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Channeling Don Draper – Positioning Your Atlanta Home in the Homebuying Marketplace

08 Wednesday Jun 2016

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If you are a Mad Men fan, then you know Don Draper went in for the product pitch fully prepared. He learned as much as he could about the product he was being interviewed to market, and he researched how to best appeal to the most likely buyers. Don’t forget that your home is also a product. You need to identify the strength of the market, the target buyer, and the best way to approach and appeal to that buyer. Much can be learned by utilizing some simple tools Mad Men style to position your home correctly in the marketplace. So here we go!

Like bringing any other product to the market, first we do a market analysis. We price your home right by looking at the comparables that have sold recently in a close radius – that’s looking at what has already SOLD. We also determine how much inventory is currently in your price range, how long it may take to sell, and what our competition looks like. We must keep in mind, of course, that there are many buyers who will look beyond a “close radius” of your home. For instance, a buyer may be looking in Decatur AND in Dunwoody – in Inman Park AND in Sandy Springs. While a prequalified buyer will know what they can afford, they may NOT have decided exactly where they want to live. But we do not let that overwhelm us. We start with what’s closest, since that is most immediately relevant. And we keep in mind that pricing and marketing homes is as much an ART as it is a SCIENCE.

One of the key indicators we look at is the ABSORPTION RATE in your particular market. Many sellers make the mistake of pricing their home relative to other homes that are CURRENTLY presented for sale. The problem with that is that the other homes currently on the market HAVE NOT SOLD (by definition). So if you price relative to current listings, and those homes aren’t moving, you may be overpricing, even IF you are priced less than the others.

So the absorption rate is one tool that allows us to look back at the homes that HAVE sold and how quickly they have sold. Here is what you need in order to calculate absorption rate:

  1. The market you wish to analyze. This can be one specific neighborhood or a larger area.
  2. The time period you want to analyze (typically we’ll take six months, sometimes longer).
  3. The number of homes SOLD within that time frame.
  4. The number of homes currently under contract or PENDING sale.
  5. The number of homes currently on the market.

So, by way of example, let’s take Chastain Park as of June 2016. First, know that to truly get an accurate absorption rate you sometimes need to do a specific map search. There are several reasons for this. For instance, Chastain Park is a prestigious area so some listings may claim to be in Chastain Park when they really are not. Also, there are neighborhoods within Chastain Park that are named differently – so the neighborhood name might be used in the listing instead of “Chastain Park.” So using a map search will give us the most accurate information.  And using a map search, we find that 134 homes have sold in Chastain Park in the last year. There are 27 homes that are “pending sale” or “under contract.” And there are 99 current active listings.  So what does this tell us?  Here are the calculations:

  • What is the rate of home sales in Chastain Park? We take the number of sold homes and pending homes added together, (134 plus 27 = 161), divided by the number of months in our chosen past time frame (here we will use a year, or 12 months). This calculation results in 13.41 (161 divided by 12), meaning that 13 (and almost a half) homes are sold every month in Chastain Park.
  • We can figure out the absorption rate by taking the active listings and dividing that by the average number of listings which sell per month. Thus, we get active listings = 99, divided by the average home sales per month (13.41), which equals 7.38 months. That means that if no other homes came on the market, it would take 7.38 months to sell the inventory that we have.

A BALANCED absorption rate is generally between 5 and 7 months. By balanced, we mean a market that’s balanced between buyers and sellers; neither holds a particular advantage in a “balanced market.” Less than five months is a seller’s market (meaning better for sellers), more than seven is a buyer’s market. So we’re in a little bit of a buyer’s market in Chastain Park at this particular moment in time. This is an important piece of information which tells us in part that it’s important to price competitively.

Once we have figured out the absorption rate and how quickly homes are moving, we ask: who is the likely buyer for your home? First time homebuyer? Move up executive who is now making a lot more money and ready for a showcase home to entertain clients? A downsizing widow? A couple planning to have children? You get the idea. To figure this out, we look at the types of buyers who have purchased homes like yours in the same general area. While we want to have as broad an appeal as possible (at least as to those homebuyers who can afford homes in your price range), it doesn’t hurt to also have a good idea of who the “most likely” buyer might be, and to develop a plan to target them in our marketing efforts.

