Monthly Archives: August 2010

Market Intelligence: Providing the data and analysis to create well-informed market decisions

Posted on August 31, 2010 by | Leave a comment

We have a saying in the NRT Development Advisors’ office:  There is an art and a science behind every decision.  The “art” involves what feels right, relying on a gut instinct that is trusted following years of experience and success.  The “science” removes the emotional and focuses on the facts and figures.  NRT Development Advisors’ Market Intelligence Department provides the science behind our real estate recommendations.

Market Intelligence helps clients make well-informed residential real estate decisions.  Our proprietary Universal Database combines data from MLS and FMLS listings (deleting any duplicates) to recognize trends in distressed and market sales, across all price points. Additionally, weaving in information from a large number of sources – including pre-foreclosure listings, new construction sales, demographics, regression analysis, sales trends and more – allows NRT Development Advisors to assemble reports that no other sales and marketing company has the ability to create.  

Because every data source (macro and micro) has its limitations, we understand that it is important to pull from as many quantifiable sources that are available in order to provide the most accurate market picture. The ultimate goal is to help our clients compare ‘apples to apples.’  

From our in-depth analysis, we are able to make recommendations that answer questions such as:
o    Is this new construction project feasible?
o    What is the gap between market sales verses distressed sales in neighboring communities?
o    How can we best reposition a property to achieve strong sales velocity?
o    Who is currently buying and what are they buying in a particular area?

This type of information is helpful to builders, developers, banks and investors in various stages of acquisition and development.  For instance, we are consulting with a large, established builder that recently entered the Atlanta market.  The builder hired NRT Development Advisors to provide analyses to help them understand Atlanta sub-markets and who is buying in their targeted areas.

We are also working with large investor groups that are purchasing pools of assets from the FDIC.  These groups are using NRT Development Advisors’ Market Intelligence data and analysis as part of their valuations to make market-appropriate bids and have been successful in acquiring assets.

On the opposite end of the spectrum, we are also working with small, local builders that are reentering the market as new partnerships and with different product offerings.  Our Market Intelligence data helps them to build their companies from ground up, ensuring that their early business decisions lead to smart, sustainable company growth.

Whether we are consulting on a contract basis or providing a value-added service for existing clients, NRT Development Advisors’ Market Intelligence Department helps clients make well-informed market appropriate decisions.

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Posted in Uncategorized

Friday Five: Why consumers follow companies on Twitter

Posted on August 27, 2010 by | Leave a comment

By: Brad Horner

As I mentioned in last week’s Friday Five, we have an active Twitter account where hundreds of real estate professionals, reporters and consumers follow us.  We have even helped some of our real estate clients start their own Twitter accounts that quickly acquired large followings.

But starting a Twitter account is easy.  Keeping followers interested in a company’s tweets can be a little more difficult…unless you know what the followers want.

ExactTarget released the results of an interesting study this month that listed the reasons why consumers “follow a company, brand or association on Twitter.”  In an online poll of respondents 15 years old and up, they found the following reasons to be the top motivations:

  1. To be in the know: 38% “to get updates on future products” and 32% “to stay informed about the activities of a company”
  2. To save money: 31% “to receive discounts and promotions,” 30% “to get updates on upcoming sales” and 28%”to get a ‘freebie’ (e.g., free samples, coupon)”
  3. To be entertained: 26% “for fun or entertainment”
  4. To be involved: 20% “to interact (e.g., share ideas, provide feedback)”
  5. To be loyal: 23% “to show my support for the company to others”

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Posted in Friday Five, social media

Don’t Let Market Data Deter Your Customers from A Great Homebuying Opportunity

Posted on August 25, 2010 by | Leave a comment

By: Collin Ellingson 

The data released this week from the National Realtors Association didn’t exactly paint a positive picture of the current market.  National sales for existing homes in July dropped to a 15 year low.  July sales fell by over 27 percent compared to June, and sales decreased 25 percent from July 2009.1

So, your prospects and customers come armed with this information when they enter your sales center, open house, or new listing.  What to do?

  • Listen – Your customer/client needs to know that you are a consultative ally in their home purchasing process.
  • Acknowledge – In order to establish trust and credibility, you must acknowledge your customer’s concerns and fears.
  • Question – Ask direct questions to uncover the true mental obstacles to a purchasing decision.
  • Present a Solution – Turn each objection into a positive opportunity.

 Sure, July sales fell, but that is partly due to the wealth of closing activity which occurred in June as a result of the homebuyer tax credit.  Summer seasonality is another factor.  So, one could argue that the drop in sales was expected.

