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Metro Atlanta Real Estate Interest Rates and Affordability

Recent trends have seen Metro Atlanta real estate interest rates rise slightly over the past couple of months. While prospective home buyers may feel disillusioned by rising rates, let's take a look at what it may mean for them and the possibility of becoming homeowners.

As mortgage rates increase, naturally, the amount of home you can purchase decreases. In other words, the higher the interest rate, the higher the payment — and perhaps the lower the mortgage amount must be to be affordable. Borrowers need not be completely dismayed however, as there is flexibility among mortgage lenders and their qualification guidelines. Let's take a short revisit of the rate fluctuations since the presidential elections of this past November and review how interest rates have affected home affordability. How will recent Metro Atlanta real estate trends affect the housing market?

Metro Atlanta real estate interest rates have risen slightly over the past couple of months.

A Recap of Metro Atlanta Real Estate Interest Rates and the Outlook for the Future

Between the election on November 8 and Christmas of 2016, Metro Atlanta real estate interest rates went up .75%. The rate increase was fueled in part by the feeling on the part of the American public that the new administration would enact policies of infrastructure spending, tax cuts, and a certain amount of deregulation that, once enacted, would be inflationary. In addition the skyrocketing gains in the stock market pushed the bond yields downward, and since mortgage rates are very closely tied to the US Treasury bond rates, mortgage rates had nowhere to go but up.

Most savvy economists felt when interest rates rose, they would also level off in time. And, while that is happening, it is still volatile at best. Interest rates go up and down literally daily in response to investors reacting to policies of the new administration. When investors exhibit concern that post-election inflation will continue to occur, the rates go higher. Conversely, when investors feel inflation will be softened by certain policies, delays in action, or hindrances, rates will come down.

The bottom line for interest rates is the post-election peak seems to be over, and the net result is an interest rate increase of roughly .5% since the election.

Experts predict continued rate volatility as stock market investors and the Federal Reserve work to gauge interest rate movement as part of the new government administration. Here's how that volatility is expected to impact housing activity.

The Effect of Metro Atlanta Real Estate Interest Rates on Home Affordability

According to experts, a $350,000 home purchase on which a prospective borrower plans to put down 20%, a rate increase of .5% reduces the affordability by roughly $17,000.

While such a decrease in affordability may tend to make a prospective homebuyer look for a lower-priced home, there are other alternatives — especially if you're familiar with how most mortgage lenders operate.

For decades, mortgage lenders have used a debt-to-income (DTI) ratio in their qualification guidelines. A DTI compares the relationship of your total monthly recurring debt to your gross monthly income. Mortgage lenders typically like to see a DTI of 43% or less.

Borrowers earning, say, $65,000 annually with monthly obligations such as an auto loan and credit card bills totaling $615 per month may have qualified for the $350,000 home mentioned above. However, at a slightly higher interest rate of .5% more, they may not. Here’s why: At the income and debt totals currently, the DTI ratio was less than 43%. With the rate increase, it’s climbed to over 44%. At first glance, the only solution is to work to reduce the purchase price down to $333,000 (the original $350,000 less the $17,000 by which the affordability was reduced.) That would reduce your DTI back to a level less than 43%. However, let’s consider an alternative.

Increasing Home Affordability

Rather than trying to get the price reduced by $17,000, most experts recommend lowering your other recurring debt. As an example, a monthly credit card payment of $125 with a remaining balance of $3,125 can be reduced to roughly $45 per month by paying down the balance by just $2,000. Honestly, that may be a much easier solution and a much softer sell than trying to get the seller to come down $17,000.

Analyzing Metro Atlanta Real Estate Interest Rates and Trends to Make the Best Decisions

It’s important to keep an eye on interest rates and other changes in the marketplace. Remember, in much the same way that the old adage, “All real estate is local,” all mortgage lending is individual. What that means is every situation is different and everyone’s DTI is comprised of components that may be changed slightly to improve the qualification percentage. Don’t make the erroneous assumption that rising rates will always reduce the price a borrower may qualify for.

See more articles pertaining to the latest Metro Atlanta real estate interest rates and trends in the section of articles on Atlanta Real Estate just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there as well.

Metro Atlanta Real Estate Outlook: Millennials on the Move

The Metro Atlanta real estate outlook includes an update on what millennials have been doing lately. In recent years, millennials have been largely thought of as a generation of renters. They’ve unfairly received this moniker because of a number of factors, none the least of which is that home prices throughout the U.S. have consistently grown faster than wages. However, an improved and lowered cost of living combined with better job growth and rising incomes has led and will lead to many millennials beginning to buy houses.

Four areas in the Metro Atlanta real estate outlook designed to attract millennials.

According to real estate market research findings, last year nearly half of the total number of homebuyers were first-timers – and the majority of those were younger Americans aged 18 to 35 – millennials, by definition. All indications are for 2017 the percentage of millennials entering the housing market will continue to increase.

During the third quarter of 2016, the U.S. Census Bureau reports that home ownership was at 63.5%, slightly higher than the second quarter in which the 62.9% home participation rate was the lowest in 51 years.

Let’s examine four areas in the Metro Atlanta real estate outlook designed to attract millennials as they enter the home-buying market.

More and better amenities.
Millennials have come to expect and appreciate added extras in the apartment complexes in which they were living. It’s natural for them to want to have some of the same perks in the home or neighborhood in which they are thinking of moving. Examples are having larger bandwidth capabilities for social media and streaming music and videos and equipping homes with programmable thermostats and built-in USB outlets.

More search technology.
Millennials have also relied heavily on available resources in this information age. Today’s prospective homeowner almost always begins his search online. As such, they will continue to expect to be able to perform a variety of services remotely – either via an app or some other process – allowing them to negotiate and sign documents without leaving their homes or jobs.

