this unique financial benefit. Strategic financing is a perfect solution to today’s challenging market.

Mortgage Interest Rates*

Rates as of 03/07/2008:

30-Year Fixed: 6.125%. (APR 6.265%)

15-Year Fixed: 5.55%. (APR 5.730%)

5-Year Fixed ARM: 5.000% (APR 5.131%)

5-Year Interest Only: 4.125% (APR 4.250%)

Rates increased over the last week. Our float down option allows you to be protected if rates drop prior to closing.

BTW… Here’s a great Dan Green Mortgage Reports article on How to Use Interest Only Loans to Your Advantage.

*Rates are subject to change due to market fluctuations and borrower’s eligibility.

Posted by Jim Greenie | Filed Under Market Reports | Leave a Comment 

MLS Listing Photo Shoot Gone Bad

March 6, 2008

This is the third in the series of bad MLS listing photos. Actual photos of homes for sale… Can you believe the level of service sellers tolerate?

[youtube QdC6SvjFgsM Bad MLS Listings Photos in Video]

Demand more from your real estate agent.

Related Post: Real Estate Agents Don’t Get the Picture

h/t to Ryan Ward

Posted by Kathy Drewien | Filed Under Sellers | Leave a Comment 

How Many Geeks Does it Take to Sell a House?

March 6, 2008

Can You Sell a House and Move Using the Web Exclusively?

Drew raised some interesting questions after stumbling across a post on Proud Geek earlier today.

The blogger (and his wife) conducted a 8-month experiment to sell their home using the web. No phone calls. Only e-mail, text messaging, and web tools.

There were 6 main steps they went through during the experiment (you can read their findings on Proud Geek):

  • Find a realtor via the web and who’s willing to do everything through email
  • Advertise the home on the web
  • Find a lender who’s willing to deal exclusively via the web
  • Switching or starting new utilities and services for a new house
  • Find a moving company willing to deal via web and email
  • Changing addresses for a range of organizations, stores, banks, employment-related sites, etc

Can you, as a real estate agent, meet the criteria the blogger set forth? What about you mortgage folks?

Sellers, how important is electronic communication to you?

Our team always get hung up with the utility vendors.

What’s your experience?

Use Comments to respond (under title). We really want to know.

Posted by Kathy Drewien | Filed Under Sellers | Leave a Comment 

Is Atlanta a Buyer’s Market or a Seller’s Market?

March 6, 2008

It depends.

Here’s a question raised by one of our readers in response to our report on North Atlanta market statistics:

With home prices increasing, does that mean supply is decreasing? How is the average home price increasing if inventory is high (assumption)?

The answer to that question requires a review at the hyper-local level.

Are you asking about houses in North Atlanta? South Atlanta? Intown? With lots of acreage? A close commute? Within the best school district? What price range?

Try looking for a 4-bedroom home in a great school district (no stucco please), priced between $375,000 and $450,000, built within the last 7 years on a 1/2 acre lot.

I found a total of 7 at 2:00 this afternoon — a little less than 6 months inventory. For a seller with a home meeting this description, it is a seller’s market.

The prices of North Atlanta homes are increasing simply because the value of homes has continued to increase - even though the homes are taking a little longer to sell.

Spread the word… North Atlanta is a strong, viable market!

Posted by Kathy Drewien | Filed Under Market Reports | Leave a Comment 

Top 10 Reasons for Walkable Communities

March 2, 2008

I recently read a post on Atlanta Real Estate Forum outlining the top-10 list of benefits for walkable communities:

  1. Less traffic congestion
  2. Higher property values
  3. Lower transportation costs
  4. More places to have fun
  5. Stronger communities
  6. Reduced crime
  7. Better access for non-drivers
  8. Less stress
  9. Less pollution
  10. Better health

Reading about “walkable communities” always makes me think of my clients, Becky and Hal.

When Becky was relocating to Atlanta she wanted to find the best public schools for her children. So, Becky reviewed the school reports and decided East Cobb County would be the focus of her home search. The schools in Marietta were among the top ranking in the state, and houses were within her price range.

Hal was living in Inman Park. Located two miles east of downtown Atlanta, Inman Park is a close-knit community with locally owned shops and businesses. Moving to the suburbs of Atlanta was a big step for Hal.

I remember Hal asking, “Where can I walk to get my white sauce pizza?” My answer, “No where. You’ll call and have it delivered.”

Marietta (East Cobb) would not be described as a “walkable community” — but, you can find neighborhood subdivisions with sidewalks. You can find parks. You can find locally owned shops and businesses.

And, you can find pizza with an Alfredo sauce. I just called, mine will be ready for pick-up in 15 minutes.

Related Post: How to Find the Best Atlanta Walking Neighborhood

Posted by Kathy Drewien | Filed Under Neighborhoods | Leave a Comment