Keller Williams Realty Atlanta – Peachtree Road

Atlanta Homes For Sale – Atlanta Real Estate News - Atlanta Home Buyers

Shipshape Sells – House Condition Matters!

Atlanta Home Sellers, do you know that Atlanta Home Buyers have the upper hand in this real estate market? Especially among move-up buyers in Atlanta, willingness to purchase a fixer upper has been reduced to a slim margin of the market. That means the Atlanta homes that sell will be those in shipshape condition.

A recent KW Research study revealed that 49% of move-up home buyers bought a home in excellent condition with another 40% going for good condition.

The most common updates among sellers:

·         Paint – 44%

·         Flooring – 25%

·         Lighting Fixtures – 20%

How much did they spend? Half of sellers spent at least $100 on updates in preparation to sell and a quarter of sellers spent at least $2,000.

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Keller Williams Realty Atlanta – Peachtree Road

Thinking About Buying a Distressed Property in Atlanta? 

Read Our Distressed Property eBook

 

 

Distressed Properties eBook

View more documents from Keller Williams Careers.

 

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Keller Williams Realty Atlanta – Peachtree Road

 

You Think The Homebuyer Tax Credit Has Passed? 

Think Again!

As was mentioned in the KW Atlanta Peachtree Road Office sales meeting this morning, let’s just think of the homebuyer credit from a different perspective.  The average of the 30 year fixed rate mortgage from 7/1/2000 through 7/1/2010 is 6.75%.  Today we are at 4.50%
 
How Much Does That Save a Buyer?
 
On a loan amount of $250,000, the principal & interest at the past 10 year average rate of 6.75% is $1622/month
The principal & interest at 4.50% is $1267/month.  That is a savings of $355/month.  Over the average stay of 5 years in a home, that creates an interest savings for the 5 year period of $21,287.  This certainly makes the expired homebuyer tax credit pale in comparison.
 
How Can I calculate the Savings for a Specific Loan Amount?
 
Regardless of the loan amount, the difference in interest rate will save you interest payments of 8.51% of your loan amount over a 5 year period OR it will save you interest payments of 1.7% of your loan amount per year.  As an example you can apply at any price point, a loan amount of $150,000 will save you $12,765 in interest payments over a 5 year period ($150,000 x 8.51%) or $2550 per year ($150,000 x 1.7%).
 
How Can FHA Loans Help Me 5 Years From Now?
 
Another talking point for potential buyers is regarding FHA loans.  FHA loans are ASSUMABLE and that can be a real win situation for homebuyers today.  A buyer who obtains an FHA loan today with a minimum down payment of 3.5%, who decides 5 years from now to sell may end up with a tremendous market advantage when they sell.  Let’s assume a home purchased today at $175,000 increases in value 2% per year for the next 5 years.  Value in 5 years is approximately $193,200  Assuming the borrower made the minimum down payment of 3.5% when they purchased and including the principal reduction they made over the 5 years, they probably have a payoff of approximately $153,400.  The loan balance of $153,400 would be assumable at the initial rate of 4.5% to the new buyer which would require the new buyer to make a down payment of 20%.  If current interest rates in 5 years are just average at 6.75%, that would make the home extremely attractive to have 4.5% financing available in a 6.75% market – especially if you are the listing agent!!

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Keller Williams Realty Atlanta – Peachtree Road

Keller Williams Realty’s Real Estate Market Update

This Month in Real Estate Video Report for U.S. Market – June 2010

Commentary:

The housing sector continues to show signs of recovery. Together the tax credit (which expired at the end of April), the more upbeat consumer confidence, and favorable market conditions all contributed to bolstering April’s sales activity – with existing home sales increasing for the second straight month.

The return of buyer confidence with much of the home price correction believed to be over, encouraging economic developments and historically low mortgage rates, will provide the stepping stone for further market stabilization.

Meanwhile, stagnant job growth and elevated levels of foreclosure continue to be cause for concern. The government is now taking proactive steps to restructure the mortgage industry with risk-management measures seen by experts as a “huge cut in red tape” that would ultimately benefit consumers.

The Housing Market:

Existing Home Sales

Existing home sales strengthened in April to 5.77 million, up 8.7% from March and 22.8%from last April. This is the tenth consecutive month of year-over-year increases.

According to Lawrence Yun, NAR chief economist, although part of the uptick was expected from the tax credit, there’s also been a return of buyer confidence, for those who remained on the sideline last year. The return of confidence is a result of stabilized prices, an improved economy, and continued advantageous interest rates.

In March, 49% of sales were from first-time buyers.

Median Home Price

The median price for an existing home was $173,100 in April, up 2.1% from a year ago and 4% from March. Distressed homes, accounting for a third of last month’s sales, continued skewing prices downward slightly as they typically are discounted 15% compared to typical home sales. Overall, prices this past year showed increased stability over the previous year.

Inventory

Total housing inventory rose slightly to 4.04 million in March, representing slightly less than an eight-and-a-half month supply of sales (if homes continue to sell at the current pace consistently and no new homes come on the market). Compared to the previous year, there are now 3% more homes on the market. Although this is the first rise in twenty consecutive months of decline when compared to the previous year, NAR’s chief economist believes this increase can be attributed to the summer selling season and that home prices are back on track.

Mortgage Rates

Mortgage rates dipped back below 5% this month due largely in part to the European debt crisis. As confidence in the value of the Euro eroded, more investors chose the U.S. dollar instead. With more demand for dollars, the cost of debt (interest rate) dropped. This event has also shown the global recovery is not free-and-clear of roadblocks to complete recovery. However, experts still anticipate rates will increase to between 6% and 6.5% by the end of the year. As the recovery gains increasing traction, the Federal Reserve will need to increase rates to prevent inflation.

