Category Archives: Real Estate

Real Estate Strategies that Work!

Posted on July 18, 2010 by | Leave a comment

By: Leslie Williamson

I just finished reading  in the Sales + Marketing Ideas magazine the article “What’s Working” by Scott Stroud.  The article was right on target! The article basically describes the tactics and strategies that the builders and developers are using to buck the current market and actually make sales and grow their businesses. 

The described strategies are exactly the tactics that NRTDA is using to increase sales momentum at our  communities.

1) Know your competition.  It is important to know who you are selling against.  Pricing,  incentives and marketing tactics are changing daily and you need to be ready to adjust.

2) Consumer Peace of Mind.  People want to have confidence in the builder and or developer.  They want to know the owner is stable as well as if a condominium community understand the stability of the HOA.

3) Communicate the Value Message. Yes, price is very important to the home buyer but other factors impact the value message as well.  Location and lifestyle are crucial to the value proposition.

Grab hold of the above strategies and you can increase your sales velocity!

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Posted in NRT Development Advisors, Real Estate, Sales and Marketing

Realtors, This is the time to embrace your role of helping clients!

Posted on June 25, 2010 by | Leave a comment

By:  Nancy Keszthelyi

In a recent article, Vicki L. Cox Golder, 2010 NAR president wrote, “For Realtors who specialize in residential sales, this is a time to embrace your role helping clients find a home they can afford and in a neighborhood they love.

Our job at Coldwell Banker NRT Development Advisors brings that expertise to the forefront.  Our agents are well-trained and counseled when it comes to the details of providing valuable service to the buyers, sellers and investors, while maintaining  a high standard of practise.

When looking to hire a real estate agent, buyers should ask themselves, “Who are they working for?”  Our agents are product knowledgeable, informed about the areas (referencing schools, activities, entertainment, religious venues and more) and concerned about the needs and wants of each client.  NRT Development Advisors’ goal is to serve you the client with the finest team of dedicated agents who receive ongoing training and education.  Our agents also educate the client regarding why it is a smart time to buy a house or condominium -not only because of attractive interest rates and tax deductions, but because we all still love the dream of owning our own home.

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Posted in NRT Development Advisors, Real Estate, sales agent, Uncategorized

1Q10 Multi-Family Report Update

Posted on June 17, 2010 by | Leave a comment

1Q10 Multi-Family Report-update

As we reflect back on the first quarter of 2010, many of last year’s trends have carried over to this year.  Many sellers are still heavily negotiating on their prices and the ability to obtain financing remains a challenge.  The home buyer tax credit was just one of many factors motivating consumers to buy homes.  Buyers were also able to take advantage of low interest rates and competitive prices to get a home they may not have been able to purchase a few years ago.  The full extent of the tax credit, however, will not be realized until the June 30, 2010 closing deadline.

New Construction      

Buckhead:

In the Buckhead sub-market, 10 Terminus Place, Gallery Residences, and Paramount lead the way in absorption and helped achieve a 230% improvement in absorption over the first quarter of 2009. 

  • Absorption – up 230% to 43 homes
  • Average Sales Price – down 7% to $588,039

Intown:

Both absorption and average sales price in the Intown sub-market declined from 1Q09. 

  • Absorption – down 27% to 66 homes
  • Average sales price – down 30% to $227,179

The majority of the absorption was from Twelve Centennial Park, Viewpoint, and Element.  It is important to note the Element auction contributed 40 units to the total absorption in 1Q09.

Downtown:

In the Downtown sub-market, Oakland Park, The Stacks at Fulton Cotton Mill, and Kirkwood Station were the majority contributors to absorbed homes during the first quarter of 2010.

  • Absorption – up 15% to 23 homes
  • Average sales price – down 15% to $179,924

Resale

Both the Buckhead and Intown sub-markets had an increase in absorption over 1Q09 while sales prices have continued to decline.  However in the Downtown sub-market, there was a slight decrease in absorption over 1Q09 and a slight increase in sales prices. 