In addition, most of the favorable “buyer’s market” conditions which existed in the spring are still in place now:

Historically low interest rates: 

  • Historically low interest rates:  As of 8/25, 4.5% on average for a 30-yr fixed, and 3.5% for a 5/1 ARM
  • Housing affordability is still at all-time highs
  • Sellers are willing to negotiate price and conessions
  • Desirable inventory = choice

Most of the new-home communities we represent at CBNRTDA possess readily available financing options, including FHA and conventional project approvals.  

Also, in contrast to much of the competition, many CBNRTDA communities have surpassed 30%, 50%, or even 70% sold-out status.  

Show your clients why and how your listing and/or community is bucking the market trend. 

Use this information to sell from a position of STRENGTH, STABILITY, and SECURITY, and you will often see buyer hesitancy disappear.

 1 “Atlanta Housing Market Suffers Big Setback”.  The Atlanta Journal and Constitution.  August 25, 2010.

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Posted in Atlanta Real Estate, Market data, Nationa Association of Realtors, NRT Development Advisors, Real Estate

Serious About Buying a Foreclosure? Give Serious Thought To Your Offer

Posted on August 25, 2010 by | Leave a comment

By: Marty Griffin

In real estate it has always been about “location, location, location”, and then along comes REO.  Now it’s about “price, price, price”.  We all know that “price” sells; it always has but let’s not get too carried away.  There is a “great price” and then there is a “ridiculous offer”.   It is so tempting in these challenging times to see just how low the seller/bank will go.   This is not about throwing a dart at a price on the wall.  It pays to work with an agent who understands the subtlety of appraisals, the net carry value (what is owed the bank by the previous owner), the value of the neighborhood, etc.  If you are serious about a foreclosure, do your homework.  Make an offer that makes sense.  Demonstrate to the seller that you are a serious buyer not just a bottom feeder.  When the seller knows you are serious, thoughtful negotiations will begin.  Throw out low ball offers and the seller will more than likely come back to you at full price.  A good deal is a good deal for everyone involved in the transaction.  The buyer wants to feel like they got a good value at a great price.  The bank wants to feel like it has done its fiduciary duty and accepted the best deal it could, under the circumstances, for its stockholders.

With that being said, there was some good news about the buying process this past week. 

The National Association of Home Builders will be tackling four issues that are critical to the housing sector which comprises more than 15 percent of the GDP.

 (1)   The NAHB is calling on congress to extend and enhance the $8000 first time home buyer tax credit.  They are calling for an extension of the bill to November 30, 2010 and make it available to ALL buyers of principal residences.

 (2)   Correct the faulty appraisal process.  The inappropriate use of distressed and foreclosed sales as comps in determining home values is hurting home values and killing home sales.  NAHB is urging Congress to work with housing and federal regulators to adopt and enforce clear, concise regulatory guidance that will allow appraisers to develop realistic valuations based on sales that are truly comparable.

 (3)   Improve housing credit conditions.  The NAHB is calling on Congress to urge regulators and the banking industry to end the stranglehold on acquisition, development, and construction loans that has emerged as a major impediment to the housing recovery.

 (4)   NAHB will also co-sponsor Net Operating Loss (NOL) relief legislation in Congress.  This would help prevent further layoffs in building and other industries hit hard by the recession.

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Posted in Appraisels, Bank Owned, Home Builders Association of Atlanta, National Home Builders Association

NRT Development Advisors’ Florida footprint continues to grow!

Posted on August 24, 2010 by | Leave a comment

NRT Development Advisors’ Florida footprint continues to grow. We are now the exclusive marketing and sales team for three new Florida communities:

  • Reserve at James Island located in Jacksonville. The one-, two- and three-bedroom condominiums start at $110,900. Call 904-742-0847 for more information.
  • Cobblestone at Eagle Harbor located in Orange Park.  The one-, two- and three-bedroom condominiums start at $79,900. Call 904-215-1665 for more information.
  • Boca Palms located in historic Kissimmee.  The two- and three-bedroom townhomes start at $110,000. Call 321-277-4797 for more information.

For these communities, NRT Development Advisors provides innovative marketing strategies and veteran sales professionals skilled in the sale of condominiums and townhomes.

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Posted in Company news, NRT Development Advisors

Unique, eye-catching marketing tactics

Posted on August 23, 2010 by | Leave a comment

By: Jessica Weston

In a tough economy, developers are utilizing unique marketing tactics that are eye catching to draw attention to their properties.  Check out this CNN video to see how one of our properties, Villa Sonoma, a resort-style condominium building in the heart of the Perimeter area, is using sign spinners to drive traffic to their property.

