Why Haven't Mortgage Rates Dropped?

“Why didn’t mortgage rates drop when the Fed cut the discount rate?” A simple question with so many variables that even experts can’t agree. The focus seems to always be on “the Fed”; how does all of the economic news impact decisions made by the Federal Reserve? Through most of 2024, all eyes were on the Fed as everyone wondered if they would cut rates. They finally did in Sept and again in Nov…and mortgage rates, well, they remain about where they were. So, what happened? But, did anyone (other than the disingenuous media) really think rates were getting into the 5's or lower? No one here, nor anyone associated with legitimate real estate organizations, did. 

The Fed & Rates

The Federal Reserve does not directly set mortgage rates. When the Fed…

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HOA Issues Are On The Rise

The bite is severe and it’s going to get worse. HOA issues are on the rise, but the vitriol directed at them is not always justified. Homeowner associations exist to maintain property and community standards; to ensure that owners, their properties, and community property, meet agreed upon standards. Over the last several years, many HOAs have been financially stressed and that stress is being passed to residents. The catalyst was the Surfside Condo collapse, the mismanagement there was a clarion call to many. 

Increasing HOA Fees

HOA fees in Greater Atlanta increased by 12.2% from 2022 to 2024; that was about the median across the country. Two main reasons are behind ever increasing monthly fees; inflation and maintaining adequate reserves. The…

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New Home Issues - Problems with Framing

In this post, we look at new home problems with framing. Home builders excel as magicians; now you see it and now you don't as drywall hides all sins. Framing a home is literally building the skeleton, kind of important to get it done right. The majority of new builds are not "custom homes"; they are common plans that builders prefer. Typically, they have "framing packages" delivered to the site. From there, framing crews get to work. Builders always shop price (some might say always cheapest) for materials and labor. It's all about profit, never forget that.

Trashy Framing Lumber

When I'm stammering for words, it's not good. This builder shops the throw away bins at Home Depot and Lowes; wasn't just this one either. Framing lumber is…

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Skilled Buyer Agents are Critical

Skilled buyer agents are critical to a successful home purchase. Recent changes to real estate law regarding buyer agent compensation are prompting a new batch of "disruptive" and "innovative" ideas. Simply put, there is no substitute for the guidance provided by an experienced buyer's agent. The internet is ripe with "do it alone" advocates; that advice is straight stupid. Buying a home is a rather significant purchase, most buyers are not savvy to the process.  What could go wrong? Well...consider an inquiry that I received.

"After several missed opportunities a listing appeared in XXXX for an unoccupied home as an estate sale and the asking price was in line with market rates, so we made an offer of asking price. We engaged an inspector, but…

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HGTV Home Flips are NOT the Real World!

HGTV home flips are not the real world, so why do so many "investor wanna bees" swallow that hook? In just 22 minutes, you see homes transformed from disasters to diamonds, complete with upbeat hosts exchanging forced banter and crews magically working under budget. Sure, it’s entertaining, but many gullible viewers buy into the fantasy of “getting rich by flipping homes,” only to have it end badly. Trust me, I know. With over 35 years of experience as a full-time broker and appraiser, I’ve worked with both traditional clients and investors. Flipping homes can be a risky endeavor for those who aren’t well prepared — just ask Zillow, Redfin or Opendoor. Combined losses for those all-stars exceeds $1 billion.

Here’s an example, an investor client of…

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Greater Atlanta Real Estate Market 3rd Quarter Report 2024

Looking good. That's the short "to the point" summary of the greater Atlanta real estate market for the 3rd quarter of 2024. Fluctuations? Of course, but real estate is not the stock market and it must be looked at over several quarters to allow enough time for patterns to develop. Q3 especially; July sees closings from May and June, but vacations slow buyer activity. School cranks up in August, always slow as everyone adjusts. Labor Day signals the start of the fall market for the last few weeks of the quarter. It's a challenging but predictable pattern, which is why it's best to compare Q3 '24 to the previous ones. This data here considers the Atlanta real estate market as the counties of Fulton, Cobb, Cherokee, Dekalb, Forsyth, and Gwinnett.

…

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New Home Issues - Problems with Concrete

There's never a shortage of horror stories with home builders around Greater Atlanta. In this post, we look at new home problems with concrete. Problems here can be catastrophic; everything rides on the foundation being properly installed. Unfortunately, what should be done, sometimes isn't (some would say that's routine). While a company might strive to do things according to the "book", enforcing this at the build site while managing budget, time frames and labor often means things don't always happen as they should. The problem here is that a home is only as good as the foundation it sits on.     

Badly Cracked Basement Slab

That video was a spur of the moment thing born of pure anger. That was almost a $2M home, and as I walked around…

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Atlanta Home Sellers Must Adjust to the Balancing Market - Fall '24

As the Greater Atlanta real estate market continues to stabilize, Atlanta home sellers must adjust to the balancing market. The Fed mission of slowing the post pandemic nonsense was achieved; this market is largely balanced. Inventory challenges remain of course, but for sellers, it’s no longer “name your price”. While a few sellers in select areas maintain some sway, the majority will either listen to the market or see their homes sit. Don't be stubborn, the Greater Atlanta real estate market is returning to the more predictable, pre-pandemic patterns.

Atlanta Real Estate Inventory

• The spring/summer ’24 market saw the highest listing inventory in several years
• Homes going under contract were slightly below previous years
• Closed…

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Minor Impact in GA From Realtor Settlement

A few weeks in and the lawsuit real estate commission policies from the NAR settlement are not having a noticeable local impact. In Georgia, the changes are mainly administrative and have most to do with advertising buyer agent compensation. Buyer brokerage agreements were required prior to the settlement, so not a big change there. The main changes in Georgia were added transparency in the forms, further clarity on payment of agent compensation, and that MLS services no longer advertise if the seller is offering buyer agent compensation.

And because the MSM is not accurately detailing things - sellers have not stopped offering buyer agent compensation. We have not had a single occurrence, nor have any of the agents in our orbit. Our sellers…

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Inept Real Estate Agent Costs Buyer Thousands of Dollars

Inept real estate agents cost clients thousands and thousands of dollars. This is often self inflicted; buyers and sellers select agents without proper vetting and research. They remain with them despite poor communication, poor performance and they fail to hold their agent accountable. From inept data analysis, contractual gaffs, improper transaction management and things that you cannot imagine...hack agents cost their clients thousands.

Money Lost on Closing Costs

Here's a very common buyer agent gaff, leaving money on the table. It's also a great example of the buyer's agent NOT working closely with the lender. We listed this investor home at 215K, the buyer was using a conventional loan and putting less than 10% down. The offer came over with a…

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