The Peters Company Blog

You will find Brookhaven nestled between Buckhead and Sandy Springs inside the Atlanta perimeter (ITP, as they say).  Brookhaven is separated east and west by Peachtree Road.  The westside of Brookhaven is well known for historic homes from the 1920's-1940's in the neighborhood that bears the community's name and the classically popular Capital City Club.   The community of Brookhaven was originally built around a golf course, Brookhaven Golf Club, which later became the previously mentioned Capital City Club. In 1986, the area was named a historic district by the the National Parks Service.  The expansive new Sembler Town Brookhaven development on the northwest side of the area will bring even more modern day convenience including commercial, retail, and restaurants.  The eastside of Brookhaven is filled with blossoming neighborhoods such as Ashford Park, Drew Valley, Brookhaven Fields, Brookhaven Gardens, Brookhaven Heights, Fernwood Park, and Hillsdale to name a few.  New developments along Dresden Drive like Village Place at Brookhaven on the eastside have furthered property values and the desirability of the area.  Current restaurants of interest in the area include Hudson Grille, Haven, Verde Taqueria, and Terra Grille. 

There's a lot to like here for all price ranges, but why not take advantage of a deal?  Foreclosures are affecting every market, even the highly desirable community of Brookhaven.  The below link is updated daily for all active Brookhaven shortsale and foreclosure listings in the 30319 zip code so make sure you bookmark this page for easy access and reference. 

Click Here for an Easy One Click Brookhaven (30319) Foreclosure and Short Sale Search.

Andy and Lesley Peters with The Peters Company at Keller Williams Realty Peachtree Road are well versed in Atlanta Brookhaven real estate.  In fact, we live in Brookhaven ourselves!  We represent both buyers and sellers, and we are intimately familiar with the Brookhaven short sale and foreclosure market. For more information about The Peters Company, visit our website at www.thepeterscompany.com. You'll also find us on Kudzu.com under "The Peters Company" where we have received well over 40 5-star reviews and are ranked as one of Atlanta's highest rated real estate teams. Give us a call today at 770-634-2782. We look forward to working with you and helping you take advantage of today's market!

The Peters Company just listed this beautifully renovated 3bed/2bath classic in historic Decatur. It's located in the Great Lakes neighborhood which is in the Clairemont Historic District, and the home is incredibly convenient to Emory Hospital, DeKalb Medical Hospital, and CDC.  This charmer has been renovated and updated front to back, side to side, and a recent addition makes for an expanded kitchen and an oversized master suite.  The home sits back tucked away from the road, and the lot is large and deep with a deck overlooking the private fenced in yard.  You must see this home. You're going to love it, and it won't last long!  To see this listing, please contact Andy at 770.634.2782 or andy@thepeterscompany.com for an easy appointment.

Considering what's going on in the real estate market, you have a tremendous opportunity.  This opportunity requires you to make a decision though!  You have to decide if you are going to be a pioneer or a settler.  No, you're not playing a game of Oregon Trail so calm down you children of the 80's.  So what's the difference and what are you?

pi⋅o⋅neer   [pahy-uh-neer] - one who is first or among the earliest in any field of inquiry, enterprise, or progress: pioneers in cancer research.

set⋅tler  [set-ler, -l-er] - one who establishes himself in a new region.

A pioneer in this real estate market is quite honestly a smart buyer, keeping in mind that the money to be made in real estate is not in the up time.  It's all about buying low and selling high in those up times.  If you're one of the few who is buying a primary residence with no other strings attached (such as, not owning another home somewhere else and/or having the good fortune of selling your previous home), words can't describe the opportunity before you.  You can be a pioneer by simply buying smart.  Many homebuyers are sitting on the sidelines waiting to see just how low things can go.  I believe at the end of the day those folks will be very sorry considering inventories are high (although falling and showing promise of a turnaround) and rates are in the low 5% range (and sure to rise). 