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Posted in Sales and Marketing

Friday Five: Find us online

Posted on August 20, 2010 by | 1 Comment

By: Brad Horner

Today’s Friday Five is short and sweet…and resourceful!

I assume that you visit Virtual Views for its industry information, case studies, company updates and other informative posts.  If so, you might also find the following social sites (with which we’re affiliated) helpful:

  1. Facebook –We regularly link to articles of interest, inform fans of upcoming industry events and post about the Southeast real estate market.  We hope that you will become a fan.
  2. YouTube –NRT Development Advisors’ YouTube channel offers a sneak peak inside the walls of the beautiful multi-family and single-family homes that we represent.
  3. YouTube – More than 1.5 million people have visited Coldwell Banker’s YouTube channel, On Location, which includes videos of listings, home buying and selling tips, expert interviews and more.
  4. Twitter – We have a rapidly growing number of Twitter followers from around the nation because of the up-to-the-minute industry information that we post.
  5. Insight Real Estate blog – If you like what you read on the Virtual Views blog, you’ll also enjoy the information shared on Coldwell Banker Residential’s blog, Insights, which includes Atlanta, Dallas/Ft. Worth and Florida real estate information, as well as corporate announcements.

Where are you online?  Leave us a comment below so we can be sure to follow you, as well.

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Posted in Friday Five

The Atlanta BeltLine needs your support!

Posted on August 17, 2010 by | Leave a comment

By: Judy Price

As a City of Atlanta resident, who also works in the City, I’ve been following the Atlanta BeltLine cause now for a number of years. In case you don’t know much about the BeltLine, here’s an overview:

The Atlanta BeltLine is a $2.8 billion redevelopment project that will provide the City of Atlanta with a new network of public parks, multi-use trails and transit along a historic 22-mile railroad corridor circling downtown and will connect 45 neighborhoods directly to each other. The BeltLine will help change the pattern of regional sprawl in the coming decades and lead to a vibrant and livable Atlanta with an enhanced quality of life.

Here’s how you can support the BeltLine this week:

The Atlanta Development Authority and Atlanta BeltLine, Inc. are applying for a federal grant that would provide funding to complete 7 miles of the Atlanta BeltLine Corridor and more than 8 miles of new streetscape improvements abutting the corridor. If it receives all of the requested funding in this application, the Atlanta BeltLine will have a minimum of 11 miles of completed multi-use trail in just three years! This would be huge for this project.

This is a highly competitive grant program, and our support can make a difference. Your signature on the petition will tell the federal government that Atlanta supports the BeltLine and its efforts to use federal funds to build the Atlanta BeltLine. The grant is due on Aug 23rd, so please sign today: http://www.ipetitions.com/petition/atlantabeltline/

For more information on the BeltLine, visit: www.BeltLine.org. You can even sign-up for a free guided tour. I highly recommend it!

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Posted in Atlanta Real Estate

Who’s Who in Residential Real Estate 2010

Posted on August 13, 2010 by | Leave a comment

Congratulations to our fearless leader, Brad Horner, for being included in the Atlanta Business Chronicle’s list of “Who’s Who in Residential Real Estate 2010“!

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Posted in Atlanta Real Estate, Company news

Friday Five: Mortgage rates hit historic lows

Posted on August 13, 2010 by | Leave a comment

By: Brad Horner

This is a headline that real estate professionals don’t get tired of reading: Mortgage rates hit historic lows. It’s a headline that keeps popping up in the news these days, and it’s great news for homebuyers.

Freddie Mac recently reported that both 30-year fixed-rate and 15-year fixed-rate mortgages hit record lows for the Primary Mortgage Market Survey® (PMMS®).  Below are five findings from the report:

  1. 30-year fixed-rate mortgage (FRM) averaged 4.49 percent with an average 0.7 point for the week ending August 5, 2010, down from last week when it averaged 4.54 percent. Last year at this time, the 30-year FRM averaged 5.22 percent.
  2. 15-year FRM this week averaged a record low of 3.95 percent with an average 0.6 point, down from last week when it averaged 4.00 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.
  3. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.63 percent this week, with an average 0.6 point, down from last week when it averaged 3.76 percent. A year ago, the 5-year ARM averaged 4.73 percent.
  4. 1-year Treasury-indexed ARM averaged 3.55 percent this week with an average 0.7 point, down from last week when it averaged 3.64 percent. At this time last year, the 1-year ARM averaged 4.78 percent.
  5. Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease.

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Posted in Friday Five, Mortgage