Tag Archives: property

“The Art of the Highrise”

18 Monday Mar 2013

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THE GALLERY
2795 Peachtree Road

In my visits to Buckhead highrises, I am charmed by the way Buckhead buildings work to distinguish themselves from one another. We have so many highrises, but most of them are very different from one another in ways that are carefully planned by the architects, designers, and marketers for each property.

This week we take a look at The Gallery – which rises above Garden Hills on Peachtree right across from St. Phillips church and near Fellini’s Pizza. It’s a newer tower wedged in front of the older building known as The Carlyle. The Gallery was built in 2007, right before the severe market downturn – the building has done quite well given that unfortunate timing!

The motivation for the name was originally that the condo building would host many original and unique works of art. Now the art is primarily confined to the lobby, clubroom and foyer areas (and of course the art gallery, also in the lobby), but with its soaring lines, glass exterior and triangulated balconies, the building itself is a work of art, designed by favored Atlanta architects Smallwood Reynolds Stewart and Associates and William T. Baker.

There are 200 homes here on 27 floors, nine homes to most floors. Most of those homes are two bedroom homes, although there are one and three bedroom floorplans as well. The top two floors are penthouse units – four per floor, and floors 24 and 25 are larger units with eight per floor.

The HOA dues are about 32 cents a square foot and include internet access. The fourth floor has the pool, fitness room, clubhouse, tennis court and movie room – and there are two community outdoor living rooms, both with fireplaces. There’s a dog walk area, but no wine cellar (which seems to be the amenity “du jour” these days, but I suppose the Gallery could always add a wine cellar if there’s a market for it).

There are quite a few Buckhead downsizers here and it is generally a social bunch, with happy hours at the club room the first Friday of every month.

In the past year and a half, two bedroom, two and half bath units have sold from $350,000 to $540,000. There are currently seven units on the market from a one bedroom, two bath listed at $365,000 to a three bedroom, three bath unit listed at $795,000. Call me if you have any interest in exploring The Gallery!

Mary Anne Walser
Keller Williams Realty of Buckhead
#1 Individual Agent in 2012!
maryannesellshomes@gmail.com
404-277-2537

NEIGHBORHOOD REAL ESTATE REPORTS

04 Monday Mar 2013

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What’s going on with real estate in YOUR neighborhood?

I recently did a market report for the Mount Paran/Northside neighborhood – set forth below. I’m happy to do one for YOUR neighborhood or for your specific home if you’re interested. Just contact me at mwalser@kw.com.

The Atlanta real estate market in general is busting wide open.  Finally!  We are seeing properties which are well priced and in good condition move within days with multiple offers.  We have a lack of inventory, and lots of buyers.  We believe that the market will continue to improve.

But what does it look like specifically for OUR neighborhood, Mount Paran Northside?  Generally, our inventory is low, homes are moving faster (but primarily only if they are well priced and show well) and prices are rising.

I took the precise boundaries of the association for my search, and here is a snapshot of our current real estate picture:

Right now there are 41 properties actively listed on the market in Mt Paran-Northside ranging in price from $579,000 to $7,995,000.  There are twelve homes that are under contract.  The list prices for those homes ranged from $499,999 to $2,395,000.  Since the first of this year, three homes have sold – at $845,000 (on market for 95 days, sold for 99% of original list price), $1,650,000 (173 days on market, sold for 94% of original list price) and $2,060,000 (on market for 120 days, sold for 84% of original list price).

So, how does this compare to last year?  In all of last year, from 1/1/2012 through the end of December, 49 properties were sold, for an average of about four properties per month.  With fifteen homes either sold or under contract after the first two months of 2013, we are off to a good start!

Now let’s take a look at trends in MPNS since 2007.  It seems that we reached the bottom of our sales price slump in 2010 – things looked up in 2011 and hit lows again in 2012 – but we are clearly on an upward trend.  These graphs are a summary of ALL properties sold within our community boundaries from 2007 – present day.

How do you know when the PRICE IS RIGHT?