Greater full-service offerings.
Given the number of millennials entering the housing market, the traditional role of a real estate agent is starting to change. The information age has provided consumers with a wealth of information about homes for sale. The missing piece seems to be how to aggregate or compile that information. Many real estate firms have chosen to provide better full-service offerings by not only assisting in finding or selling a home, but in addition, putting the client in contact with contractors or others to make the moving process smooth and easy for all involved.

Say goodbye to the “hard sell.”
With the focus more on full-service, as mentioned above, one of the changes in the Metro Atlanta real estate outlook will likely be that real estate agents will be able to concentrate less on the actual sales process and more on building relationships with their clients. Some real estate firms actually have prospective clients – both buyers and sellers – meet with a customer service manager first before they’re assigned to an agent. The firms report that this first point of customer interaction enables the prospective buyer or seller to do their fact-finding from a completely impartial source – without feeling like they were being “sold” anything. It’s more of an information exchange designed to make their prospective clients feel at ease in the early stages of the process.

As the Metro Atlanta real estate outlook continues to evolve and more millennials and other prospective purchasers enter the home buying arena, more changes are likely to occur. New homes currently under construction will probably have more open areas where families can be together in the same room enjoying the same activity, but yet be able to stay connected to their friends and others via their smartphones or tablets. In addition, homes will likely be built with smart-car garages equipped with electrical outlets for hybrid automobiles. Energy-efficient homes will become the norm as builders will attempt to woo millennials interested in being more environmentally conscious and more focused on sustainable, clean energy solutions.

The challenges in the Metro Atlanta real estate outlook continue to be basic housing shortcomings we’ve heard and read much about in the last 18-24 months. The number of available affordable housing units for sale still continues to lag behind normal levels. With this low inventory comes the added pressures of existing homeowners who would have normally been ready to sell and move up into a bigger, better or newer home, who have decided not to sell – simply because there are fewer homes available for them to choose from, too. Added to that dilemma is the continued rise in home prices. Most experts expect home prices across the U.S. to increase between 4.50% to 5.5% during 2017. So, the homes that are available for purchase will likely be more expensive than ever – the limited supply will probably continue to fuel what will be a seller’s market.

In addition, interest rates – mortgage rates in particular – are expected to rise during 2017. We’ve seen a slight uptick in rates since the presidential election, as a result of the growth of the stock market. Analysts say interest rates will continue to rise throughout 2017, but longer-term mortgage rates will probably not exceed 4.5%. While those rates are higher than the near-record rates of the previous 12-18 months, comparatively speaking an interest rate of even 4.5% to 5% is still a very good, affordable way to borrow money for the purchase of a home.

Despite the challenges on the horizon of the Metro Atlanta real estate outlook, 2017 looks like it has the potential to be a good year. The coming spring selling season will be the first test. If that’s successful, it could set the stage for a continued optimistic feeling on which the rest of the year will be based.

See more articles pertaining to the Metro Atlanta real estate outlook in the section of articles on Atlanta Real Estate just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.

Metro Atlanta Real Estate Trends: A Look at New Home Building

In examining Metro Atlanta real estate trends, at first glance some statistics are difficult to understand. For example, when it comes to homebuilder confidence in the December report recently released by the National Association of Home Builders (NAHB) the number reflects the highest confidence level since 2005 – a period of 11 years! In addition, the one-month move was cited as the largest in 20 years – attributed, in part, at least to the post-presidential election optimism on behalf of many NAHB insiders. Confusingly, just a day later monthly reported statistics on home construction published by the U.S. Census Bureau showed a drop of nearly 19%. The bottom line, at least on the surface, is the nation’s homebuilders are very happy and extremely optimistic, but not enough to build more single-family homes in the current market. As mentioned, the numbers – and the concepts – seem difficult to understand. Let’s take a closer look at what may be at the root of the confusion.

New home construction as it pertains to Metro Atlanta real estate trends

Experts say the two sets of numbers – builder confidence and home construction – once tracked closely together. However, in 2012 during the depths of the worst housing crash in history, the numbers seemed to distance themselves from each other – having less correlation than they once did. While builder and consumer optimism started its steady recovery, the actual homebuilding market continued to suffer. Some experts offer the theory that it was simply the result of a basic business psychology – and a little human nature. Homebuilders, because they are entrepreneurs at their core, were more optimistic during the recession than the market may have reflected. This optimism, some argue, is necessary and expected – homebuilders lacking optimism about the market’s future would’ve had to consider another profession for their livelihood. Simply put, it’s difficult – if not impossible – to be in a business and not be one of its biggest supporting cheerleaders. Still, too, some insiders say the monthly builders' sentiment published by the NAHB is slanted more towards the smaller, custom homebuilder and, as a result, the data is somewhat skewed. The NAHB website cites its surveys as being comprised of three component parts: current sales, expected sales over the next six months and current buyer traffic. The NAHB says the survey is a “weighted average of separate… indices for these three key single-family series.”

Some experts familiar with both the NAHB and other independent surveys say with different weighting the findings can favor the larger-volume nationally-known builders. One such survey, published by a well-known real estate consulting firm issued this opinion: “We asked the same three questions that the NAHB asks at the same time of 311 homebuilders overseeing 11 percent of all U.S. new home sales. Builders told us sales and expected sales are better than average, and traffic is slightly worse than average. Since the builder responses were virtually identical to the responses last month and last year, and this survey is weighted 59 percent to actual sales rather than sales expectations and buyer traffic, (we are) surprised by the sharp increase in the [NAHB] index.”

