My New Blog

THE TAX CREDIT IMPACT ON OUR MARKET: IT’S DIFFERENT

While pricing has fallen and credit restrictions have certainly not eased, there is one bright spot for home sellers in this market. The $8,000 tax credit that was formerly only available to first time home buyers has been extended to contracts accepted before April 30^th and expanded to include a tax credit of $6,500 for move-up/move-down/move-out buyers. This tax credit is driving much of the activity in our market now. I have sellers who are using it to off-set some of the hit they’re taking from the decline in their own property’s value. I have buyers who are “getting off the fence” to take advantage of it.

I have more detail on the credit here: http://www.bestgeorgiahomesearch.com/$8000TaxCredit

INTEREST RATES ARE GREAT BUT CREEPING UP & HIGH END LOANS

Rates are still great, but they're pushing upwards a little.  Overall, until now, there's never been a time when prices were low and rates were low at the same time.  That's a beautiful thing for buyers, and it's been enough to get people interested.  If you're a high end seller, there's good news for you, too, since there is definitely a bright spot in the way of JUMBO mortgages. No need to sugar coat it, it’s still tough to qualify for these loans, but AT LEAST they’re doing jumbos again, and the rates are much more in line with a conventional note.

TIMING YOUR HOME’S LISTING BACK INTO THE MARKET

Normally, I say the period after February 15^th through the end of March/ early April is good. That’s because, historically, warmer weather gives us better traffic. The market still moves fastest for closings during the period of time when school is out, however, the tax credit is currently scheduled to expire on April 30^th, so you’d like to have as much time as possible to use that as leverage.   The sooner, the better!

MARKETING EXPOSURE MUST BE MAXIMUM IN 2010

We continue the tried-and-true internet marketing blitz-- after all, over 90% of today's buyers start their search on the internet.  We also believe in the “old school” use of flyers when marketing our listings, as long as they're full color and look nice. I like to market within the agent community by having an agent open house as soon as possible. 

The bottom line with regards to marketing:  We believe in saturating every media outlet for our sellers--the virtual tour, postcards, and the internet and print ads are all staple tools that we rely on to put these properties visible to the buying public.

Good luck out there.  As always, let me know if there's anything we can do to help you take advantage of an improving market.  If you get my voice mail, PLEASE leave me a message.  I always return my calls.

Jackie Campbell, Realtor  678-416-2326

Save More Money for Going Green

You may have heard about the tax credit for updating to energy efficient appliances, but did you know that Georgia has a REBATE FUND for residents who replace an existing appliance with a new ENERGY STAR qualified appliance?  The American Recovery and Renvestment Act of 2009 reserved $8,642,490 for Georgia residents, to be given out on a first-come-first served basis.  The program launched on February 12, 2010 and the funds are already down to just under $8,000,000. 

Improves the Value of Your Home at Resale

One of the reasons I recommend that my Sellers look into this program is that keeping your home's appliances current and in top-working order always translates into a higher sales price.  Energy efficient homes sell for as much as 10% higher on average, and phasing out those "old energy hogs" will improve your home's overall energy efficiency rating.  Plus, you'll personally benefit from having lower energy bills, and we can all feel better about making a real effort to have a positive impact on our environment. 

Find Out More About the Rebate Program

Go to www.GeorgiaRebate.com for more details on the program.  As always, if you're wondering which improvements will translate into the highest return when you're selling your home, call me at 678-416-2326!

Thanks!

Jackie Campbell

The question was recently asked:  "Which cities appreciate best as far as home markets among Peachtree City, Senoia, Sharpsburg, and Newnan?  People say that ranking for East Coweta High School is getting better and better and will be the best in the future.  Is it true?  Is Peachtree City also going to be among the best in the future?" 

Here was my answer:

East Coweta High School has made great improvements and should continue to do so based on the strong supporting tax base that is found in Summergrove and other ECHS subdivisions, including up-and-coming developments in Senoia. To say that they will be "the best" may be a little longer term prediction, but not out of the realm of possibility.

