Featured Article Category
Is It Wise to Waive the Appraisal Contingency?
Is it wise to waive the appraisal contingency? Appraisals continues to cause aggita among many in the home buying process, is the answer to eliminate it? Current offers reflect the “now” while appraisals reflect the “then”; an inherent conflict especially in a transitional market. It was easy to see appraisal issues coming - in fact this was noted as a likely problem last fall. Waiving the appraisal contingency is done to present a more streamlined, competitive offer - one that will...Read More
Are Some Home Sellers Overplaying Their Hand?
“I don’t need to sell”…”I’ll just hold it and wait for the market to improve”…”These aren't comparable”. In a very few short months, home sellers have their swagger back. While many are exploiting favorable market conditions, many others are repeating the sins of the past – ignoring the data. Oddly, the really overconfident sellers tend to be those that have had expired listings; never mind that the home failed to sell at $X, with the rebounding market it’ll now sell...Read More
Investor Groups Hoarding Homes Under $150K in Atlanta
As the Atlanta spring real estate market begins to heat up, many buyers of homes under 150K are discovering an alarming trend; a significant lack of inventory. What inventory that is available is presenting additional surprises; very short marketing times, multiple offers and often list or above list price contracts. The culprit is the same as in many other parts of the country hard hit by foreclosures – major investment operations sitting down at the buffet that is the distressed...Read More
FHA Sowing the Seeds for Next Collapse
The Federal Housing Administration is planting the seeds for the next real estate collapse. As the recovery process continues, FHA is marketing homeownership to families who can’t afford to repay their loans, setting up these families for failure. In a study of 2.4 million loans insured by FHA in 2009 and 2010, 9,000 zip codes were identified in which 1 in 7 borrowers are projected to lose their homes – and savings – to foreclosure. How is this not recognized...Read More
Looking Ahead to the Spring Atlanta Housing Market…and Challenges Expected
Much anticipation surrounds the spring ’13 real estate market; will the “improvements” seen over the last year carry forward? Nationwide data suggests the bottom may have been reached but we think there are seven distinct hurdles to be cleared before saying the housing market has corrected. We expect that in many parts of metro Atlanta, the spring market will be a strong one in terms of buyer activity - how that translates to closings remains to be seen. We anticipate significant challenges; appraisals...Read More
Are Appraisers Holding Back the Recovery?
The appraisal conundrum continues to rage, we expect this is just a glimpse of what we’ll see come spring. Continued smothering appraisal underwriting, a shortage of closed sales available for use as comps and sellers expecting higher prices due to the “improving” Atlanta market will combine for a testy spring home selling season. But the apparent disconnect between appraisers and agents need not wait for spring. Appraisals have been blamed on derailing a lot of sales in recent years. In fact,...Read More
What Home Sellers Should Expect in Atlanta – 4th Qtr ’12
Inquiries concerning the future of the Atlanta real estate market continue to pour in. While no one knows what to expect, we have a few measured expectations for the last qtr of ‘12 – note the omission of the word predictions. Several micro markets in Atlanta are finding balance, sellers and potential sellers are beginning to file their claws. There seems to be a marked increase in seller confidence – often unsupported. We’ve talked with many that are trying to push pricing and...Read More
Investors Pushing Up Home Prices in Atlanta
The "investor" frenzy continues in Atlanta as the number of people looking to "invest" swells; so does their frustration...and the frustration of folks looking for a home to buy and live in. The continued bashing of the Atlanta real estate market and the consistently high level of foreclosures has brought national attention, and professional investors looking to feed. Like sharks on a bloated whale carcass they take big chunks and the rookie investors are left to fight over the scraps. And unlike the...Read More
Atlanta Real Estate Improves in 2nd Qtr ’12
So we present some rather positive news about the Atlanta real estate market. Just as we do with the negative reports, we warn you to keep this in perspective; one quarter or half does not constitute an end to the real estate tar pit. Like many other areas of the country, Atlanta home prices can stay down only for so long, everything is cyclical so here's hoping that this is a consistent upward swing. As always, Chartmasters has completed an awesome review of the...Read More
Some Atlanta Home Sellers Finding Plenty of Buyers
Are you a reasonable home seller? In some metro Atlanta real estate markets, supply and demand has reached equilibrium and in some cases, a seller’s market. As noted in a previous post, many Atlanta home buyers are finding that the news headlines bear no resemblance to the real world. Many micro markets, mainly north from Atlanta between I-75 and I-85 and up the 400 corridor are bucking the bloody national reputation Atlanta real estate presently carries; homes are selling at or near...Read More
Where Are the Great Home Buying Opportunities in Atlanta?