Homebuilder confidence as part of Metro Atlanta real estate trends, as it turns out, cannot only be portrayed in different ways, it is also very subjective. For example, one expert contends, if you consider the results of the NAHB survey and include surveys from businesses asking them if conditions are the same, worse or better in the face of the recent presidential election, you may find that the results are indications of the “direction” of change, not the “degree" – in other words, qualitative and not quantitative. Quantitative analysis can only be measured after the fact and typically has little to do with theory or anticipated results.

So, as it relates to Metro Atlanta real estate trends, there seems to be a much higher demand for housing compared to the existing supply of homes for sale in inventory. This fact on its own makes homebuilders more confident. It’s always nice to know any product you are manufacturing has both a built-in demand and one that is underserved. Of course, this trend has been in existence largely since the start of 2016 or earlier. But even more telling is that the overall U.S. economy has and is continuing to improve – and a number of business sectors throughout the nation are very optimistic that a Trump administration will mean great improvement. With that, the nagging question still remains: “If all that’s true, why aren’t homebuilders constructing more houses than ever before as part of Metro Atlanta real estate trends?” The answer, as usual, boils down to the basics. Check them out:

Homebuilders continue to be thwarted by a myriad of new regulations that end up costing as much as 25% of the price of a newly constructed home. In addition, labor shortages – nothing new in the new construction industry – continue to weigh heavily on homebuilders’ abilities to gear up to the degree they’d need to to meet the existing demand. Ironically, the labor shortage – primarily because it relies on a large number of immigrant workers – may continue during the upcoming Trump administration. Other factors holding builders back include the high costs of land and building materials – with little relief in sight – as there are fewer finished, construction-ready lots in the neighborhoods and subdivisions in which buyers want to live or move into. Then, there's the whole feeling of cautious optimism that comes as a result of previous housing industry setbacks – and most homebuilders are very cautious after enduring the severe housing crash of a few years ago. Lastly, as a homebuilder operating purely on a business level dealing with supply and demand and the proverbial bottom line of making a profit, by building fewer homes in a market – largely called a seller’s market – they can command a higher sales price for the homes they build, and that's one of the Metro Atlanta real estate trends that's hard to ignore.

See more articles pertaining to Metro Atlanta real estate trends in the section of articles on Atlanta Real Estate just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.

Is the Metro Atlanta Real Estate Seller’s Market Over?

Much of the real estate news over the past 12-18 months has centered around an improving U.S. housing market that’s finally on the way to recovering from the last recession. Sales prices and home values have grown steadily during that time, while home inventory levels have been near historic lows. New home construction, though brisk, has struggled to keep pace with growing demand. As we prepare for the end of another calendar year, many analysts are asking the question, “Is the Metro Atlanta real estate seller's market over?”

Let’s take a more in-depth look into answering that question.

Is the Metro Atlanta real estate seller's market over?

The simple answer is “yes and no.” According to nationwide data, experts say the Metro Atlanta real estate seller's market news making headlines next year will be that the real estate market in 2017 will be very similar to what it was in 2016. Case in point: a nationally recognized real estate website took a survey of prospective homebuyers and reported that 52% are first-time buyers – an increase of 19% from the previous year. Real estate professionals say they, too, expect a larger number of first-time buyers entering the market next year, but express caution that with those new buyers comes challenges to both the real estate market and the buyers themselves.

What has caused the forecast for more first-time homebuyers to be looking into the 2017 market? Several factors: A seemingly stronger job market and continued lower interest rates seem to be the real motivators. Plus, rents have risen almost as steadily as home values, prompting a number of first-timers to consider buying as a more sensible financial decision than renting.

The influx of first-time buyers will bring challenges – some of them of very real concern. Low home inventory is expected to continue to plague the delicate balancing act of supply and demand. Some experts say to absorb the expected 19% increase in first-time buyers, the market needs a minimum of six months of supply. However, the market has had 49 consecutive months of less than six months home supply. So, experts say, the Metro Atlanta real estate seller’s market will probably continue, as well as throughout the nation as a whole – with some areas or regions seeing slight shifting to the contrary.

So, where will seller’s markets continue?
Cities throughout America where the population continues to increase at a steady pace are the likely candidates for seller’s markets to continue. In these metropolitan areas, housing simply won’t be able to keep up with demand. When that happens, the fewer available homes on the market become more valuable and the seller’s benefit.

In some markets, real estate professionals report a slight increase in housing inventory which has caused asking prices to be more reasonable. In addition, some sellers are offering more concessions in negotiations such as paying partial closing costs or repair allowances. However, some of the increased inventory is artificial, in a sense, because those sellers aren’t committed to selling – they are simply testing the market to find out what level of interest there may be in buying a home at a certain price point. The result, experts say, is a dilution of the so-called Metro Atlanta real estate seller's market due to a perceived glut in inventory.

What about buying power and financing?
As always, chances are if a buyer qualifies for a mortgage loan he should still be successful in buying a home in most markets – even in a seller’s market. Experts recommend using some strategy in planning your purchase. Here’s why.

According to the website survey referenced above, over half the home shoppers responding planned to purchase in seven months or so – in the spring and summer – the housing market’s most popular time to buy. Real estate professionals say if you want to avoid competing offers and not engage in bidding wars, consider buying now or either wait another full year. That way, the market is a little leaner and there aren’t as many buyers – first-timers and others – scrambling for a limited supply of homes on the market. One expert likened the strategy to shopping for Christmas presents in, say, September. You’ll likely have everything available you’re looking to buy – without the hustle and bustle of last-minute shoppers and long lines. Given the existing home supply challenges with low home inventory, which experts say probably can’t and won’t change substantially in 2017, smart buyers could enjoy reasonable prices and less competition by buying this winter or waiting until next fall.