06 Wednesday Feb 2013

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House Price2

What’s the “right price” when you’re selling your home?  The longer your home sits on the market the less you’ll ultimately get for it, so you want to sell fast at top dollar; everyone does (and should).  How can we do that?  What’s the ultimate list price to accomplish your objective?  It’s a little trickier in the current environment, where we are low on housing inventory and it’s turning into a seller’s market.  It’s tempting to overprice.  But the key is to determine what price will draw those eager buyers and still get you top dollar for your home.  That’s where we step in.

First, remember that the list price should not be based on what you paid for the property, what you need to pay off the mortgage or what the price to rebuild the home would be today. What truly sets the right price is what a willing buyer is willing to pay RIGHT NOW and quickly, afraid that if they don’t buy it right away someone else will.  So the right list price takes into account a number of factors, including what other homes are out there that you’ll be competing with, and what’s sold recently in your neighborhood.

We do a comparable market analysis (CMA) for your property to help find this value. The CMA will compare your property to similar properties in your area that have sold in the past 6 months. This analysis takes in to consideration size, condition and improvements. Then we take a look at what is currently out there – the homes you are competing against.  Are you the best at the price you are asking?  That is what we are striving for.  You can see from the chart below that CONDITION is as much a factor as pricing.  You want to be the home that’s in the best condition at the lowest price – and that’s how you get “chosen” by a buyer.

Chart 1 - In market

In order to steal buyers’ attention from all the other listings you have to be better than the rest at the price you’ve chosen.  Listing your property as little as 10% above your determined market value will mean that that you will lose many potential buyers (according to the chart below, seventy percent!) who won’t even see your home because it’s overpriced.

Chart 2 - Triangle

The third and last step to price your property “right” is to take FULL advantage of the first 30 days that your property is on the market. Do not fall into the trap of “trying out” an above market price for a few days just to “see if it sells”. Many sellers make this mistake and end up selling below market value. Your listing attracts the most buyers when it first hits the market. All buyers are on the lookout for “Just Listed” properties every day. If your property is listed above market value from the start, it will be missed by all those potential buyers. After even the second week of listing, property showings begin to drop.  So if you don’t have ANY showings the first two weeks, you are clearly overpriced and should drop immediately – it is already almost too late!

Chart 3 - bar graph

If you are ready to sell fast and get a great deal on your property call me today.  I will provide you with a thorough CMA specialized for your unique property so we can determine the “right” price and sell fast.

WHAT HAPPENS AT CLOSING?

29 Tuesday Jan 2013

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Closing Table

You have found your dream house. Made an offer, came to terms, got through inspection.  Finalized the loan and have prepared to move. Once all that is done, there’s nothing left but the final – and crucial – hour. The closing.

So what happens at this mysterious event we call “THE CLOSING”?  Many buyers are intimidated by the closing, particularly since it takes place in a lawyer’s office and involves signing page after page of legal documents. Enough to give anyone a headache.

But really, truly, you as a buyer should take a deep breath, relax, and ENJOY the closing.  Enjoy the free soft drinks and chocolate provided by the closing attorney.  Quiz the sellers about the neighbors and nearby stores and what they will miss most about the house. Laugh with your Realtor about the homes you saw that were awful (“remember that bright orange kitchen in that one house?”). Shake hands with your lender.

You can RELAX, because at this point if your Realtor and lender have done their jobs, the hard work is all done.

The closing attorney works for the lender. As a practical matter, the lender’s interests are aligned with yours, as the buyer. The closing attorney, weeks prior to the closing, ordered a TITLE SEARCH. A title search is a canvassing of the relevant county records to make sure that the seller owns the property and that there are no “liens” or claims against the property. If there are any liens, the closing attorney’s job is to clear those liens so that you are getting title to property clear and free of anyone else’s claims against it.

You don’t have to worry about any of this – because as the representative of the lender, the closing attorney has already cleared title. Pursuant to the Georgia contract, the Seller must convey clear title.  So if you’re sitting at the closing attorney’s table, title is clear. (If it’s not, the closing attorney will let all parties know and the deal will not close as scheduled until title IS clear; but typically if there is a problem you will know well in advance of the scheduled closing).