Affordability

Affordability remains advantageous, supported by some of the lowest mortgage rates in decades as well as less expensive home prices. The home price-to-income ratio continues to remain well below the historical average of 25%. The ratio now stands at 14.9%.

Sources: National Association of Realtors, Freddie Mac

Government Action:

FHA Turns to Lenders to Monitor Brokers

As the Federal Housing Administration (FHA), the government agency that insures home loans, saw its market share rise to about one-third of the mortgage market last year, up from 2% in 2006, the number of brokers seeking to arrange FHA-backed loans has mushroomed to 9,043 at the end of 2009 from 5,759 just two years earlier.

The agency, finding itself inadequately equipped to monitor its brokers, is shifting the responsibility to its lenders.

The FHA expects the new policies to result in better risk management, and the cut in red tape should produce better rates for consumers.

As of May 20, the FHA no longer certifies mortgage brokers or tracks the performance of brokers’ loans. Instead, lenders are now required to sponsor brokers and assume responsibility for loans they originate, including losses from fraud or mistakes in underwriting. In addition to revamping broker insight, the agency also beefed up oversight of its lenders by increasing net-worth requirements to $1 million from $250,000. The change is in effect for one year for existing lenders.

Source: WSJ.com

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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Keller Williams Realty Atlanta – Peachtree Road

Beautiful New Construction Homes in Union Crossing!

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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4145 West Cooper Lake Drive

Stunning new construction home in desirable Cooper Lake Road area of Smyrna offered by The Brown Property Group. Only $399,000!!

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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Keller Williams Realty Atlanta – Peachtree Road

Atlanta Real Estate Deal of The Week:

Lender Approved Short Sale in Sarah Smith School District

411 Allison Drive
4 Bed / 3 Bath
 
Lender Approved Short Sale!
 
$440,000
and $10,000 in closing costs
Must have an offer by 4/7 and close by 5/31
 
Buyer Full Page
 
·         Located in the heart of North Buckhead  on a quiet dead-end street  within walking
distance to Sarah Smith School!
·         Amazing – Big – Updated – Charming home with fabulous 2/car garage
and master suite addition.
·         Master Suite features vaulted ceilings and 3 closets!
·         Wonderful features including  hardwood floors,
crown molding, plantation shutters and security system.
·         Great for entertaining – 2 family rooms plus a living room and separate dining room!
·         Lovely deck and fully fenced backyard with mature trees- perfect for children and pets!
 
FMLS # 3942223

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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Keller Williams Realty Atlanta – Peachtree Road

Deal of the Week

NEW PRICE  $265,000  $245,000 !!!

4133 Ashwoody Trail

Estate Owned – Vacant on LB

4 bedrooms & 2 baths

.59 Acres

Sought After Oak Forest Hills      

Near Murphy Candler Park

Bring Your Investors, Builders & Renovators

 SELLER SAYS “BRING AN OFFER”

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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Keller Williams Realty Atlanta Deal of The Week

Just Reduced $20,000 in Buckhead!

Keller Williams Realty Voted ‘”Highest Satisfaction For Home Buyers Among National Full Service Real Estate Firms, Two Years in a Row!” By J.D. Power & Associates

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]]> http://kellerwilliamsatlanta.com/2010/02/just-reduced-in-buckhead-keller-williams-realty-atlanta-deal-of-the-week/feed/ 0 http://kellerwilliamsatlanta.com/2009/10/keller-williams-realty-atlanta-legal-tip-waiting-periods-required-under-new-truth-in-lending-law/ http://kellerwilliamsatlanta.com/2009/10/keller-williams-realty-atlanta-legal-tip-waiting-periods-required-under-new-truth-in-lending-law/#comments Thu, 08 Oct 2009 16:13:16 +0000 Aaron http://kellerwilliamsatlanta.com/?p=63

 

Legal Tip presented by: 

Leigh Clack,  Neel & Robinson, Attorneys at Law LLC

22 Lenox Pointe, Atlanta, GA 30324

lenox@neelandrobinson.com   404-705-3690   fax 404-705-3697

 

 Keller Williams Realty Atlanta Real Estate Legal Tip: 

Waiting Periods required under New Truth in Lending Law

For any borrower applying for a loan after July 30, 2009, there are new laws and waiting periods that can affect the closing date.
 
1.     The lender must provide a Good Faith Estimate and other early disclosures within three (3) business days after the loan application is made.  This includes the Preliminary Truth in Lending Disclosure.
 
2.     The appraisal can not be ordered until the three (3) business day period above has passed (ordered on the 4th day).
 
3.     The closing can not occur until seven (7) days after the preliminary disclosures are made.
 
The Preliminary Truth in Lending contains an APR (annual percentage rate) based on the lender rate, lender fees, and settlement agent fees.
 
If any of these rates or fees change enough to raise the APR by more than .125% (1/8th of a percent), then the lender must provide new disclosures, and three more business days must elapse before the closing can occur.
 
If the borrowers need additional documents or services from the settlement agent, the charges for these items will increase the APR.
 
Please tell your lender at the time of application if the borrowers will need any of the following from the closing attorney:
1.     Power of attorney
2.     Mailing out of documents
3.     Preparation of additional deeds for title clearance or otherwise
4.     Subordinations of existing loans (refinance issue only)
5.     Any other document preparation or additional legal work

More Posts From Keller Williams Realty Atlanta:

 Termite Letters – Still a Good Idea

 Fulton County Property Tax Bills – How Does This Affect Buyers and Sellers in Fulton County?

Keller Williams Atlanta’s Mortgage Update: First-Time Homebuyer $8,000 Tax Credit Frequently Asked Questions

Keller Williams Realty Atlanta: Atlanta Metro Market Overview – October 2009

This Month in Real Estate Video Report For U.S. Market – September 2009

 

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