If you’re not ready to enter the market at the present time – because you don’t have a down payment or a lease that doesn’t expire until next spring – remember that the real estate market is cyclical. The market will likely cool off in what has been the most active areas. What that will ultimately mean is homebuyers will probably again have the upper hand one day. One expert had this to say about market shifts.

“Balanced markets don't really exist for a long period of time – they’re really only transitional. It could be six months or a year, but at some point in time even the hottest of markets… head into a buyer’s market.

So, what’s the bottom line?
It’s likely, as experts agree, that the Metro Atlanta real estate seller's market will feature headlines including slight increases in interest rates as a result of a Federal Reserve move in the next few months. In addition, now that the elections are over there will be less daily concern about a U.S. economy in flux, although we’ll all keep a watchful eye on foreign trade and its impact on the global economy over the next year or two. Lastly, though the home ownership participation rate has been the lowest in decades, it appears to be climbing slightly, giving real estate professionals and economists hope for greater increases in 2017 and years beyond.

See more articles pertaining to a Metro Atlanta real estate seller's market in the section of articles on Atlanta Real Estate News just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.

Buying Metro Atlanta Investment Real Estate Properties

In most parts of the United States, real estate is – over time – a good investment. And while we all know that to be true, often this nagging question remains unanswered: “How do I get started buying Metro Atlanta investment real estate?” For some millennials and others the answer is, “Just do it.” Let’s look at how you can make a start in building your Metro Atlanta Investment real estate portfolio.

Financial Considerations

Though it seems somewhat ironic to use millennials as a segment of the population perhaps best suited to start a modest Metro Atlanta investment real estate portfolio, let’s look at a few salient points. Millennials comprise roughly 50% of all current homebuyers in the marketplace, according to the Zillow Group Consumer Housing Trends Report. And given that most millennials buy their first homes or starter homes with the intention of living there fewer than seven years, potential real estate investing could be in their future. Why? Millennials or other first-time homebuyers are in a unique position to buy their second home and maintain their first as a rental property. This can most often be accomplished by leaving the owner-occupied original mortgage intact without selling the property. Hopefully, the mortgage was acquired with a modest down payment and is accompanied by a low interest rate.

For a Metro Atlanta investment real estate portfolio to be successful two factors need to be considered...

Obviously, if a borrower is able, it’s much better to keep the first property and rent it rather than trying to purchase a non-owner-occupied rental property. Financing for rental property usually requires a higher down payment – 20%-25% – and will likely have a higher interest rate, as much as .50%-.75% or more. In summary, it will almost surely cost less to arrange for your current house to become a rental property and purchase a second home to use as a primary residence than to buy a second property for use as a rental home.

Quite naturally, in order for this growing Metro Atlanta investment real estate portfolio to be successful two factors need to be considered:

1 ) You must be able to find a tenant for your first home. This is important not only for the additional rental income to pay for the mortgage, but many millennials or first time homebuyers may find it difficult to qualify for a mortgage on the second home unless they have a tenant under lease.

2) You must be able to come up with the necessary down payment for the second home. With low down payment financing available for as little down as 3% in some cases, this is possible. Most first time homebuyers rely on the equity from the sale of their first home to be able to afford the down payment on their new one.

Tax Advantages

There are certain tax advantages to be enjoyed by renting one of your properties. We recommend discussing them with an accountant in order to make sure you’re up on the latest tax rules regarding Metro Atlanta investment real estate. As a normal rule, the best tax advantages come in the form of depreciation of the rental property along with being able to deduct both the mortgage interest and the maintenance expenses of the rental property.

Choosing the Best Rental Property

If you’re contemplating turning your first home into a rental property, it’s probably best to consult with a Metro Atlanta investment real estate professional first to better understand the market and establish a strategy of what you want to accomplish. In addition, there are considerations to discuss regarding whether there is a viable rental market for your home. Experts say homes with one to three bedrooms are likely to rent more easily and more often than larger homes. Lastly, and the real estate rental professionals can better help with this, it’s important to understand who the typical tenants are in your market as well as the type properties they usually rent. That will give you insight as to where to advertise, what rents to charge, what terms to ask for and other decision-making factors.

Assessing Rental Rates

As is the case with rental properties across the country, Metro Atlanta investment real estate rental rates have been on the rise in the last year or so. In addition, rental rates vary widely in the single-family home and condominium rental market. Most real estate professionals agree that one of the most challenging aspects of renting a home is being able to establish a rental rate low enough to be competitive in the market yet high enough to pay the mortgage and related expenses while making a small profit each month. Again, consult your local Metro Atlanta investment real estate rental professional for the most current information on what the market will bear and what you can expect to rent your home for.

Final Thoughts

Aside from the financial considerations, one of the most important things to remember about renting out your first home is becoming a landlord. You’ll need to budget both your time and money in order to be able to take care of your tenant’s needs as they arise. Of course, you can hire a property management company to handle the typical chores of a landlord, but there are expenses involved with such an arrangement. Still, it may be worth looking into to see if the rental market will enable you to cover a portion of the rental management fee by raising the rent.

Most experts say when it comes to starting a Metro Atlanta investment real estate portfolio comprised of rental property, “buy and hold” is usually a good philosophy. However, there are precautions you should take if you’re thinking about making the leap. If you find yourself in a sellers market, just realize that it may be more difficult to buy the second home without getting the needed equity out of the first. However, there are other options such as refinancing.

See more articles pertaining to real estate in the section of articles on Atlanta Real Estate just below Atlanta Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.