Peachtree CIty schools are already there. As a result, Peachtree City values have been less affected by the downturn in the market, so it's more challenging to acquire a property "for less" there. That doesn't mean that the properties won't appreciate in PTC, just that they are more likely to appreciate at a more moderate level since you probably won't be able to pick them up at huge discounts.

I attended a realtor focus group where every realtor was asked to rank "affluence perception" of all of these areas. Peachtree City, was of course, at the highest end of the scale, and Senoia was at (at the time, and that's been just over a year and a half ago) the lowest. Sharpsburg was second and Newnan was third. However, I think it's extremely important to consider what is happening in Senoia (Riverwood Studios, downtown revitalization, lots of clever marketing that positions it as a "folksy-hometown-cultural-"bright-spot") when you are factoring in possible appreciation there.

Even so, Senoia continues to be a speculative play, since it still has the "rural and remote" perception that does not necessarily attract a commuting clientele. After all, it's that remote and rural image that caused the realtor community to report that their clients think of Senoia as less affluent. Still, with the attention that the movie industry is bringing, along with the glossy feature in a well-read, well-respected magazine, Senoia could be an excellent opportunity for growth and appreciation.   Just think of all the phenomenal improvements that have already been made in this up-and-coming community!

Ultimately, any property you choose to buy should include an EXTENSIVE consideration of what fair market value is for that specific property. Watching area trends is an important first step, but it's only part of the equation.

This week's blog addresses a specific question about historic home pricing. 

Someone recently asked "Are homes in the College-Temple Historic District in downtown Newnan retaining their value?  It's difficult to compare values of renovated historic houses to new houses."  Here's my answer:

The true challenge in determining the value of a specific historic Newnan home lies not so much in comparing it to new homes as it is in comparing it to other historic homes. As is the case in all real estate markets--In downtown Newnan, it's all about location, location, location. Whether your house faces Washington, College, or one of the "less restored" streets as you move farther away from The Square makes all the difference.

Another factor is condition. With historic homes, it's not enough that the house be in great condition. Any renovations must have been done so that the charm and character of the property were not lost. Examples would be: were the hardwood floors stripped and refinished or was laminate installed? Was the wood siding repaired and painted or was vinyl siding installed? To achieve optimal historic property value, laminate flooring would not be acceptable, at least not in the main parts of the home, and vinyl siding should be used very minimally (fiber-cement siding would be a better choice).

The diversity of the prices of the homes is unbelievable. I've done market analysis that included two historic homes within a two block radius of West Washington--one comparison property sold at over $200 / per square foot and the other at only about $50 / per square foot.

If you are thinking of buying a historic home, look to your realtor to guide you on concerns about value over the long term. Ride by the property at different times of the day and WALK from the property to the areas of downtown that you most enjoy. You should also DEFINITELY do a home inspection--not just to identify any defects or safety concerns, but to make sure that you'll know about the quality of any restoration work that might have been done to the house.

If you are thinking of selling a historic home, make sure that any value assessment of the home includes homes that are as similar to yours as possible. Don't consider comparables that are "on the other side of The Square" from your home, or in states-of-renovation that are very different from your home, to be included in the analysis if you can help it. It's very much a case of individual case basis, and you must do your homework.

One more note: I may be a little biased, but Newnan has one of the most charming downtown communities around! With the ecclectic shops, the great restaurants (who can deny that Fabiano's pizza is some of the best in the South and let's not forget that Andre's on the Square is an honest-to-goodness 5 star restaurant), the architecture of the old courthouse and the many churches, it's easy to understand why it's so beloved. This Old House Magazine even named Newnan's downtown in the top 100 in terms of appeal of our historic homes. Still, this area of the Coweta County market has not been exempt in feeling the downturn in the real estate market.

Good luck out there!