Keeping the likely buyer in mind, we stage carefully. Many of our staging rules apply no matter who the audience, but we also tailor our staging to the likely buyer, the style of the house, the neighborhood and the season. The marketing plan extends to photography as well. If our target buyer is one likely to enjoy the outdoors, we play that up in photographs. If our buyer is likely to entertain in the evenings, we may take some of our photographs at night. Nowadays we often also use drone photography to showcase a particularly large lot or extensive home, a pool, or outdoor area.

After years in the business, I have become expert in marketing homes, but I always also get the input of other agents. We invite other agents into your home to get feedback on our planned approach to appeal to buyers. We often make adjustments based on that feedback.  These agent previews provide a sort of “focus group” intelligence that helps us make your home most appealing to the buyers who come through.

Once we are in the marketplace as a live listing, the adjustments never stop until your home is sold. If buyers aren’t seeing the home, we want to know why. If buyers see the home and aren’t making an offer, we also want to know why. It’s important to have continual and honest feedback until your home is sold. As a seller, you must have a tough skin and take all feedback in stride. As your agent, I will gather the feedback and let you know what I believe is valid and what is not. It’s difficult to have strangers “critiquing” your home. But know the critique is really a critique of the marketing of the home, and not of the way you live. Put on your Don Draper hat and think of it as simply more market intelligence. Together we can determine the best marketing plan and get your home sold!

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

 

Hey, Atlanta Homeseller: How to Ace the Home Listing Interview!

03 Friday Jun 2016

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What, you say?  When you sell your home, YOU are interviewing the Realtor, not the other way around.  But we don’t accept every listing that is offered to us.  If you are determined to overprice, and can’t/won’t do the work needed to get your home ready to sell, a great agent may just pass on your listing.  And you WANT a great agent – that’s how you’re going to get the most money for your home.  The key to a successful listing relationship starts at the listing appointment – or even before.  SO – here’s how to ace the home listing interview.

What do you need to know?  FIRST, it is okay to call an agent even if you are only “thinking” about selling.  Making an appointment does not obligate you to list or to sell anytime in the near or far future.  Of course, if you are in a hurry to sell then you will be top priority.  So let us know your urgency when you make the appointment, and it is totally fine to consult with us even months prior to the time you actually plan to list.   Realtors are in the business of connection.  Even if you decide never to list, if you are impressed with us we trust that you will tell your friends about us.  If you are planning to list, but have some time, we can help you get your home positioned to maximize your return when you DO sell.

In fact, it is crucial that you call if you are thinking now about making home improvements in order to sell your home in the future.  Consult us first!  What you think is going to make you a lot of money may NOT be what buyers are looking for.  We agents are in the market every day with buyers in our car.  So we know what impresses buyers – what is worth spending money on and what is not worth spending money on.  We can help you choose your upgrades carefully with the future buyer in mind.  After all, if you are renovating TO sell, that is key.  If you are renovating for yourself and plan to stay, that’s a whole different ballgame.

When you call, we will ask you a series of questions over the phone to gauge your motivation and urgency, and to find out what we can about your home prior to our appointment.  We will pull your tax record and then pull comparable homes that have sold around you over the past 3-6 months.  We will send you our Seller’s Guide prior to meeting with you so you will know what to expect and can ask any questions that arise from it – but don’t feel as if you HAVE to read the Seller’s Guide prior to our appointment.  We are always available to answer questions and I will talk you through the process when we meet.

