South Atlanta Househounds

From College Park down through Stockbridge, McDonough to Griffin and Peachtree City in the west and Covington in the east, the majority of loans are being written in the price range of $85,000 to $150,000.  This value range is what we affectionately call the sweet spot and it accounts for over 70% of the home sales throughout South Atlanta. 

Let me begin by saying that there are a ton of deals in the sweet spot.  There is still an oversupply of distressed properties such as REO’s or short sales in the sweet spot, but as this value range represents such a large percentage of the sales, the principle of supply and demand comes into play.  You have to move quickly and we are beginning to see many more full priced offers… an early sign that the market is improving. 

But what about those properties that are on either end of the spectrum?  If you have the ability to pick up lower end properties as an investment or can afford higher end properties then now is a great time for you to buy.  In looking at property values for the past year we see that overall throughout all of South Atlanta we averaged being down by approximately 10%.  But if you look at the percentage discounts taken on the properties that are either above the sweet spot or below it, you find discounts in the 40, 50 even 60% range.  As the market continues to evolve we are going to see more and more purchasing pressure put on these properties and the values will stabilize, but if you’re looking to buy in the price range either above $175k or below $50k, now is the perfect time. 

If you need any help finding a property above, below or right in the middle of the sweet spot, just give us a call.  We know the market, we know the area and it would be our privilege and honor to assist you with your purchase.

 Our goal is to become the best real estate resource for all of South Atlanta – Henry, Clayton, Spalding, Butts, Rockdale, Fayette and surrounding counties. The ideas in this blog are our personal opinions and subject to market uncertainties. Should we ever be able to assist you with any of your real estate needs, please give us a call at any of the numbers to the right or call our main line at (770) 769-8000.

Like me, I’m sure you’ve heard that “You have to kiss a lot of frogs before you find your prince“.  That may or may not be true in relationships, but it’s definitely true in real estate.  When it comes to real estate, I for one, am not afraid to kiss a frog.  But what does this odd idea of planting a big wet one on Kermit’s cousins have to do with real estate? 

Many people can’t see past the superficial, cosmetic or easily fixed items that a potential house may have.  Paint, carpet, appliances and landscaping are all easy fixes.  Just last week I was showing a buyer some homes.  We pull up and he says “Lets not bother with this one; it looks like the south side of a north bound mule”.  I throw out the old adage that you can’t judge a book by its cover and he only agrees to go inside after more prodding by me.  Once inside he finds the interior is perfect.  We place an offer that evening and at a steep discount.  Yes the landscaping was horrible and incredibly overgrown, but he got an amazing deal. 

How to tell the difference between a frog and a prince? 

Go frog kissing – look at the ugly houses.  See what it will really take to make that house your dream home.  Look to what’s really important to you and look past the bright avocado bathroom and stained carpet.  Does it have the right bedrooms, bathrooms, floorplan, style, design, lot size, neighborhood, school district, etc. 

Protect Yourself

While most of your ugly houses are bank owned and they can be a deal, not all bank owned homes are instant deals.  Use a reputable agent that knows how to find deals and is knowledgeable about the market.  If you do bid on an ugly house, be sure that you’re protecting yourself.  Make sure your offer includes a inspection contingency (5 to 10 days is common) and have the house inspected by a certified home inspector.  This can save you thousands of dollars down the road. 

Don’t Get In Over Your Head

The more work to be done can mean even greater discounts, but don’t step outside your comfort zone.    If you’ve never taken on a major renovation or remodel then stick to homes that need minor improvements.  There are a lot of deals out there that only need paint, carpet and counter tops and can still provide you with an awesome deal. 

Be Realistic 

Some folks have no idea what it costs to replace carpet, paint the interior or exterior or how much physical work it takes to prune back years of overgrowth in a yard.  If you can do the improvements, great… you’re going to save yourself even more money.  For most folks even if they can, it’s so much easier and more economical in the long run to have the work done.  If you don’t know who to call, ask us and we’ll be glad to give you a reference.  We work with tons of reputable contractors and sub contractors.  If your not comfortable accurately estimating the cost of the work, have the sub contractors come out during your due diligence period. 

Financing

There are several programs that are available to help with turning your frog into a prince.   FHA 203K is popular as well as the Georgia Dream program provides up to $14,000 towards down payment assistance and repairs.  Wells Fargo has an excellent program called the remodel express which works like a FHA 203K except all repairs are done by Home Depot or Lowes and all work is guaranteed for a year.  Contact Kevin to discuss which financing option would best fit your situation. 

So the next time your out looking at real estate and that last house was a real looser, just remember that’s one frog down… next house can be your prince. 