The closing attorney will first present all parties with a CLOSING STATEMENT – also known as a HUD Settlement Statement, or simply “HUD STATEMENT”.  HUD stands for Housing and Urban Development – the federal agency which mandates the form.  This and the note are the two most important documents in the closing – most if not all of the other forms are simply form documents that everyone must sign and which are the same in every closing. The HUD statement and the note are unique to you.

This is where your Realtor comes in – the Realtor represents YOU in the closing.  It’s our job to make sure the closing statement accurately reflects the financial deal between the parties.  It is a smart thing to provide your Realtor, also, with the Good Faith Estimate previously provided to you by your Lender.  The closing statement should reflect the charges in the GFE very closely (the margin of variance allowed is prescribed by law, and the closing attorney will go through with you any variance between the estimate and the actual statement).

We will check the other key document – the Note – to be sure it accurately reflects the amount of the loan, the term, the interest rate, and other terms of the loan.

There are many other pages of documents for you to sign – the Security Deed, the Truth in Lending Statement, a copy of your loan application. Most, again, are form documents – but the Truth in Lending Statement (or TIL) is worth some extra explanation here.

The TIL shows what you will pay in total over the life of the loan – adding principal and interest over the thirty years of a loan (or fifteen, if you have a fifteen year loan). It also shows a percentage – but this is very confusing.  It is NOT your interest rate. Throws buyers off all the time. It actually is your interest rate PLUS your closing costs, even if all or part of the closing costs are being paid by the Seller. Meant to be a helpful document, it’s really not. The most important thing for you to know about the TIL is that it’s not important – it’s simply for your information but must be signed. The Note and the HUD Statement govern – and they show your costs and your interest rate in a more easily understood manner.

Once you’ve signed all those documents, handed over the money you’re to bring to closing (which must be either wired or brought as certified funds), checks are cut, keys are handed over, and you own a new home!  It may seem a little anti-climatic at the time. But there’s always a big sense of relief and joy. Congratulations on your new home!

Frankly, My Dear… Antebellum is Making a Comeback

23 Wednesday Jan 2013

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510 Londonberry FRONT

Atlanta will forever be associated with Margaret Mitchell and the famous novel Gone With The Wind – her tale of the Civil War South and the genteel characters who endured the war and its aftermath. Tara, Scarlett O’Hara’s fictional  home, never existed, and most real homes like it that did exist are themselves “gone with the wind”.  The quintessential architectural style of the period, and of Tara, is the Antebellum home – Antebellum means “before war” in Latin, and the term now applies to the style of certain homes built in the period prior to the Civil War which remain distinctly southern. The style is also known as Greek Revival or Classical Revival.  Not many remain in Atlanta and environs – there’s Bulloch and Barrington Halls in Roswell, but not many other examples.

But the Southern elegance and charm of the period do live on in select homes here.  Take, for example, this gorgeous Southern home on Londonberry Road, in the ritziest part of Atlanta. Scarlett would have died to live here. First, befitting a southern estate, it has a commanding presence from the street and a grand entrance featuring stairs up to a rocking chair front porch. Like many Antebellum homes, it features large Corinthian columns and a symmetrical façade.

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The home was designed by Mitch Ginn, an architect from Newnan, Georgia, for the original owner who specifically requested this style of home. Mr. Ginn and his firm have designed many homes in different styles – but some of their most memorable have been antebellum like this one. According to Mr. Ginn, “We design 150 to 200 homes a year, but the Greek Revival and Classical Revival styles are unfortunately few and far between. Popular styles today with future homeowners include Craftsman, Bungalow, and homes with English or French cottage influences. I guess I could say I look forward to a Greek Revival “revival”. “

Like many architects, Ginn enjoys recreating classic styles from the past: “I have always loved the timeless beauty and grandeur of the classical architectural styles. They are dictated by historic architectural structure and proportions. I am also a romantic sucker for the “image” of the Old South.”