Buckhead

  • Absorption – up 5% to 167 homes
  • Average sales price – down 12.3% to $195,318

Intown

  • Absorption – up 22.4% to 268 homes
  • Average sales price – down 9.7% to $174,372

Downtown

  • Absorption – down 2.9% to 67
  • Average sales price – up 5% to $140,623

Sales prices for both new construction and resale have continued to decline, new construction homes in the Intown and Downtown sub-markets are achieving a 20% to 25% premium over resale, a rate that is considered very favorable.  During the first quarter 2009, the rate was near 40% for both sub-markets.

In conclusion, many buyers are cautiously returning from the sidelines, but they have a new set of priorities and requirements that need to be addressed.

1Q10 Multi-Family Report-update

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Posted in Company news, Condo, Market data, NRT Development Advisors, Real Estate

The rise in metro-Atlanta single-family home sales

Posted on June 16, 2010 by | Leave a comment
By: Bob Romano
Sales of newly built, single-family homes have surged 14.8% to a seasonally adjusted annual rate of 504,000 units in April 2010 (the latest findings to date), as consumers rushed to beat the deadline for expiring home buyer tax credits, according to data released by the U.S. Commerce Department. This was the strongest level of new-home buying activity since May 2008.
And single-family home builders are gearing up for continued demand.  In fact, a June 6 report from the Commerce Department said that spending on single-family home construction surged 3.4% in April 2010.  Building permits for single-family homes in Georgia rose 30% during the first quarter of 2010, the Atlanta Journal-Constitution recently reported.
 
Who is buying?
From our experience marketing and selling single-family homes across the metro area, it seems that the growth in single-family home sales is being fueled by buyers from opposite ends of the buying spectrum: young families and baby boomers. Buyers in both demographics are looking for lifestyle changes.  Young families are looking to become established in neighborhoods in which they plan to raise families.  And many baby boomers are moving to downsize to homes with layouts that allow them to ‘age-in-place.’
What are they buying?
Buyers aren’t looking for the same high-end, one-of-a-kind features, as they have in years past.  They’re prioritizing their needs, focusing only on necessary interior features, and there has been more concentration on boxier houses that are less dependent on exterior features.  Baby boomers are continuing to look for one-level living (master bedrooms on the main level).
 
Where are they buying?
Most single-family buyers continue to have their sights on the suburbs, which offer close-knit neighborhoods, convenient access to amenities and very attractive pricing. For instance, NRT Development Advisors is working with Stonecrest Homes on the development of several of the company’s fully appointed new homes in Harmony on the Lakes – Palisades in Cherokee County.  These new construction homes start in the mid $200’s.  Another new home development with affordable pricing is Millside Manor located in the highly sought after Hamilton Mill area. These homes start in the $160’s.
Smyrna is a hot area for buyers looking for restarts that are closer to the city.  Many new construction cluster homes and townhomes in the area are selling for $290,000 to $400,000, much less than the original pre-construction prices. One such development is Vintage Square, a community of three-story townhomes starting at $294,900.
Why are they buying?
NAR president Vicki Cox Golder recently said that buyers are taking a long-term view toward homeownership. “The typical buyer plans to stay in their home for 10 years, so we’ve put the flipping mentality behind us and most people see housing for what it is — shelter that provides social benefits and is also a good long-term investment.”
In the past two years, a majority of buyers endured reverse sticker shock when it came time to sell their current homes in advance of buying new homes, as their homes were valued at much less than anticipated (and, often, lower than what was owed).  But recently, buyers have experienced a paradigm shift and instead of seeing the process as two transactions – selling one home and then buying another – they’re seeing this as one complete transaction that balances out, making it not too different than home transactions that took place during the last decade (or in the future, when prices rise again).  For instance, while a buyer may lose 30% or so of an investment in an existing home (due to current selling prices), he immediately gains 40% or more in equity in a new home purchase. 
How to attract them?
There is good reason to expect this buying momentum to continue.  Bob Jones, chairman of the National Association of Home Builders (NAHB) and a home builder from Bloomfield Hills, Mich., said,  “Now that the [tax incentive] program is over, other great buying incentives continue – including exceptionally favorable mortgage rates, very attractive home prices and the steadily improving economy.”
But, the recession has caused many home buyers to be very conservative and savvy when making selections, so positioning is more important than ever.  We’ve found that pricing and location continues to trump everything, so be sure to keep these messages priority in your sales strategy. 
Recognize that new construction single-family homes are competing with two- to three-year old resales that are located in established neighborhoods, outfitted with the latest ‘bells and whistles’ and priced to sell.  Atlanta experienced a 6% increase in existing single-family home sales in April 2010 over the previous year, according to SmartNumbers, and sales of these homes are likely to increase as more single-family foreclosures come on board from banks in the coming months.  Therefore, it’s wise to price new construction homes at or below resale price.
And school zones also continue to be a big play in home sales, as young families are buying with children in mind and baby boomers are cognizant of school districts for resale value.  While many buyers are hesitant to budge on their desired number of bedrooms and baths, young families will trade size for location.