If you already have a home which you are bound to for various reasons or maybe you have no desire to move, you can be a pioneer too.  Investment property, which I have talked about previously, is a golden opportunity for you to actually experience a return on investment RIGHT NOW.  Have you looked at your 401(k) or securities accounts lately?  Returns?  What's that?  Learn the value of cash flow, buy an investment property, build equity, and sleep well at night Mr. Pioneer.

The alternative is to be a settler, the person that follows the market and the crowd.  When it's just about to crest, you are buying and following those clever pioneers.  The bad news is that crest soon turns into a valley, and there goes your profit, your equity, or even worse your property.  Sure, you can make money as a settler, but literally every day you wait costs you money. 

As your real estate consultants, our job is to advise you and keep your home search or home sale "between the ditches," as my grandfather used to say, teaching me to drive his old truck on dirt roads in south Georgia.  Simply put, we win when you win, and that includes finding values, negotiating values, and facilitating a smooth transaction.  The moral of the story is, as in all of life, you have a decision to make.  If you can afford to do so, be a pioneer.  Your long term wealth will thank you for it later.

As always, we'd love to be your home base for all your pioneering needs.  For more info, visit www.thepeterscompany.com.

Lesley and I are fortunate to go on at least two listing appointments every week.  So, we must get a lot of listings, right?  Well, we certainly are successful securing listings, but we don't want every listing.  You see, many desperate real estate agents take listings regardless of the situation because they know in their heart of hearts that even if the listing can't and won't be sold that they can use the listing to promote themself.  It's a terrible reality, but it is just that, a reality.  When we all agree to agree to take a listing, Lesley and I take it because we genuinely believe we can sell it.  We aren't desperate.  We aren't in the business of listing homes.  We are in the business of selling homes.  If we can't sell your home, it bothers us.  We don't sleep well at night.  You aren't happy.  You don't use us again.  You don't refer us to your friends and family.  We are sad, and eventually we become desperate.

So, what would cause us to not take a listing?

1 - Price - it's hard to sell a home when it's priced so high that it doesn't attract buyers.  We are very realistic on price, and we play to the percentages, not to the possibilities.  This has helped us achieve an average days on market much lower (30.4 days) than the average Atlanta real estate agent.  We tell everyone that we meet with for a listing presentation that there will definitely be another agent that will come along and price their home higher than we would.  That will always be the case.  We completely understand when someone feels like they must "try" to sell their home at a higher price with another agent.  Unfortunately, the market stats suggest we have far more "tryers" as opposed to sellers considering 67% of listings fail due to being overpriced (ChartMaster 3rd Qtr Market Stats). 

2 - Condition - in this buyers' market, you have to be competitively priced and you have to be the "prettiest."  If a buyer sees a defect in your home, they don't discount in hundreds of dollars.  They discount in thousands of dollars.  It's hard to build value to a buyer when there are glaring defects that a seller is not willing to repair.  With high inventory, it is easy for a buyer to simply move on to the next listing without batting an eye.  It's very unlikely that we will walk into the absolute perfect home that needs nothing done in order to get it ready for the market.  Part of our listing consultation includes a walk through of a home to make some clear cut recommendations on what exactly needs to be done in order to maximize your opportunity to sell in the least amount of time for the most amount of money.

3 - Financial - sometimes it is just not in the best interest of the seller to sell.  If someone is severely upside down on their home, we don't want to take that listing unless the seller absolutely has to sell.  If they have to sell and it isn't pretty, we coach people to explore short sell options with their lender to avoid foreclosure.  We tell more people not to sell than we do ask for their listing, and that's the honest to goodness truth.  The rental market is booming right now as more and more people realize that renting their property gives them an opportunity to fulfill their obligation to their lender and hold on for a better day.  We want that better day for everyone if it's in their best interest.

We know that selling a home can be a very stressful experience or a very enjoyable experience.  We are the difference maker.  We are not desperate.  We do not do desperate things.  We follow a time tested model that allows us to sleep at night.  We study real market statistics that give us important clues and direction when listing and buying property.  Continue to think like a buyer, and if you are looking for an agent that will give you the straight talk on selling in this market, look no further.