Congress has agreed to extend the $8,000 tax credit beyond the original November 30th deadline and to expand it to existing homeowners in the form of a $6,500 tax credit.  Both credits will be available until April 2010, in an effort to continue stimulating the housing sector of the economy. The Senate voted 98-0 on Wednesday and yesterday the House voted 403-12. The President is expected to sign the legislation, perhaps as early as today.

I'll be posting links to more information on the credits, including a link showing the differences between the two credits and a link to Frequently Asked Questions. 

Stay tuned for more.

I recently had a question about whether a Seller should convert their 2 car garage into an extra bedroom.   While I frequently have buyers who require a garage as part of their search, and who won't even look at a home without one, I decided to study the actual numbers as part of my formal response.

It's no surprise:  In general, Coweta and Fayette homes with garages sell MUCH faster than other homes in the Newnan and Peachtree City area that do not have garages. So, what were the results of the analysis?

IT'LL MOST LIKELY TAKE MORE TIME TO SELL IT!

You'll want to think about keeping that garage, since the statistics show that you'll probably find it more difficult to sell when you get ready to move on if you convert the space to anything other than a garage. Some price ranges added as much as 200+ days to the average time on market when no garage was available--and the numbers were up across the board. In Coweta County, the average days on market (across all price ranges) of homes WITH garages was 141. The average days on market (across all price ranges) of homes WITHOUT garages was 308.   The time was also up in Fayette County, but on a less pronounced basis:  there, it only added 5 days to the time on market (average) when there wasn't a garage.

IT WON'T SELL FOR AS MUCH (AVERAGE COST DOWN ABOUT $80,000 IN COWETA AND $55,000 IN FAYETTE COUNTY)

Perhaps the most important number?  The average sales price was ALSO affected: The average sales price in Coweta County for homes without garages was $113,440 compared to the average sales price of $193,722 for homes WITH garages.   In Fayette County, the average sales price was $270,448 for homes WITH garages, but only $215,980 for homes without one.

I would consult a realtor to study your specific situation before you move forward with ANY remodeling effort, but particularly if you're thinking of sacrificing the garage.

Good luck to you!

Great News!  You've got a buyer for your home, and the next step is to have it inspected and appraised.  Guess what?  Both the home inspector and the appraiser will be influenced by the CONDITION of your home, and taking care of routine maintenance items now will greatly improve how you fare in the home inspection and appraisal process. 

Your realtor has probably had you address some of these items before listing your home for sale, since--you guessed it--BUYERS are also influenced by the condition of a property.  Even so, in case you've missed a few things, here are some tips to help you.  Don't overlook the importance of items to do on the day of inspection!

BEFORE THE INSPECTION:

EXTERIOR:

1. Make sure all the dirt and landscaping material is away from the siding of the house. There should be 4-6 inches of clearance beneath the siding of the house.
2. Plant growth should be cut back away from the house at least 10-12 inches.
3. Any stored items should be moved as far away from the structure; stored firewood in particular should be moved as far away from the house as is reasonable.
4. Check the siding and trim for any damages and repair as needed.
5. Repair any missing caulking around doors, windows and over nail heads.
6. Make sure all exterior doors and door knobs/deadbolts are operating properly. You may wish to repair any damaged weather stripping.

ROOFING & GUTTERS:

1. Clean all moss and debris off the roof. Use a pressure washer only if absolutely necessary. A broom or blower is preferred.
2. Repair any damaged or missing roofing. Avoid using mastic or caulking as a repair as it is considered a temporary repair only and may be called out by the inspector.
3. Clean out gutters and repair any damages to the gutters such as rust through or sagging.
4. Make sure all downspouts are properly diverted away from the house, either with elbows and splash blocks or drain lies.

GARAGE:

1. Check the garage door opener and adjust it as needed so it properly reverses against pressure.
2. Make sure the garage door itself is operating properly and repair as needed.
3. If the home is newer with a solid core, self-closing door to the interior, make sure the door closes and seals properly by itself, with the weather stripping intact.

