Monday, March 28, 2011

Thursday, March 24, 2011

Rent vs Selling your Home...

Suddenly out of the blue you have found out that a new position has opened up within your company and they are asking you to relocate your family to the other side of the country.

The job opportunity is too good to pass up so you decide to take the position. You realize with an impending move you are going to need to either sell or rent your home.

Considerations for renting or selling a home

Anyone who is considering selling a home in 2011 and has bought in the last six or seven years faces the real possibility that they will be losing money on the sale. The thought of losing money is never pleasant but unfortunately is part of today’s Real Estate reality. In my experience the immediate thought process of most home owners is to rent the home and not sell for a loss. This is kind of similar to the stock investor who hangs on for dear life with their losing picks but sells their winners instead.

In many cases they will ride the loser for an extended period of time until they realize it will take a very long time for that stock to come back to where it once was when purchased. Anyone who has ever invested in stocks including myself has been guilty of this. It is hard to give up on a loser because there is always the thought that it will come roaring back. So is renting the home really the best move or should you unload this asset that is working against you?

Where is the local Real Estate market headed?

One of the considerations of whether to sell or rent your home is to find out from a local Real Estate expert where they feel market values are headed both in the near term, as well as longer down the road. A knowledgeable Realtor that has been in the business for a while should be able to help you determine the trend of where the market is headed at least in the short term. Crystal balls are a hard thing to come by in Real Estate. Those that are lucky enough to have one are often times millionaires. Unfortunately knowing exactly when the Real Estate market will turn around requires one.

Most economists believe that once Real Estate markets do hit bottom the climb back up will be a slow and steady one. The opinions of most are that yearly appreciation will return to more normal historic levels of 3%-4%. Of course this is an average and states, cities and neighborhoods that are desirable could rise at a slightly higher clip.

As a home owner what you should be trying to figure out is how long will it take you to get back to a break even point or even something you can financially stomach. You should also be asking yourself is the time it takes to get back to break even worth it to you?

For example, lets say you bought your home for $500,000 and it has dropped in value by 25% and is now worth $375,000. Lets further assume that the Real Estate market beats the economists predictions and rises by 5% yearly. Do you realize it would take seven years to get back to break even?

If you have equity in the home you need to figure out if you would be better off taking the loss and putting your equity somewhere that could potentially earn you more money. If you don’t have any equity you would need to figure out if you have the necessary funds to bring to the closing table or would need to explore other alternatives like a short sale.

What is the local home rental market like?

Should I sell or rent my current home

Again you should consult with a local Realtor to determine how well the rental market is performing. Has the rental market done as poorly as the Real Estate market or is there demand for rental housing? Some areas rental markets have done very well.

There is a good possibility there are folks who would like to rent a nice home rather than commit to purchasing if they feel they could be transferred in a short time period or feel market values are still sliding and don’t want the risk.

The rental home becomes an investment property

Relocating home owners need to remember that a rental home becomes an investment property. Owning a home as an investment property has the potential to help or hurt you tax wise. This is definitely something you would want to consult a tax professional for guidance.

Although you will be taking in rent you need to remember that you will still have principal, interest, taxes and insurance to pay. If the property is a condo you would more than likely also be paying the condominium fees as well. As a landlord you will also be required to maintain the property and fix any necessary issues that come up.

Many landlords that have relocated out of state will also consider hiring a property manager. The typical charge for management services runs around 8-12% of the rent. So if you are charging $2000 a month for rent you can expect to pay a manager in the neighborhood of around $200 a month. There are some excellent tax deductions for rental property that could play a factor in your decision making.

Taking on landlord responsibilities

As a landlord one of the 1st steps is going to be choosing the right tenant. Over the years I have seen a few occasions where the renter did not treat the home the same way an owner would. The owner was left with paying to replace carpets and do quite a bit of painting. These kind of costs can add up fast. Picking a responsible tenant becomes critical.

There are also considerations such as handling tenant complaints, maintenance issues or even legal issues such as eviction. In the end there is a lot to think about when deciding whether selling or renting your home makes the best fiscal and practical sense.


Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metro-Atlanta: Fulton County, Cobb County,Gwinnett County,Paulding County,Douglas County, Dekalb County and Henry County.

Via-Bill Gasset

Tuesday, March 15, 2011

Hot Of The Press!!!! The Atlanta Development Authority has been awarded an additional $25 Million in Down payment Assistance to help First Time Homebuyer as well as move up buyers to assist them in purchasing a home in the City of Atlanta. Did you know that the law still defines a first-time homebuyer as someone who has not owned a primary residence for three years prior to the date of purchasing their new home. Exisiting New Construction single family homes,townhomes, condominiums, and manufactured housing with a maximum purchase price of $252,890. All Properties must be in the City of Atlanta Email us for additional Information.

Monday, March 14, 2011

Prime Time to Buy

Prime Time to Buy
7 Reasons Why Now Is a Great Time to Buy a Home

Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.

1. Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.
2. Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.
3. Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.
4. Sellers are motivated. This means that buyers have the upper hand. Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.
5. Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.
6. Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.
7. Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.

Program Structure

The Beltline Affordable Housing Trust Fund provides homebuyers with downpayment assistance of up to 20 percent of the sales price at a zero-percent interest rate as a soft second mortgage.

Who Qualifies?

There is no first time homebuyer requirement for borrowers moving into the incorporated city limits of Atlanta but, current residence must be sold prior to closing on the new home.

Qualifying Properties

Sky Lofts -One, two and three bedroom units from $119,000

Triumph Lofts-Lofts located in the Reynoldstown Community from the mid $200,000

Milltown Lofts-One ,two bedroom units from the $170,000's

Glenwood Park- Condominiums in the Glenwood Park Community from $132,500

Grinnell Lofts- Boutique Condominiums in Inman park

White Provision-Condo living in trendy West Midtown from the $220's

870 Inman-Condos in Inman park Village near the BeltLine from $179,000.

Friday, March 11, 2011

It's Time to Spring Forward

It’s time to spring forward!

On March 13, remember to move your clocks forward!

Speaking of moves...
Are you ready to make a move?
Do you want to find out if now is a good time to make it?
Not sure what your property is worth in today's market?

If you answered Yes, then simply call us or reply to this email. We will provide you with access to all the current sales in your neighborhood.

Information is Power
Get Some!

This information can help you in making important decisions regarding insurance coverage, home improvements, and buying or selling.

If you are considering buying or selling we would love the opportunity to earn your business. Let's talk about getting you into your dream home!

Tuesday, March 8, 2011

Market Conditions

We at the Success of Real Estate Team have improved the way do things in 2011! This newsletter is full of the latest Real Estate Market Conditions.

Gradual progress in the housing market continues at a steady pace without government support. The market has shown remarkable improvement from the initial drop after the expiration of the home buyer tax credit this past July. Although higher-than-normal distressed sales skew the overall picture of home prices downward, inventory continues to shrink and sales continue to rise. The rock-bottom interest rates of 2010 are likely to trend upward. As economists anticipate rates at or above 6% by the end of 2012, buyers are moving off the sidelines and into the market.

A good sign for long-term market stability is that the median down payment on conventional mortgages has risen to 22%, up from 4% in 2006 and slightly above the 20% standard in the 1990s. This may keep buyers looking in slightly lower price ranges, but it is a good sign of future sustainability for homeowners and banks alike. There are still ample opportunities for those who would like down payments below 20%, including some conventional mortgages and those backed by the Federal Housing Administration, Veterans Affairs, and the Department of Agriculture’s Rural Development loans.

As the economy improves, stimulus efforts by the government and the Federal Reserve Board will gradually wind down, which typically means rising interest rates. Meanwhile, buyers continue to benefit from historically favorable buying conditions and sellers are encouraged by increased market stability.

Home Sales

in millions

The increasing trend in existing home sales activity continued through January, and for the first time rose above year-ago levels when the home buyer tax credit was in effect. This marks the sixth monthly increase since July when the tax credit expired, and indicates a recovery that’s gaining a firmer footing without government support.

Topics For Home Owners, Buyers & Sellers

Preparing your home for sale in a buyer’s market can seem daunting, but these five tips will help you get the best price in the least amount of time.

* Organizing and cleaning is crucial when prepping a home for sale. Potential home buyers have a more positive reaction to homes that are clutter-free and give them the feeling that the home is “move-in ready.”
* Presale home inspection can inform you of any trouble areas within your home that can stand out to potential buyers. An inspection can also help you make any repairs necessary before future open houses.
* Determine replacement estimates before listing your home, even if you are not planning on making the replacements yourself. This information can help buyers to make informed decisions.
* Have your warranties ready – especially for all those home appliances that will stay within the home after the sale.
* Curb appeal is a crucial factor because it determines first impressions. A negative first impression can cloud their entire opinion about the home.

Brought to you by KW Research.

The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Thank You


Call today if you or anyone you know is interested in luxury lease opportunities between $1,800 - $8,000 in the "nation's best sub-cities” of Buckhead or Midtown in Atlanta Georgia. We can help. We address the desires of the affluent rental market.

Also, if you are a residential rental property owner with a home or condo in either of these communities and you are seeking a qualified lessee for your rental please contact us today.
Sitting atop the exclusive AAA Four Diamond Loews Hotel, 10 Sixty Five Midtown offers fantastic amenities to all residents.
2 & 3 bedroom homes are available. Located in the heart of distinctive cultural surroundings such as the FOX Theater, High Museum and Piedmont Park. Outstanding restaurants and notable shopping. For relaxing, a Spa, club room with outdoor fireplace, gas grill and pool w/dining area. 24 Hr concierge, valet parking, maid/laundry and personal chef are all at your fingertips.

email or call 678-886-0874 to schedule your private preview


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