Lesley and I both are  proud members of the Atlanta Board of REALTORS®  I had the pleasure of attending a recent Atlanta Board event.  One of the topics was "What is a REALTOR®?"  Before I became a real estate agent, I just assumed that everyone was considered a REALTOR® if they were in the business.  I would also sometimes refer to these people as Real-a-tors.  It wasn't until I became a REALTOR® that I really realized what this designation means to me and to the people who utilize my services.  I quickly learned that real-tor is the correct pronunciation, that it is spelled in all caps, always had that circled "R" symbol, and that actually being a REALTOR® was different than being just a real estate agent. 

All real estate brokerage houses don't require the membership of its agents in a Board of REALTORS®.  Our Keller Williams offices require it with no questions asked.  Now, why would they be so insistant on its affiliates joining? 

1 - Code of Ethics - the REALTOR® Code of Ethics is at the forefront of the REALTOR® designation, and it provides an important difference to consumers.  All real estate agents are required to understand and operate under state mandated licensing laws, but only REALTORS® are held to a higher standard.

2 - Accountability - The Atlanta Board of REALTORS® mitigates disagreements and conflict between its members.  A violation of the code of ethics and a member finds themselves facing harsh consequences such as fines, suspension of Board membership, suspension of MLS access, etc.  This sort of accountability amongst the members creates a self policing that makes all of its members better.

3 - Community - the Board has a long-standing history of supporting the local community. In the past several years, the Atlanta Board of REALTORS® has sponsored building several Habitat for Humanity homes through the Atlanta Chapter.

4 - Awareness - membership in the Atlanta Board of REALTORS® places an agent in one of the most powerful and influential grassroots lobbying efforts in the country related to real estate issues affecting the industry.

5 - Networking and Exposure - by being a member, your listings appear on one of the heaviest searched site for homebuyers in the nation, www.realtor.com.  In addition, through various networking and educational opportunities members are able to promote their business and listings to their colleagues in a professional manner.

These are the top 5 benefits of being a REALTOR® as I see it, and why every agent should seek this designation.  It kind of makes you wonder about those who aren't members, doesn't it?  The more pressing question is always, "What's in it for ME?"  I understand that everything I do and say should probably be followed with a "So what?" 

Here's what's in it for you and why you should use a REALTOR®:

Educated students of real estate law who understand the law and work to ensure you have the safest transaction possible.

Ethical leaders who understand and are willing to do the right thing even though it may mean more work on their part.

Community minded people who understand that a home is more than a place to live.

Politically active advocates for the real estate industry, helping to protect all of our investments.

Well connected professionals always searching to expose you to more than the average agent.

Lesley and I would love to show you the benefits of having a REALTOR® on your side first hand.  We want to be the difference maker in your real estate transaction.

Simple Math:

Amazingly Low Rates + Depressed Home Values + Vast Inventory = First Time Homebuyer Heaven

If you are a first time homebuyer in Metro Atlanta sitting on the sidelines, your amazing opportunity window may be shortening as the home market is poised to rebound.  For months we have been proclaiming the dubious position that first time homebuyers are finding themselves in.  We have been fortunate to work with more than a handful of first time homebuyers this year, and I'm always blown away at what is out there waiting for them. 

Great Mortgage Interest Rates!  I heard my dad and my father-in-law for the last few years tell me about how high rates were "back in the day" of the 1970's and 1980's.  10-12% interest rates were not only common, they were pretty darn good.  We have really been spoiled here recently.  In fact, rates dipped below 6% again this morning, and they appear to be going lower according to our friends at Countrywide Home Loans.  If you are floating in the short term, waiting for interest rates to drop further, I encourage you to lock those rates.  With the volatility we are seeing in all the financial markets, anything could happen.  You may lose a little on your rate by locking, but you could also look like a hero on these sudden spikes we've seen in the last couple of weeks.  Adjustable rate mortgages may be tempting, but with rates this low and if you can afford to do so, lock your rate for 30 years and forget about it.  You'll be glad you did.