Buying Metro Atlanta Real Estate: Metro Atlanta FSBO Tips

Most real estate on the market is comprised of homes listed by real estate professionals. In addition, some properties may be available for sale directly by the owner. FSBO is the industry acronym for “For Sale By Owner.” One of the common misconceptions with Metro Atlanta FSBO properties – or FSBOs – is the myth that because the sale doesn’t involve a real estate agent it will somehow be simpler. This is rarely the case. Let’s examine a few key points to keep in mind if you’re in the market for Metro Atlanta real estate and come across a home that is advertised as a Metro Atlanta FSBO.

Most Metro Atlanta FSBO sellers will still work with your agent.

Typically, savvy home sellers are aware that most buyers they encounter have a close relationship with a buyer’s agent. As such, they will usually make arrangements to ensure the buyer’s agent will be paid for their efforts. Dayton area real estate buyer’s agents are important participants in the home buying process. If you’re interested in taking a closer look at a Metro Atlanta FSBO, consider calling us to make the initial contact with the seller on your behalf.

A home is a home, regardless of whether it’s a FSBO or not.

Just because a Metro Atlanta FSBO is not listed with an agent doesn't mean that seller won't work with an agent.

Just because a home is listed for sale by the owner doesn’t mean it should be treated any differently than a home listed by a professional real estate firm. The biggest difference between the two is the greater likelihood that you’ll be meeting, talking and negotiating directly with the seller. So be prepared. Because a home sale is often an emotionally challenging experience for some sellers to go through, be ready for some hurdles – and try your best to take them in stride.

If you’re truly interested in a Metro Atlanta FSBO home, you’ll find a way to work around the drama. Remember, lean on your agent for assistance and expertise. In addition, if you find it necessary to view the home without the owner being there, just ask. While it’s always a little uncomfortable for owners to have prospective buyers “snoop around” by themselves or with their agent, if you’re selling your home as a FSBO it goes with the territory. Try to put yourself in their shoes and understand how you might feel if the roles were reversed. Then, use that to your advantage by assuring the seller that you simply want to take some extra time alone to envision your furniture and your belongings in what may end up being your home. Once the seller understands your insistence and reasoning, they will likely be more open to letting you have all the time you need – especially if it means the difference in making the sale.

The law is the law – and it applies to all homes equally.

Regardless of whether a home is being sold as a FSBO or not, real estate sales laws still apply. Sellers have an obligation to disclose existing issues about the home to the buyers. In addition, the seller could also be bound to have the home inspected and perform certain repairs. Unfortunately, many Metro Atlanta FSBO sellers are rookies when it comes to selling homes, and they simply aren’t aware of the laws or common industry practices. Again, rely on your agent – and your own instincts – to determine if a seller is shirking his responsibility or making it more difficult to inspect the home than it should be. It could be a tell-tale sign that the seller knows something about his home that he doesn’t want you or your agent to find out about. If that’s even remotely the situation, keep looking. Life is too short to deal with difficult people, and money is too valuable to take a risk on a home that may be trouble in the future.

Anticipate inflated asking prices.

If there’s one factor that tends to remain consistent when owners try to sell their homes directly, it’s overpricing. Not having a knowledgeable professional real estate agent to consult often means sellers price their homes unrealistically. They tend to dismiss the market comparables and any other recent sales data and erroneously assume their home is worth more than the others in the same neighborhood. You'll often hear rationalizations or justifications expressed by owners that go something like this: "Our home is the nicest one in the neighborhood." While it's normal for any homeowner to have pride in their home and want to get top dollar when they sell, the cold hard truth is more like, "Your home is pretty much like all the others in the neighborhood – some are more attractive, some less." It’s not necessarily greed that motivates them to inflate their asking price, it’s more a case of just not knowing the market – and the Metro Atlanta home selling process. Again, they’re rookies, and just like in the big leagues, rookies make mistakes.

If you really like the home, once again rely on your own agent to assist. By providing comparable sales information of similar homes in the neighborhood maybe your agent can convince the seller to see his price is too high. In addition, if the home has been appraised already – or if you can perhaps negotiate having an appraisal done – you can use that as a closer representation of the home’s value. If either of those ideas fail, keep looking. A stubborn owner isn’t worth the headache, and there are likely other homes on the market that are priced where they should be.

Just keep this in mind: A Metro Atlanta FSBO home is just a home, it just happens to be listed for sale by the homeowner. Discuss the home with your agent and get his or her thoughts and input. While the negotiation process may be a little different since the sellers are going solo, remember there are still certain obligations incumbent upon the sellers. Don’t be intimidated by the fact that the seller is listing the home directly – as mentioned above, that doesn’t necessarily mean he knows more about Metro Atlanta real estate than you – and he certainly doesn’t know the process as well as your professional agent.

Metro Atlanta Real Estate – Which Comes First, Buying or Selling?

The Metro Atlanta real estate market has probably changed quite a bit since the last time you were part of a home sale closing, if ever. Not only has the housing market changed dramatically in recent years, but so have mortgage lending requirements. In addition, as a homeowner your needs and desires for your next home have probably changed, too. So, if you’re looking to move up or move out of your present home you’re likely in the middle of a well-known dilemma: Should you sell your current home first or buy your new one? Let’s take a closer look at that situation and consider a few ideas.

Metro Atlanta Real Estate – Making the Right Move

How to know the right move when it comes to Metro Atlanta real estate.

A logical place to start to analyze the problem of whether to sell first or buy first is to examine just how much risk you’re willing to take. If you fancy yourself a veritable Las Vegas gambler that goes “all-in” every chance he gets, you may decide to assume a greater risk than some people. So, if you elected to buy your new home before you sold your existing home, the possibility of having two house payments at the same time may be less stressful for you than for others. Conversely, if you felt that situation would lead to sleepless nights you’d probably be more comfortable – and well rested – by taking a more conservative approach. That will entail selling your current home first before you started your new home search.