The home Ginn designed on Londonberry parlays that image into the modern day. The lot was perfect for a sweeping driveway – and it made the most sense, given the lot, to place the swimming pool to the front and side of the home.  That showcases it as part of the “estate,  and allows a wonderful view of the pool area from the front porch. A meandering creek also wanders far below the home and to the back of the property, adding to the interest of the landscape.

DSC_3576510 Londonberry - outside

The interior of the home on Londonberry continues the grand southern feel with a sweeping stairwell (can’t you just imagine Scarlett making her grand entrance) and two story foyer. There’s also a screened porch overlooking the back grounds – the perfect place for some iced tea or a mint julep, don’t you think?

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And of course, the style makes way in some respects for the demands of the modern day homeowner – for instance, the kitchen is open to the breakfast and family areas, a must-have for many modern buyers. In addition, there’s a master suite on the main floor with a large master bath. The doors to the master bath and the lighting fixtures are all of grand southern design.

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510 Londonberry - KitchenDSC_3442_3_4_5

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As a new generation of homebuyers grows into their “dream” homes, the grandeur of the Antebellum style has a new appeal. It does come with a price tag – the home on Londonberry is currently listed for sale for $1,785,000.

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SURVEYS – WHAT YOU SEE MAY NOT BE WHAT YOU GET

17 Wednesday Oct 2012

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(Image: Residential Lot- 908 Peachtree Battle Circle, Atlanta, GA 30327 – Listed at $125,000)

What’s your line? When a buyer goes to look at a home, sometimes it seems very obvious where the property lines (boundaries) are. But what you see may not be what you get. Property boundaries don’t always coincide with fences nor are they always where you think that they are. In fact, we’ve seen cases where even a large pool was half on a neighbor’s property; no one was aware until a survey was performed.

When we make an offer on a property, we usually ask the Seller for a survey. If the Seller does not have a survey, the usual course to order a survey at closing – but this is not the prudent course. The best thing to do is order a survey long before, so if there are any issues they can be resolved prior to closing or so that the Buyer can terminate if the issues are of great concern and not fixable.

Typically you will want to have an inspection *first* and then if there are no big issues with the inspection, order the survey. Since we often have only a 7 to 10 day inspection period, that may not be long enough for both to conclude.  So insert a stipulation in the contract that says something to this effect: “Seller must provide a survey, if Seller has ever had one done, within 48 hours of binding agreement date. Buyer has the right to order his/her own survey, whether or not Seller provides one. If Buyer’s survey reveals any title, permitting, easement, or encroachment issues Buyer shall provide said survey to Seller within 3 days of receipt and Seller shall have a 5 day opportunity to cure any deficiency. If Seller cannot cure, Buyer shall have the option of terminating this Agreement at no penalty to Buyer.”

Why the mention of “permitting” issues above?  Well, if a structure or improvement encroaches on a neighbor’s property, it likely means that the structure or improvement was not permitted with applicable governmental authorities, which is another, potentially even bigger issue.  While encroachment issues have a two year statute of limitations, permitting issues do not.  This comes up most often with garages and other structures on the edges of the property.

As with everything you purchase, be sure you know what you are buying!  One important aspect of this is knowing the boundaries of your property through a survey.  And as always, call the Mary Anne Walser team when you or someone you know wants to buy or sell a home!

DO YOU WANT CONTRACTORS OR CASH? – A look at money in lieu of repairs

03 Friday Aug 2012

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During the due diligence period, the buyer does an inspection and asks for repairs.  The seller may prefer to give money, and not want to actually do the repairs because (1) they fear that the buyer will not be happy with the repairs and will ask the seller to redo them; (2) they may not have sufficient time to schedule repairs, pack, and move; (3) they simply do not want to have to take the time and effort to have them done.