Home Values are Down!   The Median YTD September 2008 sales price was down 10.3% versus the same period in 2007.  Foreclosures represented over 23% of the overall sales in the 3rd Quarter.  As mentioned before, you can't always consider a foreclosure a good "deal", but you sure have to look at them in this market.  It's an equity cash grab if you find the right one.  Sellers received 93% of their list price in the 3rd Quarter, which is 3.5% worse than the same time last year.  The sellers are finally starting to accept the market, which is even further good news for the homebuyer. 

Inventory is Still High!  There is a 12.3 month home supply in the market right now, which is 20% higher than the same time last year.  However, it's important to note that the home supply has dropped each of the last two months as this market attempts to correct itself.  A 6 month supply of homes is a good balanced market to give you a point of reference.

Other great benefits in this market for first time homebuyers include the fact that 75% of all home sales included seller paid closing costs!  FHA loans are available with 3% down, which can be in the form of a gift.  The other good news is that we are entering the winter months when home sales typically slow down, making an offer even more attractive for a seller. 

If you are considering buying a home for the first time or for the fiftieth time, there truly could be no better time than right now.  We have received high praise from our clients for our consultative approach, making the homebuying process a simple and enjoyable experience.   We would love to help you.

All statistics are cited from Chartmaster, 3rd Quarter 2008 Metro Atlanta Profile: Single Family Detached Residences.  See www.thepeterscompany.com/blog for more posts.

When a home goes on the market that is overpriced, the market rejects it and it fails.  A failed listing can come as a withdrawal from the market or an expired listing.  Either one is not good if your goal is to sell your house.  Most of the time a "re-list" is accompanied by a price reduction, more time on the market, and further frustration. 

Here are the ChartMaster statistics showing failed listings in Metro Atlanta over the last three years:

3rd Quarter 2006 - 47.8% of listings failed

3rd Quarter 2007 - 62.5% of listings failed

3rd Quarter 2008 - 66.9% of listings failed

With the trend going up, it's a black eye for our industry.  It shows that more and more people are pricing their homes too high.  Maybe its caused by denial.  Maybe its caused by greed.  Maybe its caused by real estate agents who don't know the statistics.  I think it's a little of all three.  We all need a good dose of reality.  As mentioned before, you can't play to the possibilities in this market.  You have to play the percentages.  Selling homes in this market is not difficult, although it's more difficult than before.  People are still buying homes, but you have to be well priced to attract buyers and you have to be "best dressed." 

Now more than ever you need a realtor to sell homes, and you need that realtor to be realistic and proactive.  The Peters Company has built a reputation for selling homes in the least amount of time (30 day average days on market in 2008) for the most amount of money (96.6% of sales/list price in 2008).  How do we do this?  It takes the right statistics and the right reaction to those statistics along with a dedication to overservicing and overdelivering.  We tell all of our clients when they have chosen to do business with us that it's always "us" against the market.  If we can beat the market, it's a win for our clients and it's a win for us.  Let us show you how we do it.   www.thepeterscompany.com

I was fortunate enough to be in a meeting today with our Operating Partner Shaun Rawls. In the meeting Shaun shared with us the 3rd Quarter Market Statistics for the Metro Atlanta area. I'll be weaving some of those statistics through online blogs here, on the Metro Atlanta Real Estate Update on Facebook, as well as our mail pieces. By the way, if you ever want to be added to our mailing list, simply shoot me an email. We'd love to stay in touch with you, keeping you up to date with the market.