In addition to your risk tolerance, there are some other factors that could potentially sway your decision. Because Metro Atlanta real estate prices have risen while housing inventory from which to choose continues to be thin, it’s possible you could sell your existing home but not be lucky enough to find a new home immediately. What could make matters worse is, if the added stress and pressure to rush to find a new house led you to settle for something less desirable than you wanted.

Metro Atlanta real estate experts suggest you ask yourself these important questions to more fully understand the timing of your current home’s sale and your next purchase.

Can you afford two mortgage loans at the same time?

Carefully examine your income and obligations to determine, are you able to comfortably afford two mortgage payments at the same time? If the honest answer is “no,” then do yourself a favor and sell your current home first. A mortgage lender will ask the same question and perform the same financial analysis. Remember, just because you can afford it, doesn’t mean you should.

Some lending institutions offer bridge loans – short-term loans designed to allow flexibility between selling one home and buying another. The normal term is six months to a year.

Another consideration is where your down payment will come from. Do you have enough money in a savings or investment account you plan to liquidate? If not, are you planning to use the equity in your existing home? While some lenders may be willing to provide you with a 100% conventional loan – enabling you to buy the new home without first selling your current one – some lenders may not.

How soon do you want or need to move?

Often the biggest deciding factor of what to do first in the selling-then-buying versus the buying-then-selling conundrum is how quickly they want or need to make the move. If you’ve taken a new job that requires you to relocate out of state, it may be best to put your home on the market first. That way, as you make plans to move and begin your new home search if your home sells it will make your relocation easier and less stressful. However, if you're simply shopping for a larger home or want to move into a nicer neighborhood it could be better to not sell your home immediately. Wait until you find a new one that best fits your needs. This is where the advice of an experienced Metro Atlanta real estate agent can be invaluable.

Are you aware of the newest regulations?

If it’s been awhile since you’ve bought a new home with a mortgage, you’ll need to be aware of some new federal regulations that took affect late last year. The TILA-RESPA Integrated Disclosure rules now require mortgage lenders to give new borrowers two forms – one at the beginning of the loan application process, and one upon loan approval. The importance of these forms is this: The Closing Disclosure form must be given to the borrower no less than three days before the loan closing. You can no longer expect to close on the sale of your existing home one day and close on the new home purchase the next.

The Closing Disclosure requires the lender to have all the integral parts of the mortgage loan finalized and approved prior to the three-day period. The result often means selling one home and buying the next can be a little “iffy.” Closing delays are a likely possibility. Know what to expect and rely on the advice of your mortgage lender and Metro Atlanta real estate agent. It can help make the process flow smoother, without snags or delays.

Do you need a negotiating advantage?

Some experts say that purchasing your next home before selling your existing one has distinct benefits. Make an offer to purchase a home without the often-used contingency on the sale of your current home. It will likely be considered more favorably by most sellers. So, if you can swing both loan payments or can get a bridge loan or other financing, go for it!

Do you have somewhere to move while you wait to buy a new house?

As we’ve discussed, a tight housing market with low inventory gives you little from which to choose. As a result, you could find yourself without a home if you sell prior to buying something else. Before making a move requiring you to find a new home quickly or renting a place, think it through. Don’t panic or rush into buying a home you don’t really want. Take your time and make a plan. Remember, too, that it’s okay to rent while you’re looking to buy something new. Be aware that most rentals require at least a six-month lease – and many require a year.

You can find more articles pertaining to Metro Atlanta real estate in several categories below Atlanta Real Estate Categories in the column to your right.

We also post tips daily on Facebook and Twitter and would love for you to follow us there, too.

Metro Atlanta Real Estate: Judging the Book’s Cover

Buying Metro Atlanta real estate is an emotional process. Many buyers see a house they fall in love with and decide in their heart and mind that's the home they want to buy. If you find what appears to be the perfect home for you and your family, it’s a good idea to take a more detailed, in-depth look at the home’s exterior. The old adage, “Don’t judge a book by its cover” doesn’t apply in this case. For homes in the Metro Atlanta real estate market, it’s important to give the outside of the home a thorough inspection. By doing so, the “cover” may, indeed, give you a better idea of the entire “book.” Let’s take a look at some of the exterior considerations to keep in mind when looking for a home to buy.

Metro Atlanta Real Estate – Check the Outside

Trees and Foliage

Metro Atlanta real estate always needs a close up inspection of the exterior of the home

Take a closer look at the trees surrounding or near the home. Pay particular attention to how close the trees are to the home’s foundation. As those trees continue to grow, the roots can expand and cause problems to the foundation. In addition, other areas like concrete or paved walkways and driveways can be affected. Furthermore, if an older tree is removed it could create a void when the roots decay, resulting in a drop in the foundation.

To ensure you can avoid potential problems it may be a good idea to seek the opinion of a foundation expert during the inspection process. Enlist the aid of an experienced tree expert of arborist to evaluate the health of trees that may affect your home.

In addition, those beautiful mature trees may have limbs that extend over the home’s roof. Have the home inspected for any signs of damage to the roof shingles or eaves. Squirrels, possums, and rodents often use tree branches to get into accessible areas of your home. When that happens, they can enter your attic through the smallest of openings in the fascia or soffit. If the home you’re looking to buy has foliage extending over its roof, consider asking the seller to prune the tree limbs. It’s also advisable to inspect the shrubbery that may be in direct contact with the house to make sure it doesn’t contain evidence of termites or carpenter ants that may have gained easy access. Naturally, to be completely sure, it’s always good to have a professional termite or wood-destroying insect inspection and treatment.

The Home’s Foundation

Check the foundation of the home for cracks. Some cracks are to be expected and most will be minor in nature. However, cracks allow moisture in the foundation and can cause deterioration – especially in climates subject to freezing temperatures in the winter.

