Important info for home sellers in the Greater Atlanta area

The grizzled crusty veterans feel it and the questions are starting...is the Atlanta real estate market shifting? Has the move away from historic inventory shortages and home buyer frustration finally started? That argument can be made...and while the data lags by several weeks, the radar of many experienced agents is lit. The feeling in the field can't always be immediately confirmed but we're beginning to see the data evidence. It'll take a few more months as markets always tend to "feel" before the "proof"; that's just a challenge of the business. One thing that's not debated, the mortgage rate increases (with more promised) have been an ice bucket challenge to the market.

But first -it bears repeating that "the Atlanta market" is not a monolith; it…

283 Views, 0 Comments

April breaks over Georgia and the pencil necked geeks hike up their socks and tape up their glasses. It's time to answer the nagging question…did freddy blassy wrestlerhousing inventory in Atlanta increase during the first quarter of 2022? Well that answer is more than a yes/no binary option, context is needed and that’s best done by looking back a bit. The first quarter of any year around Atlanta tends to set up the second one. Traditionally, the months of May and June see the most new listings as the school cycle hits – graduating families sell and rising families buy. This year however, rocketing mortgage rates and other economic challenges may change that.

The charts below focus on key indicators; number of listings, number of sales, days on market and sale to list…

622 Views, 0 Comments

climbing a rock wallIt’s hard to find a housing market not presently on fire, Atlanta is no different. Compared to a decade ago and the worst housing crisis ever, this market turn around improvement is among the tops in the country. The 2022 market could not be more different than the 2010-12 market...over 100K homes were on the market during the darkest days. The Atlanta real estate market explosion is due in large part to its broad appeal, size and vast selection of properties. The “Atlanta Real Estate market” is a misnomer; the area is akin to spilled glass of milk. With no natural boundaries, it sprawls over 8 to 16 counties depending on who sources the information. Each area is its own micro market but all contribute to the overall "Atlanta housing market".

The…

800 Views, 0 Comments

Much of the nation spent the last two years holed up, staring at the TV waiting for instructions from Anthony Fauci. Meanwhile, the Atlanta real 60 Billion Housing Grab by Wall Street - Info graph New York Times Magazineestate market exploded and subtle fundamental changes began to appear. Zillow crashed in spectacular fashion, other iBuyers dabbled grew their presence a bit more and institutional investors decided they really love homes. Atlanta has always been an investor darling, but over the last couple of years, activity has exponentially increased. "They" know something...Wall Street is far ahead of the real estate curve and what they anticipate seems to be coming into focus. They're on a massive buying spree and tightening the chokehold; the impact on home buyers, especially in the Atlanta market, is brutal. Their…

1964 Views, 0 Comments

So what happens if the appraisal is below contract price? The early '22 market is already showing it'll be as tight or tighter than the '20 & '21 markets, buyers are tossing off all constraints to "win" the beauty contest of buying a home. Appraisals below contract price will continue to be a challenge in 2022. Consider, appraisals this year will be using data from the already insane market of 2021 and many will still fall below contract. Remember, the buyer’s loan is based upon the lower of the contract price or appraisal. The appraisal contingency protects the lender – and indirectly the buyer – to ensure the home can be sold for at least the loan value. Buyers that waive or modify the appraisal contingency need to have cash on hand to make up any…

2922 Views, 0 Comments

The discussions surrounding the question of “what’s a home worth” will never end, because there is no standard answer. Sure the reflex text book answer is “what a buyer is willing to pay” but that’s hardly the complete picture. A home has a number of “values” and most are not tied to the buyers in the market. There is a best answer of course, it also happens to be the simplest one. Spoiler alert...it’s not what it sells for. This short clip provides a common sense overview, below that we get more into the weeds.

Purchase Price

The purchase price is the amount the buyer agrees to pay the seller; this tends to support the “it’s worth what a buyer will pay” idea. Does it? Consider:

  • The costs of selling – commissions, repairs, closing costs,…

999 Views, 0 Comments

It’s with a MASSIVE dose of “we think” that we offer our latest opinions (12/16/21) for the first quarter of the 2022 North Atlanta real estate market. It's not a rosy outlook; expect home buyer frustration to increase in 2022. Rates are likely to increase as the Fed just responded to the record high inflation, planning at least three rate bumps for 2022. The prognosticators are out there already making bold claims; you can find the overt optimists and you can find the dark pessimists. So what's in store for home buyers and sellers that have to make a move this spring? Well given this environment, we’re not going to look much past the first quarter or so. Buyers will again be challenged and sellers will reap the reward…until they become buyers. As usual,…

1825 Views, 0 Comments

Size matters. It matters because you live in that space, you pay for and tax on that space, and you maintain that space. One day, you’ll sell that space. Size matters so you better understand how it’s determined…because many in the real estate industry don’t. They don't because no one makes them; the confusion over how to measure a home is due in part because there are no agreed upon standards.

Many variables influence the price of a home, size is one of the most influential. How many times is “price per square foot” referenced? Using price per square foot to value a home is unreliable, it is wildly inaccurate for multiple reasons. But it's accepted and big homes rule; you don’t typically see small homes at the top of the value range. Families are the…

1486 Views, 0 Comments

Price per square foot is unreliable to value homes. It is without question one of the most quoted "sources" when home values are discussed but it is so flawed that on any level, it cannot stand even the softest of challenges. In fact, price per square foot is so unreliable that it makes  automatedvaluation models (think Zestimates) look reliable.

The idea that something as unique as a home can be "valued" using a method with at least 10 major variables is idiotic. Yet and still, price per square foot is bandied about as some type of cornerstone when home prices are talked about. It falls cleanly into the "garbage in, garbage out" research idiom as nothing in the data used to ascertain that "value" is credible. The typical real estate agent doesn't even…

720 Views, 0 Comments

It’s closing day and the buyers walk the home before heading to the attorney’s office. But not all is right when the door swings open. What happens if the seller didn’t make the agreed upon repairs? What happens if the HVAC isn’t working? Can a home buyer terminate on closing day because of condition and refuse to close? Maybe. The most common problems are changes in the home from contract to close and agreed upon repairs.

Substantially the Same

The GA Association of Realtors (GAR) contract stipulates that the property will be in substantially the same condition as it was on binding agreement date.  Briefly: “Seller warrants that at the time of closing, the Property and all items remaining with the Property, if any, will be in substantially the…

1059 Views, 0 Comments