Entries tagged as ‘First-time homebuyer’

Practicing What We Preach – How to Sell Real Estate in this Economy

March 3, 2010 · Leave a Comment

By: Judy Price

In my previous post To Extend Or Not To Extend, I blogged about my belief that the government should extend the first-time homebuyer tax credit. Not only was I listened to, but Americans were also given an expanded credit for those living in a primary residence for more than 5 years. Well, just this past week, I sold my condo (a primary residence of over 5 years) to a first-time home buyer. And how did I do that in this economy, you ask? After doing a thorough analysis of active and sold listings in the market and looking to the success CBNRTDA is having at our on-site communities, I did the following:

• Energy-priced the home so that I was competitive with the market

• Offered an agent incentive (an additional 1% commission)

• Staged the condo so that it always looked like a model home; I even incorporated sound for showings

• Used the extensive internet exposure offered by Coldwell Banker and also invested in regular e-blasts with various messages for the market

• Reached out to local brokers

• Regularly followed-up with prospective buyers

What did I learn from selling my resale condominium in this market? That the tried and true methods CBNRTDA uses each day at our on-site communities are very effective. When I used these same methods, I generating qualified traffic and got the sale. These days, it is a combination of price, exposure and prospecting to go from listing to SOLD!

Categories: First-time homebuyer · NRT Development Advisors · Real Estate · Uncategorized
Tagged: ,

4Q2009 Quarterly Review of Metro Atlanta just released!

February 28, 2010 · Leave a Comment

By: Brad Horner

Welcome to the 2009 Annual Review edition of The Development Advisor, our quarterly report of the metropolitan Atlanta residential market. This report utilizes data based on transactions that closed in 4Q09 and compares it to that of 4Q08 as well as 1Q09, 2Q09 and 3Q09. We have compiled much of our information from our proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication.

As we begin a new decade and look back over the past few years, many of us are relieved that one of the most challenging times in Atlanta real estate may be behind us. Overall, the results in the fourth quarter continued the improvement over the low points established in 4Q08 and 1Q09, signaling further signs of a slow recovery.

Similar to the third quarter of 2009, we continued to see mixed messages indicating a possible long awaited turn in the market. Absorption levels increased for new condo/ townhomes, but decreased for new single family and both types of resale. Average sales prices for new and resale condo/townhomes increased while prices for new and resale single family decreased. Even though sales prices are down overall compared to 4Q08, we have seen a light at the end of the tunnel with resale single family up 0.9%

The most significant news lies in the fact that current inventory levels continued their year long decline in 4Q09, with a 25% decline in all active listings compared to 4Q08. With building permits at historic lows and very little new construction condominium/townhome inventory being delivered in the foreseeable future, there was a 41.5% decline compared to 4Q08.

The extension of the tax credit and the expanded tax credit for current homeowners, combined with historically low interest rates and the second highest affordability index have created the perfect time to take advantage of homeownership. However, the pressures of high unemployment, difficulty in obtaining a mortgage, foreclosures and short sales continued to play a significant role in the uncertainty of the overall market’s improvement.

We hope you will find this edition of The Development Advisor informative and useful. Today’s market is unlike any we have experienced in the past, making it even more important to work with a sales and marketing partner that has a thorough and complete understanding of today’s challenges. We welcome any questions that you may have regarding this report and the future of the Atlanta residential real estate market.

Categories: Housing stats in Atlanta · NRT Development Advisors · Real Estate · Sales and Marketing · Uncategorized
Tagged: , , , ,

HUD is scheduled to report changes to FHA lending!

January 20, 2010 · Leave a Comment

HUD is scheduled to report changes to FHA lending terms in an effort to shore up the program against increased financial losses.

The expected changes are as follows:

  1. Increase the mortgage insurance premium, which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
  2. Require that any borrower with a credit score less than 580 put down 10%.  3.5% down will continue to be required by HUD with credit scores equal to and greater than 580.
  3. Seller concessions will be limited to 3% of the purchase price verses the current 6% limit.

Categories: FHA financing · First-time homebuyer · Real Estate
Tagged: ,

Poised for a successful 2010!