The buyer's market is over in many desirable metro Atlanta areas Where are the great home buying opportunities in Atlanta? Well, in most cases they’re where few folks want to be. Despite the continued blood bath media reports about the Atlanta housing market, many Atlanta home buyers are having a difficult time hitting the perfect trifecta; a quality home, in a stable area bought at a “value” price. In some areas, home buyers need to adjust expectations to fit current market conditions; the buyer’s...Read More
Atlanta #9 Market for 1st Time Buyers
The Atlanta-Sandy Springs-Marietta market was noted by Inman News as the ninth best for first time buyers. This is a bit of welcome national news for the Atlanta market as the area has been pummeled for years now due to the lagging recovery. Like a healthy food chain, everything starts at the beginning and markets don't grow without those critical first time buyers. 1st time buyers are the base of any recovery. The Atlanta metro area's median sales price peaked in third-quarter 2006...Read More
Is it Time to Buy a Home in Atlanta?
I think it’s time to consider buying a home in the Atlanta area. I don’t say that as a shill for any real estate organization; I say that as an appraiser, broker and student of this industry for over twenty years. The data, coupled with rates that have been ridiculously low for so long combined with the prevailing expectation by most economic “experts” that rates will/have to rise after the election make now the time to legitimately consider a home purchase....Read More
Home prices stabilizing. So what’s wrong with Atlanta?
"Some of America's most closely watched housing numbers are starting to suggest that the big decline in housing is coming to an end, at least in some metros. Home prices in Seattle, Minneapolis, and Denver have begun to trend upward in the past few months, according to the S&P/Case-Shiller housing indices. Even hard-hit metro areas such as Tampa, Fla., and Phoenix have seen a modest rebound. But in Atlanta home prices not only continue to fall, the declines are accelerating....Read More
It is Really All About the Banks, Not Homeowners
It is quickly becoming clear that like everything else that has occurred during this "economic slowdown" big business is more likely to land on it's feet than "Joe Citizen". The recent foreclosure settlement stinks a lot like the big bailout, it's a literal slap on the wrist to the very organizations at the center of the continuing housing crisis. From a recent NYTimes article: Last week was a big one for the banks. On Monday, the foreclosure settlement between the big banks...Read More
Atlanta Real Estate Data – 4th Qtr ’11 Review
Over the last year, two sub markets in the City of Atlanta saw median home values increase over 10% and NE Cherokee County sales increased by 121.7%. Last quarter, Sandy Springs (inside 285) sat with the highest home inventory at 13.8 months (twice as much as many areas) and saw only 35.5% of listings sell, Eastern Gwinnett County led the region with 63.1% of all sales noted as distressed. Many surprises in the data, some with clear explanations, others result in...Read More
Loans Still Due Despite Foreclosure – Deficiency Judgments
Sweating out a distressed sale or foreclosure may not absolve an owner from the long arm of those due money. Banks can employ what is called a deficiency judgment (the difference between the outstanding mortgage balance and the sale price) to collect the debt, requiring a defaulting borrower to pay the balance of a loan and any fees, minus what the bank recovers when it sells the home. In a worst-case scenario for borrowers, banks could garnishee wages to pay...Read More
Atlanta Home Values are…a Mess
Atlanta can finally raise a championship banner, and it's one no one wants. But toss the challenge flag because the devil is in the data reviewed. In November, prices of single-family homes were down close to 12 percent compared with a year earlier, the largest decline among major metropolitan areas, according to data released on Tuesday in the Standard & Poor’s/Case-Shiller Home Price Index. Home prices regionally are now below their levels of 2000, making Atlanta one of only four...Read More
Home Values in High School Districts
Real estate in Atlanta is heavily influenced by schools; in many cases the academic track record of a high school dictates appeal and marketability of an area. Using RealValuator, we can now provide clients the real estate market trends for any metro Atlanta high school district. This snapshot will show the general trends by quarter and can be configured to show different price points. Here's an example of the chart showing home prices in Milton high school. This program can also...Read More
What Kind of Area is That? Find Out
Our job is protect our clients with solid data, but someone buying a home is living there and needs to understand the demographics of areas that interest them. There are legal limits to what agents can say regarding demographics for good reason, every client is different and only that client knows what works for them. The most common question a Realtor is asked that they can’t legally answer for fear of violating Fair Housing laws is “What kind of people live...Read More
Homeownership Survey – Please Help
Please answer these 6 short questions about homeownership. Your comments are always welcome... Read More
Spilling Tears Over Bad Appraisals – Stop Already
Can the real estate industry please stop spilling tears over bad appraisals - stop already! Katie Cosner of AGBeat posted a well done article about "bad appraisals", hitting the very same things I've been hammering for years. The disconnect between agents and appraisers (and now builders as well) inexplicably remains. To be sure, variables exist with any appraisal and they are subjective to a point - but one thing really is central to every appraisal - COMPARABLE DATA. If agents,...Read More
Influence of Distressed Sales in Atlanta – 3rd Qtr ’11
Overall, Metro Atlanta home prices continue to slip. There are areas of stability, mainly certain zip codes, micro markets and school districts (parts of Roswell, Alpharetta, East Cobb are stabilizing...) but most metro markets remain in the funk. The influence of distressed sales is clear; short sales and foreclosures combined to account for 39.4% of all 3rd Qtr '11 sales in the greater Atlanta market. Several telling charts are below... Chartmasters completed their 3rd Quarter '11 review based upon FMLS data....Read More