KITCHEN, UTILITY, & BATHROOMS:

1. Check for leaks under the sinks and around the faucets, repairing as needed.
2. Look for possible floor damage around toilets and adjacent to tubs and showers. If found, damages may need further evaluation by a contractor.
3. Make sure that all grout and caulking is in good repair. This includes tub and shower surrounds along the floor in front of tubs and showers.
4. Check to be sure all fixtures, fans and appliances are working properly.

INTERIOR & ATTIC:

1. Check interior doors and windows to make sure they are operating properly. This is particularly important for bedroom windows.
2. Make sure smoke detectors are in place and functional.
3. Removed any stored items from the attic space. Check to be sure all fan ducts are properly connected and venting outside the attic space. Repair if not.

ELECTRICAL:

1. Make sure all light switches are functional and any burned out light bulbs replaced.  I can't tell you how many times "possible spent bulb...seek the advice of an electrical contractor" caused unnecessary anxiety.

PLUMBING:

1. Check your water heater for any leaking or damage. If present, repair or replacement may be needed.
2. If missing, install proper rated earthquake strapping to water heater.
3. Make sure the water heater pilot light is on.
4. Repair any plumbing leaks found in the crawl space.

HEATING & COOLING:

1. Inspect your furnace filter and change, or clean, if dirty.
2. Regarding air conditioning, make sure all debris is cleaned away from the exterior compressor.
3. Regarding a gas-fired appliance, which utilizes a pilot light, such as a gas log fireplace or older furnace, make sure the pilot light is on. The pilot light may have been turned off for summer or if the house has been vacant.

CRAWL SPACE:

1. Remove any wood, concrete, form wood and cardboard debris.
2. Remove or replace any damaged, fallen floor insulation.
3. Make sure crawl space is fully covered with plastic. Only use 6 mil black plastic if adding more.
4. Repair or replace crawl space access. Cover if it is decayed or damaged.
5. Reconnect any disconnected heat ducts.
6. Repair any damaged foundation vent screens and make sure all foundation vents are clear. Use only ¼ inch galvanized hardware cloth for repair. Don’t use any louvered type vents.

ON THE DAY OF THE INSPECTION:

1. Make sure all animals are secured.
2. Remove/ unlock any locks on outside gates, which prevent full access to the exterior.
3. Make sure all utilities are on.
4. Be sure there is total and complete access to the following areas:
1. Electrical Pane. (Panel cover will need to be removed)
2. Furnace. (Furnace cover will also need to be removed)
3. Water Heater.
4. Attic Spaces. (Inspector will need to access inside attic space)
5. Crawl Space. (Especially if it is inside a closet full of stored items)
6. All bedrooms and living areas.
7. All exterior surfaces, siding, decks, etc…
5. MAKE SURE THE HOME IS CLEAN AND PRESENTS AS IF YOU ARE GOING TO SELL IT ALL OVER AGAIN!  Appraisers and inspectors are people too.  A tidy house infers that it is also a well-maintained house!

Real Estate Market Update for Coweta, Fayette, and S. Fulton Counties

Good News and Bad News for Peachtree City, Fairburn and Newnan Area Home Sale Markets

Coweta County: Including Newnan, Sharpsburg, Senoia, Grantville, and Parts of Palmetto

Patience continues to be key for home sellers in Coweta County. There is no price range that is under 100 days on market (average) and the overall average market time for listings is 159 days. The strongest sales are in the $125,000 to $175,000 price range, and the weakest performing price range continues to be in the $1 million+ market, where the average days on market is as high as 323 days.

The good news is there is evidence that the tax credit is driving an increase in buyer traffic as is shown in the current number of pending sales. Remember, these should lead to a healthy increase in September and October closings. Pending sales are up by almost 7%.

Foreclosure activity had retracted during the period of January to June and remained static in July. However, August saw a 15.4% increase in the number of new foreclosure listings.