Everyone knows this is a buyer's market, but what if you have to or JUST WANNA sell your house? Lesley and I are going on at least 2 listing appointments per week, but we don't take every listing. We truly believe in being honest with our sellers, and we would much rather turn someone down than let them down by taking an overpriced listing. We know that when property is priced right that it not only sells, but that it sells for more than a property that is priced high taking a price reduction. Now, more than ever, you need a realtor who knows the stats, knows how to professionally market your home, and who is prepared to shoot you straight on your home's value. Now is not the time to "try" the market. It's brutal, and it will make you look pretty silly. Now is not the time to play in the possibilities of what you may get for your home. You have to play the percentages. You have to have real statistics to price with in order to even get a whiff of activity, much less get your home sold. In the 3rd Quarter, nearly 67% of listings failed, meaning they were either withdrawn or expired. 51% of listings needed a price reduction before they sold last quarter, and of the homes that sold nearly 1 in 5 was a foreclosure. Yikes!

Don't choose a real estate agent because they give you a price that's higher than all the rest. Chances are they are setting you up for failure in this market. Choose a real estate agent based upon their plan to sell your home. Keep in mind that until your house sells you're not a seller. You're a tryer. Don't be a tryer. Be a seller. Sell your home, and let us show you how.

You can always check out more on www.thepeterscompany.com/blog.

Liquidity is a term being thrown around a lot right now as banks clamor to secure deposits so they can in turn lend money.  The long and short of it is that there is still a lot of money out there, but a lot of people have pulled money out and are sitting on the sidelines waiting for this mess to settle down.  These giant peaks and valleys we have seen in the market are a perfect example of that "sideline" money jumping into the market and then dumping.  Don't expect that trend to end any time soon.

This liquidity challenge has changed things in the lending industry.  It's a little harder to secure a loan these days, but there are still plenty of loans being made.  Don't panic!  Lenders were destined to become more cautious with their loans, because they were so greedy reckless during the boom of 2003 through the beginning of 2007. Their carelessness has created the newspaper headlines we see today describing delinquencies and foreclosures, made worse by falling home values.  Here's some things you should expect in the wake of the recent financial greed party situation.

You will need more documentation to secure a loan.  This simply means that lenders are doing more than the quick check of credit to preapprove buyers.  Expect lenders to request W-2s, tax returns and bank statements more times than not.

Private Mortgage Insurance standards have tightened.  When a buyer doesn't put down at least 20% down on the purchase of a home, most lenders require private mortgage insurance (PMI), which is to insure the lender upon your default.  By the way, the buyer foots the bill for the monthly premium payments.  Some mortgage insurers are refusing to insure properties that fall into a declining market category as determined by their independent research.  This leaves buyers scrambling to hold deals together.  The fine folks at the FHA have stepped in to help in these cases with the only downside being you'll have to use a lender that has FHA certification.

Fannie and Freddie are passing along fees.  Before the government took over Fannie Mae and Freddie Mac, the two entities started adding fees onto mortgages for consumers or passing along through increased an interest rate.  These are often times referred to as "loan level adjustments."  These fees are being reevaluated currently as they are seen as an obstacle in supporting affordable housing.

Jumbo loans are tough.  Jumbo  loans are issued for mortgages of $417,000 or more, and these jumbo loan rates are higher than rates on conforming loans considering theres' more at stake for the lender.  Many lenders are requiring as much as 12 months' worth of house payments in readily available savings in order to secure their jumbo loans.  With higher jumbo rates, many borrowers are turning to 5/1 adjustable rate mortgages to help bridge the gap. 

On a positive note, rates have been falling here recently on an apparent reaction to the Fed's rate cut on the 8th of October.  Despite challenges on the documentation and qualification side, money is inexpensive to borrow, and my contacts in the industry suggest that the mortgage rates will continue to fall.  Today's 30-year fixed rate was at 5.625, and I almost fell out thinking about it going lower.  If you have good credit, there's absolutely nothing to worry about.  The developments mentioned above shouldn't affect those with good credit much, if at all.  The first time home buyer really will not know much of a difference, but just be prepared if this is not your first home purchase.  A little bit has changed recently.  Nonetheless, it's still an amazing opportunity to buy, and you will be rewarded for your inconveniences with an excellent interest rate. 

Lesley and I work with some wonderful lenders that, like us, simplify things for you.  You can click on "Vendors" under the "Resources" tab on www.thepeterscompany.com to see some of our recommendations.