Tina & Mike's Blog

Whether it's environmental concerns, an interest in national energy independence, or just personal economic motivations, more and more home buyers are asking about "going green."  But in real estate, what does "going green" really mean?  There is talk of "green homes," but how do you know which homes are actually green?

There are a number of local and national green building certification programs to help the home buyer make that determination, including EarthCraft House, Energy Star Homes, LEED for Homes and NAHB National Green Building Program.  For more information, our Atlanta Green real estate page gives an overview of each of these green building programs.

But how does one put all this information to work in their home search?  Well, on most home search web sites, you're out of luck.  But here at Intown Elite, our property search engine is actually empowered to help you to find green homes.  Our Atlanta Green Homes page displays all the listings in the Buckhead and Intown Atlanta areas that are certified in at least one of the above mentioned green building programs.

Our web site also shows the WalkScore(TM) of every property, displayed on the upper right of each listing.  WalkScore(TM) helps home buyers find a walkable, car-lite place to live. It works by measuring the distance from a particular residence to nearby amenities, such as grocery stores, restaurants, parks, libraries, shops, etc. Living in a walkable location promotes better health, a reduction in greenhouse gas, more transportation options, increased social capital and stronger local businesses.  So, if you're in the market for a Green Home in Atlanta , check out our Green Homes Atlanta page, and feel free to contact us if you have any questions, or if you would like to schedule a showing.

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

We always swell with pride when our new clients tell us that they "love" our web site.  We pride ourselves in having the most user-friendly website for Intown Atlanta real estate.  To maintain that mantle, we're not resting on our laurels.  Don't worry, we're not changing our popular Intown Atlanta Neighborhood Guide and Buckhead Neighborhood Guide, both of which are client  favorites.  We have, however, completely upgraded our property search and display functionality.

Finding the perfect Intown Atlanta home has never been so easy, and with such an intuitive interface.  While other real estate web sites overwhelm visitors with a sea of textboxes, checkboxes and city selection dropdowns, we instead choose to keep things simple yet powerful.  

Now, if you're one of those "technology doesn't work for me" types, don't worry.  Feel free to call or email us and we can set up a custom search for you.  You'll be the first to see new properties as they come on the market and be notified of price changes as soon as they happen via email alerts.

So whether you want to search all on your own, have it all done for you, or anywhere in between, we can help you.

Happy house-hunting!

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

Good News Week for Atlanta Real Estate

This week brought a couple pieces of good news about the Atlanta real estate market. First, a report released by Metrostudy shows that Atlanta's housing market has hit bottom, with primary indicators having reversed and now trending to the positive.  Although the trend is positive for sellers, we at Intown Elite believe that buyers continue to maintain the power in negotiations, since there’s still nearly 13 months of inventory on the market.
The other good news for the real estate market is the extension of the $8,000 tax credit for first-time home buyers until May 1, 2010. In addition, a credit up to $6,500 is available for other home buyers who have owned their current homes for at least 5 years. This opens tax incentives to "move-up" buyers who are purchasing a primary residence.  

As always, there are limits to these credits, so please contact your real estate professional for the details.   These tax credits are not likely to be further extended, so if you are considering buying a home, now is the time.

Please feel free to contact us here at Intown Elite with any questions you have about the new tax credits. Thank you and happy house-hunting!

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

"I'm looking for a really good deal."  That's what just about every buyer says when they first speak with us about buying a home.    Not that they're looking for a particular style of home with a specific number of bedrooms or baths, a specified location or even whether it's a condo, townhome or single-family home. We’re finding that buyers are focusing more on the type of deal they can get rather than what attributes they really want in a home.
   

Of course, everyone wants a good deal, but it's important not to get so tunnel-visioned that you miss out on the perfect home for you, because you're holding out for the deal of the century.   Do you want a good deal on a home you love, or a great deal on a home that's just OK? You have to live there. If you don't love it, is it really that great of a deal?

Waiting for the bottom?

Many folks are sitting on the sidelines,  waiting for the bottom of the market before they’ll  jump in.  If that sounds like you, how will you know when  the market has bottomed out?  Market timing is a tricky game to play.  Check out the graphic below:

Let's say the graphic represents the housing market.  Although the market is cyclical, with ebbs and flows,, most people tend to think in a straight line. Point A was near the peak of the market. Although the market was overinflated, many people thought that prices would continue to climb. This was a contributing factor to the "bubble" that occured in some markets. 