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Posted in Company news, NRT Development Advisors, Real Estate

Yes, the American Dream is still alive!

Posted on June 14, 2010 by | Leave a comment

By: Leslie Williamson

Housing Watch recently posted an article stating “from a recent survey, the home ownership dream is in decline.” Forty-nine percent out of the 2,000 persons surveyed believe they will never be able to have a down payment for a home.

As an eternal optimist, I believe that the American Dream of homeownership is still alive and well!  A market in flux is gradually coming to an end and we are once again entering a market of opportunity.  The market is back to a more “traditional” pace of growth and absorption, a far cry from the free fall we recently experience and much more stable than the artificial levels of 2004 and 2005.

According to the NAHB, “Even though the homebuyer tax credit expired on April 30, 2010 and won’t be renewed, there may never be a better time to buy a home than today.”  Most buyers can take advantage of today’s competitive prices and get a home they may not have been able to purchase just a few years ago.

Loan programs are still available to offer affordable down payments through FHA, down payment assistance programs and grants.  The main objective to qualify for the different loan programs to assistance with a down payment is good credit.

Yes, the American Dream of homeownership is still alive and well!

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Posted in FHA financing, First-time homebuyer, Home Builders Association of Atlanta, NRT Development Advisors, Real Estate

Market Response during the last 18 months!

Posted on June 8, 2010 by | Leave a comment

By: Brad Horner

As we approach the mid-point of 2010, I recently took the opportunity to sit down with Susie Proffitt of The Florida Home Show and Atlanta’s Best New Homes to talk about how our company, our clients and consumers responded to the real estate market during the last 18 months.  

Though economic factors continued to impact the industry and create apprehensions and obstacles for potential home buyers, many of our diverse developer, bank and institutional clients were still able to buck trends and increase qualified traffic and, more importantly, sales.  In the below video, Susie and I discuss how NRT Development Advisors helped them to do so by creating and executing innovative, results-driven marketing and sales strategies, including repositioning, partnerships, events, social media outreach and more.

I invite you to take a few minutes to watch the below video (by clicking on the image), which offers insight regarding how to approach the current market and includes video of the beautiful homes we have the privilege of representing.


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Posted in Bank Owned, Company news, Market data, NRT Development Advisors, Real Estate, Sales and Marketing, Value of a home

Do you know the new HAFA Rules? Short Sales made easier!

Posted on May 20, 2010 by | Leave a comment

By: Joan Hertz

Last week a friend of mine gave me an article by Peter G. Miller, Realty Track, which I found very interesting and wanted to share with anybody that was interested.  The below is information is provided by Peter G. Miller who is syndicated to more than 100 newspapers and operates the consumer real estate site, OurBroker.com.

On April 5th the Government instituted these new guidelines that should make the process of buying short sales easier and faster. The goal of the new rules is to reduce the numbers of Foreclosure Inventory by getting the Lenders to unravel the current short sale process that now can take months to close if they close at all.

The statistic from THE MORTGAGE BANKERS ASSOCIATION says that at the end of 2009 the overall foreclosure level was 10 times greater than traditional levels and to make matters worse , we have six states which represent  60% of the foreclosures nation wide according to RealtyTrac- California,Florida,Michigan,Illinois, Arizona and Texas.

 Until now everyone that was encouraged to make short sales offers, found the process long, tiresome and sometimes never got resolved or approved.

Under the government‘s newly minted HAFA: Home Affordable Alternatives Program, the process of buying short sales will be much faster and easier.