Experts suggest that if you encounter foundation cracks you should have a contractor inspect them to determine the degree of severity. If you decide to move forward with the home purchase, the cost of the repairs – if necessary – could be a factor in the price negotiation.

Lastly, in areas prone to foundation problems, a potential purchaser should take note of the grade or slope of the soil around and against the house. The foundation should be exposed by a minimum of two inches and it should be sloped away from the house. This ensures that rainwater runs away from the foundation and doesn’t collect or pool against the home.

A Swimming Pool

If the home in the Metro Atlanta real estate market you’re interested in has a swimming pool, there are several questions you should ask:

How old is the pool lining?

Has the pool liner been resurfaced?

How old is the pool equipment?

For a more in-depth inspection, contact a professional pool company. While a swimming pool can seem like a wonderful amenity for a home, it can also become an expensive and problematic feature for prospective home owners.

What if You Find a Problem?

If you find an issue or two with the home’s exterior, it doesn’t necessarily mean you shouldn’t buy the house. Compile an analysis of the home’s plusses and minuses. Consider the problems objectively, taking into consideration the cost to remedy them. Then, armed with that information you can either request that the seller make the necessary repairs or use that in the negotiating process. In many cases, the seller may discount the sales price based on the estimated cost of substantiated repairs a buyer may have to make. In addition, some lenders may require certain repairs be made before they provide final approval of the financing.

What if Everything’s Good?

If everything regarding your exterior inspection checks out, you should still keep in mind the future maintenance of the home.

• Continue to keep foliage and tree branches pruned

• Determine what type of grass your yard has and care for it accordingly

• If you have a lawn sprinkler system, check it regularly

• Inspect you landscape lighting

Remember, Curb Appeal is More Than Just the Obvious

Curb appeal is important in evaluating Metro Atlanta real estate, but curb appeal is more than just an attractive mailbox or driveway. There are many other components that should be considered and inspected to make sure your prospective home is all you want it to be. Be cautious, inquisitive and have an expert inspect the home. A little knowledge beforehand can save a ton of frustration and expense after the fact.

You can find more articles pertaining to Metro Atlanta real estate in the real estate section of our site below Atlanta Real Estate Categories in the column to your right.

We also post tips daily on Facebook and Twitter and would love for you to follow us there as well.

Metro Atlanta Home Selling: Your Next Move

Metro Atlanta home selling should be a happy occasion. Often, however, the next step – moving out of one home and into the next – can be stressful at best and sometimes downright traumatic. Taking a few necessary precautions can make it less worrisome, maybe almost enjoyable.

Metro Atlanta Home Selling – A Moving Experience

Most people dread moving because of the unforeseen problems that seem to occur at every turn. A torrential rain comes as soon as the movers are loading the truck. Your car loaded with items you wanted to personally transport has an untimely flat tire. You know the drill… these things never happen at a good time, but why do they happen on an already-stressful moving day?

Following the Metro Atlanta home selling experience, most of the common moving nightmares fall into one of these three categories. Let’s take a look at what usually happens and how we can best avoid them.

Metro Atlanta home selling should be a happy occasion, but it doesn't always turn out that way.

Incompetent Movers
You'd think in this day and age, a reputable moving company wouldn’t have incompetent or untrained people serving its customers. However, as with any other business, it happens. It’s not uncommon for many moving horror stories to revolve around unscrupulous, inexperienced or downright bad movers.

Metro Atlanta home selling – and especially moving – is a time-sensitive process. As such, when movers are late or – worse yet – don’t show up the resulting domino-effect can be frustrating and borderline disastrous. If you’re an understanding customer, you may give them a certain window of time before you call the moving company and complain. More times than not, you’re met with excuses about why your movers are running late or haven’t shown up yet. These excuses range from traffic jams to mechanical breakdowns to delays on a previous move. No matter the reason, you’re ready to move and they aren’t there.

Movers who are inexperienced, untrained or careless add to the stress, worry and anger levels. More frustrating for homeowners having just completed the Metro Atlanta home selling process is that the end may not be in sight. Just when you think the hard part is over, the moving process often ends up being the worst experience.

A moving crew shows up with an undersized truck – despite your best description of what was needed to be moved, how many rooms of furniture, packed boxes, etc. Didn’t they listen when they booked your move? How can they be so incompetent and stay in business?

You watch in horror as the movers scratch your brand new mahogany dining room table and break your grandmother’s antique mirror. And those are just the damages you can see – there’s no telling what other horrors await when they move your belongings into your new home.

There is good news, however. There are relatively easy ways to avoid the moving pitfalls. Spend some time researching your movers prior to hiring them. Make sure they are licensed and insured. Ask for references and contact them to get their feedback. Check with the local Better Business Bureau or Chamber of Commerce to find out more about their business reputation and professionalism. It’s probably a good idea to purchase additional insurance for your possessions, depending on the moving company’s liability limits. Consult your insurance agent for more information.

Traffic Problems
Things that occur on the road to and from your move can often cause or contribute to added stress.

Traffic jams can delay the moving truck, sometimes to the point there may not be enough time to handle the move on a particular day. Again, the domino-effect means since you can’t move out on time, the floor refinishers can’t get in the house to do what they need to do for the new buyers, and the new buyers can’t move until the floors are completed. Often, a few hours delay may result in several days of additional delays – and possibly additional expenses.

Traffic accidents, of course, mean the moving truck will have to wait until the damaged vehicles are moved and traffic is returned to normal. Depending on the time, location and severity of the accident this could take an hour or longer. Worse still is if the accident actually involves the moving truck carrying your possessions. Then, not only do you have the delay to contend with, but any damages that may have occurred.