Then, the market began to take a turn in the opposite direction.. Let’s say that now we're at the other end of the spectrum (point B). The market has turned downward and people wonder if we’re near the bottom. The big question on everyone’s minds: When will we know that we’ve hit the bottom and it’s time to get off the fence and start buying?

The answer: Just like the economy as a whole, we won't know for sure that the market has turned until data from previous months are analyzed. In other words, we won't know we're at the bottom until the bottom is already behind us.

So, at what point would you rather buy a home?  Point C represents the beginning of the upswing.  Both B and C are at the same level on the vertical price scale. The difference is that at point B, people (i.e. sellers) think that prices will continue to decline, whereas at point C sellers think that prices are on the rebound.  At which point do you think you'll have the greater negotiating leverage?

(The correct answer here is B.)

What about interest rates?

Well, they're at historic lows, too.  Buyers can get 30-year fixed-rate mortgages with rates of less than 5%. The federal government a couple of weeks ago made another move, effectively pumping $750 billion into the mortgage market, which should drive rates even lower into the 4's over the coming weeks. So, if you want to take advantage of this "perfect storm" of low rates and low home prices, the time to get in gear is now. Years from now, people may be saying, "Darn, I wish I had bought back in the spring of 2009!"

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

Buying a home is one of the largest, most significant investments you will make in your lifetime. The decisions you make during the buying process are critical and will affect you long after the sale.

There’s a lot at stake, but by relying on the experience of a real estate agent, you can eliminate much of the uncertainty and stress when buying a home. So, why do some buyers try to go it alone and buy without using an agent?

Unfortunately, some buyers mistakenly believe that they’ll be better off without a real estate agent when buying a home. Following are three common misconceptions that some buyers have about using an agent, and why giving into those misconceptions could potentially put their real estate investments at risk.

Misconception #1
“It will be easier and more convenient to have the agent who has the FOR SALE sign in the yard help me, rather than getting my own agent.”

The person who has the property listed (and who has placed the FOR SALE sign in the yard) is called a Listing Agent. The Listing Agent works for the seller and, by law, must act in the seller's best interest. Not yours. It’s the Listing Agent’s job to sell the home for as much money as possible and with terms that benefit the seller. Therefore, as a buyer, it typically isn’t advantageous to rely on the advice or counsel of the Listing Agent.

Be leery of a Listing Agent who volunteers to represent both you and the seller. This is called Dual Agency - a complicated scenario requiring the Listing Agent’s loyalties to lie with both you and the seller simultaneously. Dual Agency is illegal in some states.

An agent who represents buyers is called a Buyer’s Agent. It is the job of the Buyer’s Agent to help the buyer obtain his or her ideal home for the lowest price and best terms possible. A Buyer’s Agent works exclusively for you - the buyer - and has a legal fiduciary obligation to represent your best interests. A Buyer’s Agent can streamline and and simplify the process - walking you through each step and helping you avoid costly mistakes.

Misconception #2
“I’ll get a better deal if I don’t use an agent.”

Some buyers feel they will save money by not using an agent -- believing that the seller will reduce his price in lieu of paying an agent commission. Here's the problem with that theory:

When a homeowner hires a Listing Agent to sell his home, the owner is required to sign a contract called a Listing Agreement. The Listing Agreement states that if the home sells, the homeowner is contractually obligated to pay the Listing Agent a commission - say, 6%.

What most people don't recognize is that (per the Listing Agreement), the Listing Agent is in no way required or obligated to share that 6% commission with ANYONE except for a licensed real estate agent who is representing the buyer (a Buyer’s Agent). The seller won't simply reduce his price in lieu of paying a commission, because the commission is not his to give. The commission belongs to the Listing Agent. So if you purchase a home without a real estate agent representing you, most likely the seller is still paying the the ENTIRE commission ... all to the Listing Agent.

Some Listing Agents will tell you they'll give you a "good deal" if you buy directly from them without representation. This is a common tactic used by some Listing Agents. Remember, they stand to DOUBLE their commission if you don't have an agent representing you. So, always consider the source, what their motivations are and with whom their loyalties lie.

Misconception #3
“I’ve bought property before/I’ve researched home buying on the Internet, so I’m proficient in the process. Therefore, an agent can’t really add any value.”