What HAFA says is this: When a home is headed for foreclosure lender must get an independent valuation, usually a BPO-Broker‘s Price Opinion. The lender does not have to price the property at the estimated market value, however a sale price must be established and the price must be revealed to the property owner. If a buyer matches or exceeds the stated sale price the Lender must agree to a sale within 10 days.

“With the new HAFA plan the guessing game for short sales prices is gone and so are endless delays , says James Saccacio , Realty Trac’s chief executive officer.” The new system should keep a lot of homes out of the foreclosure process, help Lenders get realistic market prices and allow buyers to make logical and practical offers.

Seller Requirement:

HAFA is designed for borrowers who can’t get a loan modification under the government’s Making Home Affordable plan or who want out of their mortgage with a short sale or a deed in lieu of foreclosure. The catch is that not all properties or owners will qualify for help under HAFA.

• The property must be the borrower’s principal residence and not investment real estate or second home.

• The mortgage must be a first lien originated before January 2, 2009

• The mortgage must be delinquent or default must be a reasonably foreseeable.

• The unpaid balance must be no more than $ 729,750

 • The borrower’s total monthly mortgage payment must exceed 31% of gross income.

Rules for investors

 Not only are there rules for distressed borrowers, there are also rules for would-be purchasers. Deals must be arm’s length transaction and –here is a bigger objection for some investors-the property cannot be re-sold within 90 calendars days of closing.

Follow the money

What makes HAFA attractive for the lender is that they might get more through HAFA than foreclosures. If they get a bid they will have 10 days to find a better bid. The good news for lenders, buyers and owners, is that 10 days after a qualifying bid is received the deal is done and the property is sold.

 In addition, financial incentives are built into the HAFA plan. There is   $1,500 for borrowers at closing, something which may help them move. There is $ 1,000 for services to help them off – set processing costs.

How second lien holders will be treated is fuzzy. The HAFA rules say the “service will allow a portion of gross sale proceeds to be paid to subordinated lien holders in exchange for release and full satisfaction of their liens” – but the exact proportion is a matter of negotiation and no doubt in some cases negotiation will not be possible.

Subordinate lien holders say folks holding the second loan from a home purchased with piggy back financing – can get up to $ 3,000 from the first lenders, and lenders can get up to $ 1,000 from the government to offset such payment. Whether $ 3,000 will be enough to get second loan owners to give up their claim is unknown, but $ 3,000 maybe a lot better than a foreclosure where second lien holders get nothing. In addition to the  $1,500 at closing, HAFA rules, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower”. Translation: Deficiency judgments won’t be an issue with HAFA deals, an advantage for distressed homeowners in the states which now allows all such awards.

Many loan owners will dislike the HAFA rules because by delaying the sale of distressed properties they have been able to hide losses. Now distressed property sales will be faster, meaning the lender books will show losses more quickly.

It is likely that the new rules will evolve into a lending standard for virtually all properties. The reason? Lenders and services won’t want to spend time or money figuring out which properties qualify under HAFA and which don’t it will be easier to just throw them all into one HAFA friendly process.

For specifics you can go to https://www.hmpadmin.com/portal/docs/hamp-servicer/sd0909

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Posted in Real Estate

When Selling Your Home, Consider a Different Approach

Posted on May 6, 2010 by | 1 Comment

By: Bob Romano

When selling your home, consider a different approach to reach your goal. Many home owners today want to move up, down or out of state to improve their lifestyle. Unfortunately many find themselves in a dilemma, their existing home is not worth what they feel they need to make the move. Market conditions on average have effective home values in Georgia 22%, that’s a lot of value and for many it creates a situation that only time will fix. But for those with equity in their home, who are stuck because of the loss of value, thus preventing them from finding a great deal on a new home, there is a solution. However, it does require a paradigm shift. Consider the approach of analyzing the net effect of selling your home at market value and buying a new home at a considerable discount, the net result should pay dividends. Price your existing home to sell in today’s market and go find yourself a equal or better value on your new home, any loss you may incur on your existing home can easily be recovered on your new purchase. Hire a professional to analyze your particular market and price your home to sell, and then get out and find an even better deal.

Keep in mind this is without a doubt the best time to buy a home I have seen in my 25 years in real estate. Don’t let it pass you by.

