|
|
|
Spring Buying Season Offers Opportunity For Sale - 2007-02-03 |
Ok, it's February. I know that the weather is yucky. And I know that no one
has looked at your house since New Year's Day. And I know your agent won't
even return your calls. And I know there are a dozen other houses for sale
just like yours in the subdivision. OK, so I know all that.
Here's the good news: I believe that this upcoming spring selling season
will bode well for the Atlanta area, and that there is a good chance you can
sell your house, if you make plans for the sale now.
In the business of real estate sales, there are simply no guarantees, and I
can't promise you a spectacular rush of multiple offers. But my analysis of
the market suggests a solid spring selling season for the Atlanta area.
There are several reasons why.
First, interest rates are surprisingly low. With thirty year fixed rate
loans still hovering around six percent, home ownership is still affordable.
Many industry watchers, including me, believed that the push by the Fed to
raise rates would eventually trickle over to real estate home loans. But it
hasn't happened.
Next, compared to other major metropolitan areas, Atlanta continues to be a
bargain on the national stage. Economists at the National Association of
Realtors recently estimated the national existing home resale price at
$224,900, while Atlanta is reported as a bargain with a median resale price
of around $176,100.
This comparison is even more favorable when you look at the median selling
price of a home in the northeastern US at $276,000, and the western states
at a stunning $349,000. And buckle your seat belt: the median selling price
for a resale home in San Francisco is a staggering $749,900.
Finally, it appears to me that we are finally seeing a return to the normal
real estate markets we experienced in Atlanta prior to the boom times of the
past decade. In more normal markets, winter in Atlanta was typically a time
for slower sales volume, followed by a beautiful spring and a surge in
buying activity, for both new and resale homes.
I believe this will happen in 2007 because we are still creating jobs,
people are still moving here, and entry level homes are still financially
attractive and affordable. If the entry level homes can sell, then everyone
up the ladder can hope to see a sale as well.
So how can you take advantage of this return to a normal market?
Here are some ideas you may not have considered to put your house's best
foot forward:
* Spend the money now to put your home in excellent condition.
Even though builders are finally pulling back and new home inventory is
declining, there remains a backlog of new homes to sell. Since you are
competing with new homes, yours must be ready to move into.
Buyers today are not willing to purchase a home with worn and smelly carpets
in exchange for a "carpeting allowance," even though that solution is easier
for you. Instead, choose a neutral color and install a medium grade now.
In fact, I strongly recommend that you visit all the new home subdivisions
in your community to see exactly what you are up against. It's called
comparison shopping, and I assure you that your prospective purchaser is
planning on doing exactly the same thing this spring.
* Contact several home lenders, and see what special financing package you
might be able to offer. For example, if you agree to pay two percent of the
loan amount up to a dollar limit, a lender might, in turn, offer your buyers
reduced closing costs as well as a reduced interest rate.
This technique has been used successfully by home builders for years,
especially in entry-level home sales where buyers are payment sensitive.
Also, make it easy for prospects to reach your approved lenders by providing
after-hours contact information.
* Have your listing agent offer a bonus to any agent who brings a successful
offer. I know it sounds surprising, but it's simply human nature.
I once sold a new home to a young couple in Stone Mountain. The builder was
offering a free black & white television to any agent who sold a house in
the subdivision during the month of January. Even though I was unaware of
this offer when I first showed the prospects around, I was delighted to take
home a free TV.
Today's equivalent might be a LCD high definition TV or a gift card to an
electronics store. Whatever it is, you can be sure the agent will know about
it and appreciate it. And a fancy TV is more fun than a wad of cash.
* Finally, it's important that you price your home to sell, and that you
justify your price.
My recommendation is that you ask your agent to help you do research on the
most likely selling price, and that you gather data regarding recent home
sales in your neighborhood. This can come from any number of sources, but
your agent has access to the most comprehensive database through the
multiple listing service.
Then contact a licensed appraiser, and tell them you are seeking an estimate
of value for marketing purposes, and that you have some data you would like
to share with them before they do their own research. You are certainly
entitled to tell the appraiser what you believe your home to be worth, but
you may not dictate the outcome of their appraisal.
If the appraisal comes back at a price you can live with, I recommend using
it as a marketing tool in all your advertising. Unless you can back up your
asking price with a recent appraisal, you are simply making a stab in the dark. And if the appraisal comes in low, you are always free to pay for it,
dispose of it, then try again.
However, my experience has shown that most professional appraisals tend to
be in a fairly tight price range, and a major movement in value is unlikely.
Regardless of how much we want a value to be higher, hoping won't make it
so.
Whatever you do to get ready for the spring selling season, now is the time
to do it. I can't guarantee that your home will sell, but I can guarantee
that spring is coming.
|
|
Upcoming Events
John Adams Presents
LANDLORD SURVIVAL TRAINING
with John Adams
Tuesday, February 28th
Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.
Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.
Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.
For more details and to register click HERE
PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th
One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.
As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.
At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.
In this 3 hour information packed seminar, John will teach you how to:
1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary
If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.
For more details and to register click HERE
|
Resources