The buyer may also prefer that the seller give money in lieu of repairs because (1) the buyer can oversee the repairs and be sure that they are to the buyer’s liking; (2) the buyer may want to do other modifications related to the trade at the same time and the money can simply go towards the larger bill; (3) the buyer may find it worthwhile to postpone the repair and use the money now.

In the instance where both sides agree to money in lieu of repairs, the buyer has several choices: he/she can reduce the purchase price by the agreed-upon amount, or have that amount added to seller-paid closing costs. Previously, we could have checks written at closing to third party vendors for the repairs to be performed later, but with the tightened mortgage restrictions that is generally not possible.  Which is preferable – reducing the sales price or increasing the closing costs?  Here are the pros and cons:

  • Either way, the buyer brings less cash to closing.
  • The lender typically will limit the amount of closing costs the seller can pay on behalf of the buyer.  For most loans, it’s three percent of the purchase price.  So just be sure that if you’re increasing the closing costs paid by the seller, you’re not running afoul of this limit.
  • If you decrease the purchase price, the purchase price is reflected in the tax records and future buyers will see that you paid less for the place. The plus side is that the tax commissioner also looks at the purchase price in determining taxable value, so a lower purchase price may result in a lower      property tax burden.

Either way, be sure your lender knows of the change in the contract.  Any changes – particularly those that change the purchase price of the property – must go through underwriting and you want to be sure there is plenty of time before closing to take that step.

Buying a Short Sale can be a Tall Order

09 Friday Mar 2012

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A short sale is usually anything but short.  Sort of like the attorney’s “legal brief” which is never brief, a short sale is very rarely “short”.  The term refers to the situation when the seller OWES more on the property than the property is worth, and is attempting to persuade the lender to take less than is owed on the property in full satisfaction of the loan.  You have probably heard the term “underwater” – a short sale seller is underwater on the house (has borrowed more against it than is supported by its current market value) and is trying to sell the home without having to cough up the difference at closing. 

A short sale can take MONTHS and MONTHS (although I HAVE had one approved in two weeks – that is very unusual).  The lender generally doesn’t WANT to take less than is owed, as you might imagine.  Therefore it’s somewhat of a fight, and if/when there are multiple lenders and lienholders (as there often are) it is often next to impossible to get them all to agree.  We agents sometimes say that it’s the THIRD short sale buyer who actually gets the house, meaning that most buyers who make an offer on a short sale get tired of waiting for the approval and just go on and buy something else.  Of course, the short sale may or may not EVER happen.  The seller may just stay and pay – or it may end up as a foreclosure.

Even when the short sale lender or lenders approve the short sale, they will sometimes reserve the right to disapprove the short sale at any time before closing – which poses another problem; it could fall through at the last minute.  In fact, you can be sitting at the closing table when the word comes that the lender has decided to withdraw approval and foreclose instead.

Other potential snafus are that the seller usually wants a release from any and all liability with respect to the loan, while the short sale lender(s) will often require that the seller sign a personal note back to the lender for the remainder owed.  Another problem I have seen is when the seller does not realize that they may be TAXED on the forgiveness of debt (why the seller’s agent did not bring up this issue to the seller prior to getting a contract is beyond me, but it happens).  The IRS considers forgiveness of debt taxable income, and the seller will be responsible for paying that tax.  A side note – if you are the seller, please consult your accountant on this one – because if it is your personal residence you are selling, the forgiveness may be excludable, much as GAIN from the sale is excludable if you have lived in the house as your main residence for two of the past five years.

In other words, short sales are a PAIN, but you CAN get a great deal.  It’s best to look for PREAPPROVED short sales where only one lender is involved.  Pre-approved means the lender has already agreed to accept a short pay-off, and these deals are much more likely to go through.  In any event, I usually counsel buyers to go ahead and make an offer on a short sale if that is the property that they really like, but the to KEEP LOOKING.  You can always terminate your short sale offer if you find something better in the interim. 

We agents are all ready for the day when regular sales again outnumber foreclosures and short sales, but I am also glad to see those sales moving through the system.  The quicker we turn over the troubled properties to buyers who can handle the payments, the faster the housing market will recover.