Mechanical failures or breakdowns are fairly common in older moving trucks due in part to the number of miles they are driven and the wear and tear they endure. In the event of a breakdown, you’ll have to wait for the moving company to send a second truck to transfer your furniture and other possessions. That creates additional delays and increases the chances damage may occur during the transfer.

Parking problems, surprisingly, account for added stress levels during a move. Especially in the case of a move to a downtown apartment complex where parking is limited or restricted, the moving truck may have to wait for an appropriate parking space. An alternative – though not a good one – is for the truck to park farther away than expected, thereby slowing down the moving process and potentially causing you to have to pay extra for the delay or long-carry charges.

While there’s virtually nothing you can do to prevent traffic accidents or breakdowns, it may be possible to reserve a parking space accessible to your new location. In addition, you can choose a moving company with experienced drivers and whose vehicles are in good operating condition.

Poor Organization
One way to potentially avoid most moving problems following your Metro Atlanta home selling is to plan as carefully as possible. A plan including each step of the relocation process complete with attention to detail and an allowance for delays may give you additional peace of mind. Although it’s impossible to predict and plan for every potential problem, expecting the unexpected is usually a good preparation and planning tool. When possible, have a back-up plan just in case.

Additional examples of poor organization include packing problems or not being prepared when the movers arrive. The list can range from forgetting the piano won’t fit through the front door to not having the various boxes labeled properly.

In addition, paperwork problems can often lead to additional delays. If you forget to transfer the utilities, when the movers arrive at your new home you may not have electricity or water.

Lastly, safety issues should be of utmost concern during the moving process. Remember, there will be many items that will be out of place. That could mean potential trip, slip and fall hazards. Plus, many homeowners find themselves distracted when negotiating steps, stairs or when driving in unfamiliar surroundings.

Hopefully some of these tips will help you have a smoothe moving day. Remember to also Find us on Facebook and Follow us on Twitter. We post tips there each day as well.

Metro Atlanta Real Estate: Smarter Homes

The Metro Atlanta real estate market contains a relatively tight supply of homes for sale. During market conditions in which demand exceeds supply, you'd ordinarily assume that the chances of selling your home would be pretty good. However, homeowners selling older or outdated homes are finding it a little more difficult to sell. To combat this, smart sellers are turning to smart technology to attract prospective buyers. Although we never work for sellers or list property for sale, and always represent home buyers only, we know and can recommend the very best listing agents anywhere to help you with selling your home. This article will examine some of the smart home technology available in the Metro Atlanta real estate market.

Making Metro Atlanta Real Estate Smarter

Selling your home is a competitive undertaking. No matter whether you're in a seller's market or a buyer's market, the homes that get the most attention are the ones that offer the newest, most up-to-date features. If you're over the age of, say, 50 you may remember how "cool" it was for the new refrigerator in your home to have a built-in ice-maker. How about a two-car garage with an automatic door opener? Even homes equipped with motion-detector floodlights were considered "in" just a couple of decades ago. That's why some sellers are electing to ramp up their homes with a little hi-tech to garner attention. They want to show prospective purchasers that their homes are a little more "state-of-the-art" than some homes in the same age range or price range.

Metro Atlanta real estate is now featuring smarter homes

According to a survey published in January by Harris Polls for a nationally-known real estate firm, roughly half of all American homeowners either enjoy some type of smart home technology or have plans to invest in it during the remainder of the year. In addition, 70% of survey respondents said they were so satisfied with the purchase or installation of their first smart home product that they were likely to purchase another one.

One of the popular misconceptions about smart home technology is that retrofitting an out-of-date home is too difficult a task or too costly. The truth is, one of the attractive features of some of the technology is the ease of installation and the comparatively affordable cost. More than 50% of current homeowners agreed they would probably install smart home technology because they felt it would help sell their home quicker. To quantify that response in a dollar amount, 65% of respondents surveyed said they would likely pay $1,500 or more to bring their home into the 21st Century. Experts say most homes won't require that much of a smart home investment.

Real estate professionals say a few hundred dollars is enough to add enough smart home technology to make a difference. Citing the gradual lowering of the prices of some of the technology over the past few years, they say it's easily affordable for most sellers interested in positioning their homes for sale. Items such as smart door locks or security cameras can be purchased for less than $500. And smart thermostats are popular with buyers that like the "set it and forget it" advantages of saving energy – and money. More complete home automation systems can be a little pricey, but often pays for itself because of the attractiveness to a potential buyer.

Smart home technology experts in the Metro Atlanta real estate market suggest these five areas as "smart home starters:"

A strong Internet connection and Wi-Fi network
A smart doorbell • Smart door locks
Smart climate controls
Smart lighting and lighting controls

Smart technology is no stranger to newer homes and newly built homes. Now, as a result, homeowners choosing to include it into existing homes is becoming increasingly popular, both for the convenience of their owners and in an effort to provide an advantage when the time comes to sell.

Surprisingly, the rate of older American homeowners acquiring some type of smart home technology outpaces younger owners. Forty percent of homeowners aged 65 or older who own smart home products also have smart climate control technology. Comparatively, only 25% of millennials (aged 18-34) have those products.

Real estate agents remind sellers that buying a home is very much an emotional decision. If prospective buyers are able to "connect with the house" through various features that help make the home stand out above the rest, they are more likely to move it to the top of their short list. Smart technology can – and does – give the buyer the impression that the house is modern and is likely well-maintained.

See more articles pertaining to Metro Atlanta real estate in the Atlanta Real Estate section of our site below Atlanta Real Estate Categories in the column to your right. As always, you can find information here on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and of course, all the latest Metro Atlanta real estate news that affects all of these categories.

Remember, we also post tips daily on Twitter and Facebook. Check us out there, too.