January 8, 2010 · Leave a Comment

By: Brad Horner

Happy new year!

We are proud to share this exciting company news with you.  Based on our 2009 success, we are well positioned in 2010 to be the region’s new homes real estate sales and marketing leader.  The following is just a highlight of our accomplishments:

  • During 2009, NRT Development Advisors lead the market in the implementation of creative repositioning strategies for developer clients with new construction communities, resulting in immediate increases in qualified traffic and closings.
  • We successfully created an innovative sales and marketing platform for bank-owned new construction homes, achieving more than $125 million in sales.
  • The company has expanded its territory to cover Georgia, Florida, North Carolina, South Carolina, Tennessee, Virginia and Washington, D.C. due to client demand.  
  • We surpassed our 2008 sales in 2009.
  • The company attained the status of #1 New Home Real Estate Company in Atlanta for all property types, as well as for Multi-family Sales according to Trend Graphics (which is based on FMLS data).  

Our ability to offer the highest level of resources and talent from a specialized team of new home professionals – as well as the industry insight and connections due to our partnerships within Coldwell Banker, NRT and Realogy Corporation – helped to expand our list of developer and bank clients, services and territory.  
 

It’s rewarding to work for a company that is an exception to the rule in such a challenging economy, as our 2009 success has lead to 2010 growth.  In the past year, NRT Development Advisors worked with real estate developers, investors and financial institutions to develop creative sales and marketing strategies that resulted in large volumes of homes being sold, while still preserving the integrity of developments and neighborhoods, and clients have tapped us to duplicate these success stories in other markets this year.

Categories: New Years 2010 · Real Estate · Sales and Marketing
Tagged: , , , ,

What to research before buying in a multi-family community

December 7, 2009 · Leave a Comment

Buying a home or a condo within a community has become a great option for many buyers. First-time buyers use them as an entryway to property ownership, and busy professionals and retired empty nesters alike enjoy the maintenance-free lifestyle that these communities offer.

But they come with additional considerations beyond what’s included when purchasing a single-family home. Here are the top five items to research in advance:

1. Understand exactly what you are buying when you make an offer, as the word “condo” refers to a legal form of ownership, not a particular type of property. Condo buyers generally own only the interior space of their homes; the exterior structure, land and amenities are usually owned collectively by all of the owners in the complex. Be sure to ask who owns the interior walls? What about the land beneath the home? What maintenance are you responsible for? Do you have your own parking? How many and what kind of vehicles can you park?

2. Research the homeowner’s association—and its board members. Ask for a copy of the association’s financials, including a certified budget and the latest annual reserve study; this can help you determine whether any fee increases are imminent. How is the association organized, and who runs it? How are voting percentages determined, and what would be your percentage?

3. Be aware of all related fees, including monthly association fees any special assessments. How are association fees charged and is there a limit on increases? Check whether utility charges and amenities are included, including pool maintenance. Also, be clear about what maintenance is included in the association fee, and what the condo owner must maintain.

4. Review the complex’s declaration, which helps you determine the monthly condo fee; the bylaws, which include items such as architectural requirements should you want to make any external changes to your condo; plats and plans; and rules and regulations. If the condo association is incorporated, your real estate attorney will want to review the articles of incorporation as well as any proffered disclosure documents. Also, have your attorney check for any “use restrictions” that might prohibit you from renting out the unit, which some associations include to protect financing and refinancing options.

5. Ask about the ratio of units that are rented versus owner-occupied. Your lender will likely require this information.

Condo ownership can be an attractive homeownership option for many buyers. But, it’s important that buyers do their research about the legal and financial implications before making an offer, in order to feel confident when getting to the closing table.

“What to research before buying in a multi-family community” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

Categories: Bank Owned · Closing · First-time homebuyer · Real Estate
Tagged: , ,

3Q2009 Quarterly Review of Metro Atlanta just released!