Finding a home is the easiest part of a real estate transaction. Anyone with access to the Internet or a newspaper can find properties for sale. It’s what happens after you’ve found your dream home that things tend to get complicated -- and where a real estate agent can add a tangible value.

Let’s say you’ve found your ideal house or condo and you want to buy it. What happens next?

Do you know how to make an offer? Do you understand the ENTIRE contract? How does earnest money work, how much should you contribute and who holds it? How can you be certain you aren’t paying too much for the house? What are your rights during the due diligence period? Are the numbers on your Settlement Statement correct?

These are just a few of the important issues you’ll encounter when buying a home so it’s important that you receive the proper guidance. If you don’t have an agent, the Listing Agent may be willing to provide some help, but remember - the Listing Agent represents the seller and is legally obligated to look out for the seller’s best interests.

If you’ve purchased real estate before you’ll have a general understanding of the process, but keep in mind that most states adjust their sales contracts yearly, so critical aspects of the contracts and processes can change year-to-year. It’s also important to keep in mind that the information you find on the Internet may be outdated, inaccurate and may not even pertain to the laws and rules in your state.

An experienced Buyer’s Agent adds experience and expertise in all aspects of the sales process including financing, negotiations and more. Competent Buyer’s Agents:

• Are involved in dozens of real estate transactions per year.
• Know what can go wrong because they’ve seen it, time and time again.
• Have the knowledge to help you ask the right questions
• Can help you avoid oversights and misinterpretations.
• Have access to the most updated sources of information, including recent sales data.
• Bring a network of known, trusted real estate professionals, including: lenders. attorneys. Inspectors and contractors.

The best part about using a Buyers Agent is that they are compensated from a portion of the seller-paid commission when you purchase a home, so there is no direct cost to you.

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

On Wednesday, President Barack Obama signed the $787 billion Economic Stimulus Plan into law.  We're not going to get into the politics, but simply discuss its impact on our little corner of the world -- residential real estate.

Last year we told you about the Housing and Economic Recovery Act of 2008, which was  a tax credit for first-time home buyers.  The 2009 stimulus plan also includes a tax credit for first-time home buyers, but  is much improved over last year's.  This new plan provides a tax credit  up to $8,000, while the  2008 tax credit was capped at $7,500. That's not the key difference though.  The truth is that the old tax credit was actually an interest-free loan that buyers  had to pay back to the government over time.  The new tax credit does not have to be paid back ever, as long as the buyer doesn’t sell the home within the first three years.

It's important to note that this is not a tax "deduction." It is  a tax "credit."  That means it doesn't just offset your taxable income, it actually reduces your tax burden dollar-per-dollar up to $8,000.  That's right, first-time home buyers can receive  $8,000 of "free money" to buy a home in 2009.

Of course, with all government programs, there are some restrictions.  If you would like more information on how these restrictions might affect you, feel free to contact us.

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

It’s been a while since we made a blog post, partly due to the holidays, but partly because we have been busy with several new buyers.  Why, in an uncertain economy, are so many buyers jumping into the real estate market?  Do they know something you don’t know?  It’s really quite simple - the current market condition represents an unprecedented opportunity for home / condo buyers.  So what makes now such a great time to buy?

It’s a buyer’s market. 

That’s because there are currently many more people trying to sell real estate than there are people willing and able to buy.  That means prices are lower and sellers are more negotiable now than in the past.

Scarcity = Leverage.

Qualified buyers have the power.  Not only are there fewer buyers than there are sellers overall, but banks are being more strict on their lending standards.  Gone are the no-doc “liar’s loans”, sub-prime, Alt-A and other crazy loan products that created the financial mess we’re in.  These tougher standards make qualified buyers even more scarce.  If you are a qualified buyer in this market, you are the rare gem.  This gives you the upper hand in negotiations.

Mortgage rates near 50-year lows.

Not only can you get a reduced purchase price on a home, but your cost to borrow money is also at historical lows.  Many lenders have reported rates under 5% for a 30-year fixed-rate mortgage!  This also increases your buying power, enables you to buy more home for a given payment, or get a lower payment on a given home. 

People are funny.

Human behavior is sometimes irrational and we often repeat our own mistakes time and time again.  After stocks have fallen, people feel they need to “get out of the market” and end up selling at the stock’s lowest point.  Then they wait for the market to “recover” and jump back in after missing substantial gains.  Sell low and buy high?  That’s not how you create wealth.  The same concept is true for homes.