Ending on a positive note for Coweta County, it’s only a matter of time before FALLING INVENTORY levels—down about 25% over last year!--translate into higher sales prices.

Fayette County: Including Peachtree City, Tyrone, Brooks, and Fayetteville

Fayette County inventory levels were down almost 30% in August, continuing a trend of dwindling available homes for sale that keeps the market healthy in this area. While the average days on market is still higher than in years past (119 days average in general and as much as 404 days for the luxury market), the number of pending sales is up significantly. In fact, pending sales are up a full 1/3 over August of 2008, and that should generate a nice September for home buyers and sellers.

A lower number of foreclosures is helping keep inventory levels down. July had 16% fewer, and August had 34.5% fewer new foreclosure listings in Fayette County!

S. Fulton County: Including Union City, Fairburn, College Park, East Point, and parts of Palmetto

Wow! The number of listings under $100,000 is unbelievable—365—and the average days on market in this segment is a low 97. South Fulton County is one of the most affordable areas in the Atlanta metro, because the market correction in this area has come largely due to an exceptionally high foreclosure rate, making it really painful for area home sellers.

The good news in S. Fulton County is that area sales are SUPER HIGH and inventory levels have fallen overall. While the median price is only $90,000 here, the number of sales since January 1 is a staggering 1,528 (compare that to 700 in Coweta County and 708 in Fayette County) and there are 230 pending sales in the system. Almost half of the pending sales are within the under $100,000 segment, with the next strongest segment being the $100,000 to $124,000 range.

With almost every offer being met with competition here, I am seeing foreclosures in this area sell well over list price—as much as $20,000-$30,000 OVER the ask price on several occasions. So, if you find a property that you like in this area, and it’s listed at a price that is well under market, don’t delay!

Deadlines Loom for Home Buyers Who Want the Tax Credit

If you are thinking of taking advantage of the tax credits that are now available to first time home buyers (“first time” home buyers are buyers who’ve not owned a primary residence in the last 3 years), you’ll need to start watching the clock.

FEDERAL DEADLINE

To be eligible for the Federal Tax Credit of up to $8,000 (10% of the sales price up to $8,000), you must close on the property no later than December 1, 2009.

STATE DEADLINE

To be eligible for the State Tax Credit of $1,800 (given in $600 increments), you must close on the property no later than November 30, 2009.

NEW LOAN TIMEFRAMES

Facing new process guidelines, many lenders are now requesting 45 days to close a loan, especially if the loan is a government (think FHA, VA or USDA) loan. That would mean that you need to be UNDER CONTRACT to purchase your home no later than October 17, 2009. If you’re doing a conventional loan where a 30-day close is still available, your “under contract deadline” would be November 2, 2009.

Important things to bear in mind:

• Loan volume is at a staggering high and is anticipated to stay high as people are posturing to purchase in time to take advantage of the tax credit. Don’t wait until the last minute and expect your lender to perform miracles to meet the deadline!

• If you’re buying a foreclosure, the closing process will take about 7—10 days longer on average, since additional time has to be built in on the front end for the offer to be negotiated and accepted, and on the back end to accommodate the closing process.

• Remember, you still have to FIND the property and have your agent negotiate an offer. This can take anywhere from a day or two to a month or two. I’ve worked with buyers for as much as two YEARS before they found the right property.

So, make sure that if you are thinking of buying a house and are expecting the tax credit(s) to be a part of your purchase strategy, October 17th and November 2nd are important deadlines for you to remember if you’re getting a loan!

Note: Please see the menu tab labeld "$8,000 Tax Credit" for more details on eligibility for the federal and state tax credit incentives.

I wanted to share this important reminder on taking title as "Joint Tenants" from Jim Donaghue of Donaghue and Chandler Attorneys.  Pay attention:  Jim is offering a unique opportunity for Georgia property owners at the end of the article. 