How a Financial Pro Lost His House
This is without a doubt, the best first hand account of a homeowner losing his home that I've read. This isn't just any homeowner, this is a professional in the finance field; an expert who makes a living advising folks how to preserve and make money in the market. This is someone who acknowledges the obvious; "I should have known better". But the question begs to be answered...would you trust your money to someone like this? One night a few years...Read More
BoA Loves (to Foreclose on) Their Valued Customers
It's amazing how banks just run roughshod over everything in this nation, so much for this president getting them under control.They can adversely impact the lives of folks without penalty - and I'm not talking about folks legitimately on the hook; I'm talking about folks that really don't have reason to be hassled. From AG Beat - Bank of America is not new to wrongfully foreclosing on homes, but as seen in the video above, a Texas homeowner whose house was...Read More
It’s Time to Buy That House
Those of you that have worked with me or read my posts over the years know I'm not a mouthpiece for the real estate community; I don't march in lockstep with what the various real estate industries put out. I don't think everyone should own a home; I don't (and never did) think a home should be regarded as a significant investment vehicle - a piece rather than the main vehicle; I don't think you should ever be house poor...Read More
Stability? Increasing Values? A Lucky Few Areas…
As many readers of this or other blogs I write for know, I can spend a bit too much time on the negative aspects of this market. That's probably due to starting my career in the appraisal business - and being consistently at odds with the sales industry and the nonsensical "puffery" that they constantly spew. Agents have a habit of either disregarding or spinning any data that's contrary to the talking points...this agent doesn't. After the blood bath of the...Read More
Help the Housing Market – Increase Foreclosures!
It's refreshing to see an article in CNN Money reiterating what many of us in the real estate industry have known for years; that the foreclosure abatement process is simply delaying the inevitable. Many of the homes in the foreclosure process will never be recovered, it's much better to foreclose and get on with the next step which is genuinely trying to sell the inventory, stop the value damage being done to areas by these homes and stabilize the...Read More
Uncle Sam the Landlord – Another Stupid Idea
Given the bloody mess that is real estate market, the feds are now considering the idea of renting some of the housing inventory. This is a spectacular idea, for all the wrong reasons. The slide into what has always smelled like a double dip recession was fueled in large part due to over-leveraged homeowners. Many underwater owners have tried to work with lenders, other have strategically defaulted and yet others are attempting short sales. To some extent, owners had some skin...Read More
Atlanta Real Estate 2nd Quarter 2011 Area Comparisons
Chartmasters has completed their typical outstanding review of the 2nd Quarter 2011 Atlanta real estate market data. Metro map overlays are posted, there were some interesting results from the data analysis. Highlights from the report include: Compared to this time last year, 1.5% more homes have sold - but this was due to increases in the under 200K market. Most foreclosure activity was in Paulding County, the least in Sandy Springs inside 285 Most short sale activity was in SE Dekalb County, the...Read More
BOA Bulldozing Foreclosures Makes Sense
Bank of America leveling some of their nastiest foreclosure inventory is a great idea. Of course there's financial interest in the form of a write off for them, but it's also a big plus for the local neighborhoods. At this time Atlanta isn't on the list, but the types of homes being removed are found throughout many neighborhoods in the city. Appraising since '89 and now focusing on foreclosures specifically, I appraise a good 50-60 homes a month. The number...Read More
A Low Appraisal, Now What?
As if there weren't enough land mines to dodge and punji pits to avoid in the current Atlanta real estate market, we continue to see a steady increase in the number of appraisal issues. Low appraisals are most common with refinance loans but over the last year appraisal challenges continue to increase on the sales side. The struggling Atlanta real estate market is similar to the national one; 10 percent of the nation’s Realtors said they had sales canceled because appraisals...Read More
Your Fate is Tied to Your Real Estate Agent
What’s the most important thing to consider when selecting a real estate agent? Is a large franchise better than a local independent company? Here in Metro Atlanta there are several of each variety; a few of the independents have hundreds of agents while others are “boutique” or “single/small team” offices. Given the myriad of choices, what are the most important things to consider when selecting a real estate firm and agent to represent you? You are hiring a real estate agent,...Read More
You Are Not Smarter Than the Market
There are an infinite number of ways to say “don’t be stupid”. You can tell a kid “that stove is hot” but unfortunately, many times the lesson isn’t learned until that kid gets a third degree burn on his hand. Here’s the real estate equivalent warning – “You are not smarter than the market”. In the last two weeks, two sellers tried to out flank the local Atlanta real estate market; they are now both licking their wounds and realizing that...Read More
Do You Know Who Owns Your Mortgage?
If by chance you missed the recent 60 Minutes piece asked "Who Owns Your Mortgage", you need to catch it by hitting the link below. This is nothing short of vile; clear and undeniable fraud has taken place again and again with these legal documents and yet not a single criminal charge has been brought. Thousands of fraudulent documents, forged signatures and improper notarizations are the tip of the iceberg....yet there remains a deafening silence from Washington. We need The...Read More