Real Estate is “On Sale”!

If someone told you that prices of flat screen TV’s have dropped this season, you might be more likely to buy one.  Yet the same, normally logical person may hesitate buying a home because they hear in the press that the real estate market is depressed.  The press reports might sound like doom and gloom, but what they’re really telling you is that houses and condos are on sale!  That flat screen TV will do nothing but depreciate in value.  On the other hand, that home that you buy at a bargain price today will surely appreciate in the long run.  So what are you waiting for?  Real estate is on sale!

Tina & Mike McGee
Owners
Intown Elite
real estate services
404.478.7800

With all the doom and gloom on the news, are there any bright spots out there?  Yes, of course there are!  One is the falling price of oil, gas and other commodities, which helps to soften any downturn in the economy.  But what may surprise you is that the resale home market is another bright spot.  

We've written in previous blog posts that the Intown Atlanta market has been doing quite well, in contrast to many other parts of the country.  But now comes news that the country as a whole is rebounding in terms of existing home sales.  In September, existing home sales jumped 5.5% as affordability has improved.  Improving affordability in some markets has to do with home prices correcting to more reasonable levels after steep run-ups in bubble markets.  But another factor that improves affordability in all markets is interest rates.

Recent actions by the federal government, including the takeover of Fannie Mae and Freddie Mac, as well as the economic "rescue" plan, has lead to lower interest rates for home loans.  Very often buyers can now get fixed-rate mortgages under 6 percent.  Check with a qualified Atlanta mortgage lender to see what kind of rate you can get.

The jump in sales last month was the largest since 2003, and outperformed economists expectations.  Many economists have said that the economy will not recover until the housing market stabilizes, to this is welcome news.  This news coupled with declining inventory may imply that the housing market has reached a bottom.  This emphasizes what a great time it is to buy now.  Read the full story at this link.

Tina & Mike McGee

Owners

Intown Elite

real estate services

404.478.7800

In a previous blog post, we mentioned how the Intown Atlanta real estate market was different than the "bubble" markets, which have lost so much in home values lately.  By contrast, single family homes in Intown Atlanta are holding their own.  In fact, many established Intown Atlanta neighborhoods can boast rising home values in recent months.  But don't take our word for it, check out this recent article in the Atlanta Business Chronicle: House prices rising in Atlanta

Tina & Mike McGee

Owners

Intown Elite

real estate services

404.478.7800

Low interest rates, tons of listings on the market, motivated sellers, reduced prices...what a great time to buy!  Still on the fence?  Need yet another reason to buy?  The government just provided one.  It's called the Housing and Economic Recovery Act of 2008, and it was enacted just over a month ago.

What is it?

Well, the bill includes a number of provisions, including property tax deduction for those who don't itemize their income taxes, a low-income housing credit and other reforms.  But the item of most interest to many is the tax credit for home buyers.

Who is eligible?

The tax credit is available to first time home buyers who purchase a primary residence before July 1, 2009.  

How much?

The tax credit is 10% of the purchase price, with the maximum credit being $7,500.

Tax credit...is that like a tax deduction?

No, it's better than that.  A tax credit is a dollar-for-dollar reduction in your tax bill, which makes it more valuable than a tax deduction.  Also, this tax credit is refundable.  In other words, if you're eligible for the tax credit and you paid less than $7,500 in federal income taxes, you'll still get the rest back in a tax refund.

Any catches?

Of course...this is the government we're talking about here!  The first catch is that you have to pay back the credit over 15 years.  Still, that's a pretty good deal.  You get up to $7,500 now, and you just have to pay an additional $500 a year in taxes for 15 years, starting in 2010.  Basically, it's an interest-free loan.

Any restrictions?

You betcha.  The tax credit phases out for single taxpayers with adjusted gross income of $75,000 to $95,000. For married couples who file jointly, the phaseout is $150,000 to $170,000.

There are more details, but that's it in a nutshell.  If you'd like more information, feel free to contact us and we'll send you a 6-page PDF document with the whole scoop.  There may be other programs available as well, so we recommend you contact a mortgage professional to discuss your specific situation.

Mike McGee

Broker / Owner

Intown Elite

real estate services

404.478.7800