November 20, 2009 · Leave a Comment

By: Brad Horner

The Coldwell Banker NRT Development Advisors’ 3Q 2009 edition of The Development Advisor, the company’s quarterly review of the metropolitan Atlanta residential market, has just been released. This report utilizes data based on transactions that closed in 3Q09 and compares it to that of 3Q08 as well as 1Q09 and 2Q09. We have compiled much of our information from our proprietary Universal Data Base, a system that pulls data for the entire metropolitan Atlanta market from both FMLS and GAMLS, deleting any duplication.

 Overall,  3Q09 performance demonstrated a continuance of the trends we witnessed during 2Q09, demonstrating  significant improvement over 4Q08 and 1Q09. During the third quarter, several key indicators suggested the beginnings of a possible stabilization in the market, while other data revealed a market still very much under pronounced stress. Absorption levels increased for condo/townhome product, but decreased for single family homes. Resale price increased slightly, while price for new construction showed a continued decline. The pressures of high unemployment, difficulty in obtaining a mortgage, foreclosures, and short sales continued to play a significant role in sustained market volatility.

On the positive side, the $8,000 first time home buyer tax credit, historically low interest rates, and the second highest affordability index on record have combined to encourage homebuyers to move from the sidelines and take advantage of home ownership. The extension of the tax credit and the introduction of a credit for current homeowners should bolster sales volume through the winter months and into 2010, though sustained levels of foreclosure activity will likely keep a lid on any significant increases in average sales price.

 For the 15-county metro area, 3Q09 total absorption was down 10% compared to 3Q08. However, quarter over quarter results showed a general continuation of 2Q09 market performance. Compared to 3Q08, resale absorption was down by 6% while new construction declines exceeded 26%.

 When compared to 3Q08, the fall in average sales price continued to be more pronounced in resale transactions versus new construction, primarily due to short sale and foreclosure transactions.  However, new construction will likely close the gap in the months ahead, as aggressive pricing strategies implemented by developers and banks during the second and third quarter begin to show up in closing data.

 With building permit issuance at continued historic lows, 3Q09 combined multi and single-family inventory levels remained well below 2008 levels.  Reported new construction inventory levels were 43% below 3Q08 figures, and ended 8% below 2Q09 levels. While 3Q09 resale inventory decreased 15% since 3Q08, levels increased by approximately 4% over 2Q09.   Sustained high levels of unemployment will necessitate close monitoring of foreclosure activity throughout the balance of 2009 and into 2010, as this presents the greatest challenge to normalizing supply levels.

We hope you will find this  edition of The Development Advisor informative and useful.   The challenges of the current market are complex and require a multi-disciplinary approach, making it even more important to work with a sales and marketing partner that  possesses the ability to assess the current environment and anticipate future conditions. We welcome any questions that you may have regarding this report and the Atlanta residential real estate market.

Categories: Real Estate · Sales and Marketing · Uncategorized
Tagged: , ,

Good News! Home Buyer Tax Credit Extended!

November 6, 2009 · Leave a Comment

By: Christine Macrenaris

The ongoing discussion whether or not the government will provide an extension for the homebuyer Tax Credit is finally put to rest! The President signed the bill into law today that extends homebuyers and unemployment benefits.  While the first Tax Credit program of 2009 focused on first time buyers, the addition of the repeat buyers will free up the middle market by allowing homeowners to sell to first time buyers and allow these buyers to “move-up”.  Finally there is an answer for buyers who continue to ask “what’s in it for me?” Below are highlights of how the homebuyer tax credit will work:

  • Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
  • Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.
  • Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.
  • Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
  • How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
  • New anti-fraud limitations imposed.
  • Cost: $10.8 billion.

Source: Bloomberg Press and Associated Press and confirmed information with the content of the Senate bill

Categories: First-time homebuyer · Sales and Marketing
Tagged: ,

Defining Value

October 21, 2009 · Leave a Comment

By: Maria Mena

Value is a word we hear frequently today. In today’s economy it is being used by marketers to draw us to their product.

 Value is a word that we learn early in our lives. As toddlers we are fascinated by the clinking sound of coins as they hit the belly of our new piggy banks and quickly learn to distinguish the differences in coins. At a young age we learn to distinguish the value of numbers; we quickly learn to value our food, our parents, our pacifiers, our toys.