Our goal is to become the best real estate resource for all of
South Atlanta – Henry, Clayton, Spalding, Butts, Rockdale, Fayette and surrounding counties. The ideas in this blog are our personal opinions and subject to market uncertainties. Should we ever be able to assist you with any of your real estate needs, please give us a call at any of the numbers to the right or call our main line at (770) 769-8000.

If you’ve been sitting on the fence waiting for the right deal in South Atlanta to come along, well my friend… your time has come.  While the drop in property values throughout South Atlanta has been an unpleasant pill for most homeowners to swallow, it has provided some great opportunities for buyers.   So if your wondering if you too should jump off the fence and buy a home in South Atlanta, the answer is without a doubt yes. 

I realize that many view our profession as a bunch of namby-pamby snake oil salesmen and if you watch the news for more than 5 minutes you’ll be sure to see just how we destroyed the housing market that we’re dependent on for our livelihoods.  That said, we truly are seeing many former “fence sitters” jumping off and making offers.  The phones really are ringing and most are interested in foreclosures.  Right now the prices are amazing… here’s just a few of the deals:

In Henry County look in Lake Dow, Eagles Landing Country Club and Hampton:

• 3 bedroom, 2 bathroom in Lake Dow with new paint and carpet for $151,000
• 6 bedroom, 4.5 bathroom on Winged Foot Drive in Eagles Landing for $209,900
• 4 Bedroom, 2.5 bathroom brand new construction in Hampton for $90,000

In Clayton County Lake Spivey and Fairfield are great buys:

• 4 bedroom, 3 bathroom with a boat slip $224,900
• 5 Bedroom, 2.5 bathroom, John Weiland home for $149,000
• 4 Bedroom, 2.5 bathroom with full brick front, swim/tennis community $149,900

In Spalding County look around the Crescent School District:

• 4 bedroom, 2 bathroom with full finished basement for $69,900
• 3 bedroom, 2 bathroom ranch style home built in 2005 for $82,000
• 3 bedroom, 2 bathroom 4 side brick ranch in great neighborhood $46,900

Ellenwood in Dekalb County is a great buy:

• 3 bedroom, 2 bathroom 4 side brick – great rental property $26,900
• 4 bedroom, 2.5 bathroom, spacious with all black appliances $80,000
• 4 bedroom, 2.5 bathroom, full brick front, 2600 square feet for $94,900

In Butts County check around Lake Jackson:

• 2 bedroom, 2 bathroom sits directly on the lake for $139,900
• 2 bedroom, 1 bathroom on deep water w/floating dock $164,000
• 4 bedroom, 3 bathroom 4 side brick ranch, deeded lot $225,000

So get off the fence.  We’re seeing that the best deals are selling quickly, but don’t worry inventory is still good.  I don’t see prices rising yet, but we are seeing many more full priced offers, which is a positive change.  If you’d like to see more information on any of these properties just drop me an email at alrichard@charter.net and I’ll send them to you along with the full MLS listing on each property. 

Note: Our goal is to become the best real estate resource for all of
South Atlanta – Henry, Clayton, Spalding, Butts, Rockdale, Fayette and surrounding counties. The ideas in this blog are our personal opinions and subject to market uncertainties. Should we ever be able to assist you with any of your real estate needs, please give us a call at any of the numbers to the right or call our main line at (770) 769-8000.

Everyone knows that the historically interest rates we’re enjoying now is the top reason to buy now. The lower the interest rate, the less you actually pay for your house and the sooner you can pay the mortgage off. If that’s not enough, here are four more reasons.

1. Property is a very good long term investment. House prices tend to rise over time, so a house is one of the best investments you can make. Home prices in the U.S. have risen three percent to six percent a year for the past 20 years. That trend is likely to continue. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to grow.
2. Avocado bathrooms, lime green walls, shag carpeting – that’s what you get when you rent. You’ll be able to redecorate and renovate any way you like, any time you like. Rules about the paint colors you can use will be a thing of the past. And you’ll be able to tear out walls, install a powder room and make any other improvements you want. Best of all, if you decide to sell, you’ll recoup at least part of the cost of the improvements.
3. Mortgage reduction builds equity and paying rent builds nothing at all. You’ll be buying a piece of real property rather than putting your money into a landlord’s pocket every month. The real cost of renting is higher than the monthly payment. There is also an opportunity cost equal to the amount you would gain by using the money to purchase a home instead. Even if the house you purchased did not appreciate in price, you would be able to sell it and recoup some of the money you put into it.
4. You’ll pay less tax. You can deduct the interest you pay on your mortgage from your taxable income. The value of this tax break depends on factors like your personal tax bracket, the size of your mortgage, the rate of interest you pay on it and how long you’ve held the mortgage. As a rule, the newer the mortgage, the greater the amount of interest you pay each month and the bigger the tax break. Therefore, recent buyers with young mortgages tend to get the greatest benefit.