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Posted in Market data, Real Estate, Sales and Marketing

Mosaic at Millenia experiences surge of investor sales in Q1 2010

Posted on April 27, 2010 by | Leave a comment
Securing multiple purchase contracts per week is a trend that has not been seen in Orlando’s residential real estate market in quite a few years, but it is quickly becoming the norm at Mosaic at Millenia, where Coldwell Banker NRT Development Advisors manages marketing and sales.  Most notable about the sales is that virtually all of the buyers are cash investors, pointing to a return of the real estate investor market in Orlando, which abruptly went from being one of Forbes’ top 10 U.S. real estate markets for investment in 2008 to having one of the highest housing vacancy rates in the U.S. in 2009.  
 
Coldwell Banker NRT Development Advisors ignored traditional real estate marketing practices to sell the units and instead tapped its global network of brokers to identify target buyers.  It didn’t take long to spread the word about Mosaic at Millenia’s uncommonly high occupancy rates, plentiful selection, quality construction and realistic pricing, as well as Orlando’s strengthening economy, before NRT Development Advisors received a surge of contracts.  In the past two months, Mosaic at Millenia experienced a level of investor interest that Florida hasn’t seen in years, possibly pointing to the beginning of a local – or event statewide – market revival.
It seems as if international investors are itching to get back into Florida’s real estate game.  While they may be much more exhaustive when analyzing today’s purchases, these cash buyers are clearly not afraid to jump on sound investments when they see them – as evidenced at Mosaic at Millenia.

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Posted in Investors in Florida, NRT Development Advisors, Real Estate, Sales and Marketing

The Stacks at Fulton Cotton Mill Creates a Partnership with the Community

Posted on April 16, 2010 by | 1 Comment

In December, The Stacks at Fulton Cotton Mill announced a Design a Loft Contest.  For this competition The Stacks partnered with SCAD’s Atlanta campus to get interior design students involved. 

 From January 4 through January 29, The Stacks opened up Unit E126 to aspiring designers to submit design presentations for the loft’s living room, and local students from the Atlanta campus of Savannah College of Art and Design exceeded expectations with their professional-quality entries.  SCAD student Christine Hudson is the first place winner, and as a result, her design has been implemented as a model unit at The Stacks that is now on display for the public and available for purchase. 

The lofts at The Stacks offer aspiring designers a wonderful palette to create a livable design to showcase to the public. Hudson and other competitors were required to adhere to a budget of $5,000 or less (including design fee, furniture, merchandise, paint, lighting and installation) and had to accommodate the profile of a 33-year-old clothing boutique owner who is currently renting in Inman Park but is looking to purchase a new home with her boyfriend who works for the Georgia Preservation Society.  The design presentation requirements included two presentation boards per entry: one for the floor plan and furniture layout and one for illustrations of merchandising and color samples.  Entrants also had to provide itemized costs as well as a design concept statement.

 Hudson’s design concept for the loft living room utilizes a blue, brown and grey color scheme, and features a mixture of modern furniture and antique pieces.  Her chosen furnishings contain clean lines, while the reclaimed wood and artwork convey a message of conservation.  Decorative touches such as a dress form and a floral patterned chair appeal to the prospective female buyer, while the black barstools and simplistic drawing table maintain a masculine component for her boyfriend.

 Not only did this design competition enrich local students’ educational experiences, it also shows prospective loft dwellers what The Stacks has to offer. The Stacks property was originally the Fulton Bag & Cotton Mill which was built in 1881 and was one of Georgia’s most successful late 19th century textile mills.  Originally, the Mill was created to manufacture bags out of cotton bales for use in grain distribution, but when WWI began, the Mill also began to develop and manufacture tents for our troops overseas. Today, The Stacks remain a significant part of Atlanta’s industrial history and are one-of-a-kind homes that serve as the city’s only real New York style lofts with 26-foot ceilings, huge windows, cement floors and so many different floor plans.

Design a Loft Winning ModelThe Stacks at Fulton Cotton Mill is located at 170 Boulevard Ave, SE;404-588-2728. For more information, visit www.stackslofts.com

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Posted in Company news, Event, Interior Design Contest, Real Estate, SCAD