I have recently been reminded how important it is for couples to hold title as joint tenants: a young couple with a small child bought a house, and the Warranty Deed did not vest title as joint tenants. The husband had an accident, leaving the wife with a small child. Because the Warranty Deed did not vest title in the couple as Joint Tenants, the wife found herself in a bind. She had to spend over $1000.00 plus costs to administer the husband's estate, and found herself owning the house jointly with her 3 year old child. She continues to find herself in a bind, since she had to get a court order to allow herself to either refinance or sell the property (since the child isn't legally competent to execute any title documents) at an additional legal expense, and additional time requirement. This situation will not be resolved until the child turns 18 (at which time the child could legally claim half the house!)

Another recent closing involved an older couple who bought a few years ago, and again title was held as tenants in common... In this case, the survivor paid over $2600 to probate the will to allow him to sell the property.

Please don't let this happen to any of your clients... this is too easy to remedy, and too expensive to leave to chance!

UNLESS one of the following statements is true, a married couple should hold title as joint tenants without exception:

A) A prenuptual agreement specifies property ownership rights
B) An in-depth, highly organized, estate plan calls for a different form of ownership (PLEASE NOTE: a Will, by itself, does NOT satisfy this requirement)
C) Both members of the couple have additional heirs that they want to share in the ownership of the property, and therefore decide (after due consideration) to take title as Tenants in Common... If this is the case, the couple should have wills drafted that reflect their intent.

If you are unsure how you hold title, take a look at the Warranty Deed you should have received in the mail following your purchase closing. If the vesting language (the Grantor language) does not specifically mention taking title as Joint Tenants, I highly recommend you take immediate action to protect your spouse from additional, unnecessary problems.

Additionally, if you have refinanced since you bought the house, and the loan was only in one spouse's name, title may be only in that spouses name. If you are unsure, please give us a call and we'll be happy to assist.

For properties located in Georgia, Donaghue & Chandler, LLC, will prepare and record a quit-claim deed vesting title in you as Joint Tenants, should you not be currently, for $50.00. Taking this step will save your surviving spouse a great deal of additional heartache in the event of an accident or illness.

CONTACT DONAGHUE AND CHANDLER at 678-902-4000 or visit them online at www.dandc-law.com

If you are thinking of taking advantage of the tax credits that are now available to first time home buyers (“first time” home buyers are buyers who’ve not owned a primary residence in the last 3 years), you’ll need to start watching the clock.

---

FEDERAL DEADLINE

To be eligible for the Federal Tax Credit of up to $8,000 (10% of the sales price up to $8,000), you must close on the property no later than December 1, 2009.

STATE DEADLINE

To be eligible for the State Tax Credit of $1,800 (given in $600 increments), you must close on the property no later than November 30, 2009.

NEW LOAN TIMEFRAMES

Facing new process guidelines, many lenders are now requesting 45 days to close a loan, especially if the loan is a government (think FHA, VA or USDA) loan. That would mean that you need to be UNDER CONTRACT to purchase your home no later than October 17, 2009. If you’re doing a conventional loan where a 30-day close is still available, your “under contract deadline” would be November 2, 2009.

Important things to bear in mind:

• Loan volume is at a staggering high and is anticipated to stay high as people are posturing to purchase in time to take advantage of the tax credit. Don’t wait until the last minute and expect your lender to perform miracles to meet the deadline!

• If you’re buying a foreclosure, the closing process will take about 7—10 days longer on average, since additional time has to be built in on the front end for the offer to be negoaited and accepted, and on the back end to accommodate the closing process.

• Remember, you still have to FIND the property and have your agent negotiate an offer. This can take anywhere from a day or two to a month or two. I’ve worked with buyers for as much as two YEARS before they found the right property.

So, make sure that if you are thinking of buying a house and are expecting the tax credit(s) to be a part of your purchase strategy, October 17th and November 2nd are important deadlines for you to remember if you’re getting a loan!

Note:  Please see the menu tab labeld "$8,000 Tax Credit" for more details on eligibility for the federal and state tax credit incentives.