Then, as the circle of our lives expands we learn to value more.

 Yet, this word continues to perplex and challenge us throughout our lives. As people we value our health, our family, our religious beliefs, our marriage, our friends, our country, our freedom, our cities and communities, our neighbors, our home teams, our homes, our safety, our abilities, our jobs, our time off, our vacations, our investments, our pride, our privacy, in short…our lives!

 At some point most of us come to realize that sometimes we must choose among the things we value most and making choices can be difficult.

 The reality of having to make choices, when looking for a home hit me like a ton of bricks when I moved back to Atlanta in 1991. I wanted to live in a certain neighborhood but I wanted a home that was in another.

When I reconciled the neighborhood issue then other value questions arose. I wanted the kitchen of one house, the garage of another, the backyard of a third, for the price of the fourth!

 When looking for a home it is important that you clearly understand what you value the most. Make a list of your priorities and communicate this to your agent.

You should distinguish “wants” from “needs” when looking at houses and rank them in importance and then look for a home with the most important features that are “needed”.

 It’s fine to want it all, but be clear with yourself regarding what you value most and what as a buyer you actual need.

There are a variety of homes on the market and you should not feel the need to settle.

Take advantage of the great value of buying a home today.

Categories: Real Estate · Sales and Marketing · Value of a home
Tagged: , ,

Under Contract – What a great feeling!

October 12, 2009 · Leave a Comment

By: Leslie Williamson

A market in flux. A market of opportunity. According to the economists, a market in flux is coming to an end and a market of opportunity  has begun to take place. We have begun to get back to a more “traditional” pace of growth and absorption. Although the housing industry will more than likely never return to the artificial and unsustainable levels of 2004 and 2005, the American Dream is still alive and well. Homeownership has never been more important to the average consumer.

During the past 120 days Coldwell Banker NRT Development Advisors has taken advantage of the market in flux to create a market of opportunity by repositioning new home communities to sell-out in a tough and competitive environment, but also be a viable for sale opportunity to the consumer. With competitive pricing and aggressive marketing illustrating the value, the final release of homes are under contract and closing at the following communities: Regatta located on James Island in Charleston (more than 50 homes under contract in 120 days) and Mirabella located in Jacksonville (more than 25 homes under contract in 90 days). Just goes to show that strategic positioning is essential in any type of market.

Categories: First-time homebuyer · Real Estate · Sales and Marketing
Tagged: ,

To Extend or Not to Extend?

October 9, 2009 · 1 Comment

By: Judy Price

Estimates place the overall number of new homes purchased with the first-time home buyer tax credit at 1.2 Million, with 400,000 homes bought by those who would have never done so in the first place. With the credit set to expire on November 30th, the debate about its extension now goes all the way to Capitol Hill.

This week, Congress did vote to extend the 8K tax credit for the next year to servicemen and women who actively served overseas for three of the last twelve months. This bill now moves on to the President. What remains to be seen if the extension will apply to all first-time buyers or beyond that to all home purchasers.

The market data continues to show signs of hope. On September 29th, the most recent Case-Shiller indices reported that the data from July showed house prices in the United States increasing for the third month in a row. And the August Pending Homes Sales Index posted its seventh consecutive monthly gain in August, the highest reading in 2-1/2 years. In my previous post,  I expressed concern over unemployment’s effect on recovery. Almost 10% of our population is more concerned about finding a job over purchasing a home. It sounds as if we’re stuck in a catch-22. Since housing is such a large part of our economy, it would make sense to continue to provide ways to stabilize it. But if the unemployed cannot qualify for a loan, they won’t have an opportunity to take advantage of the tax credit, resulting in a prolonged recovery in the housing market.

Interest rates remain low, and for those who can make the move, it remains a great time to buy. Would an extension of the tax credit result in another 400,000 new purchases that could boost the economy? I say we should give it a try. As bipartisan support for the extension gains momentum in Congress, it is possible that six-twelve more months of the tax credit may be on the horizon.

Categories: Bank Owned · FHA financing · First-time homebuyer · REO · Real Estate · Sales and Marketing
Tagged: , ,