Our meeting will last between half an hour to an hour and a half, depending upon how large your home is and how many questions we have for one another.   Here is a typical itinerary:

  • I will give you disclosure forms to review while I tour your home. The disclosure forms ask you questions about your house – the age of systems, that sort of thing – and you will likely have questions about how to answer.
  • While you review those forms, I like to tour the home by myself rather than have you take me through the home. Here is the reasoning:
    • I want to view the home objectively, as a home buyer would. The best way to do that is if I simply walk through the home the way I typically walk through a home with a buyer.
    • I will take notes and take pictures. The pictures I take are NOT the ones we will use in listing your home – we use a professional photographer for the listing pictures.  The pictures I take are only for my review in advising you on staging and marketing.
  • After I walk through your home, I will sit with you and talk through the process – our marketing plan and what we do to sell your home.
  • Then we will look at the homes that are comparable to yours that I have pulled from our phone discussion. The ones that are most pertinent are the homes that have SOLD, but we will also review the homes that are pending sales and those that are active listings.
  • Together we will discuss what needs to be done to your house to get it ready to sell, the “right” list price, and the timing of the sale.
  • Most of my sellers sign a listing agreement during the appointment and we list right away (after a weekend for clearing out and staging the home).  Or I can send you the listing agreement and disclosures electronically.
  • After the appointment I will send you a recap email setting forth the repairs and staging notes we discussed during our visit.

While most sellers list right away, many consult me six months before they are really ready, and then of course there are sellers in every time frame in between.  My goal in meeting with you is to develop a relationship with you and determine how to best serve your needs.

There is no preparation required on your part prior to our meeting, however, if you are able and willing to do the following it will help streamline the process:

  • Pull your most recent mortgage statement with balance information. If you have a second mortgage (home equity line of credit) pull that statement also.  The tax records I have pulled show the mortgage amount when you purchased the home, but you have likely paid some of that off.  These statements will help us determine your anticipated net from the sale.
  • Have a survey of your property handy if you have one.
  • Similarly, if you have ever had architectural plans prepared (either for a renovation or addition that was finished, or one that was considered but not done) have those ready for us.
  • Have an extra key ready.
  • Have a list of key features of your home; details of any renovations and upgrades are very helpful.
  • Put together a list of what you love about your home, your neighbors, and your neighborhood. Be as specific and inclusive as possible.
  • Have any neighborhood newsletters, invitations, or flyers ready.
  • If you know of any property boundary disputes or potential liens (by contractors or creditors) let’s discuss at our meeting. We can have a pre-emptive title search done to be sure your title will be clear when we offer your home for sale.

So gather information, but remember to meet with us before you take action on anything.   Let’s get your home ready, price it right – and get ready to SELL!

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

Selling is Showtime

18 Wednesday May 2016

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It’s SHOWTIME, folks!  Grab up the toys, wipe down the counter, turn up the lights, and send in the clowns… oops.  Send in the BUYERS.  Buyers, not clowns (guess they could be clowns, but we don’t know that yet).  And their agents.  (No more clown comments.)

When you have your home on the market, here is how a showing works from curtain up to curtain call.  The audition is the listing appointment in which you engage me as your agent.  The rehearsals are the staging work we do prior to taking pictures.  Unless we have sold your home before putting it on the market, we put those beautiful professional pictures up on the MLS (multiple listing service) and at that point you are ready to welcome the audience.  You want exposure to as large an audience as possible.  In the Atlanta area, that means advertising in both multiple listing services: Georgia MLS and First MLS and syndicating your listing to all websites that provide the public access to listings.

Once in the MLS and across the web, buyers and agents are able to see your home.  When a buyer and/or agent has identified your home as one they want to see in person, they will ask for a showing.  An unrepresented buyer may call me directly to arrange a showing.  The represented buyer will have their agent call me to set up the showing.  Or, depending upon how you, the seller, and I decide to handle showings, the agent may call you directly.  In any event, you will (hopefully) have 24 hours or more notice to have your home show ready.  BUT YOU CANNOT COUNT ON THAT.  Here’s why an agent might tell you between 2 and 3pm but actually show up at 1:30 or 3:30 (or anytime in between).

A buyer’s agent is typically showing their buyer more than just YOUR home on that day.  They may be showing anywhere between four homes and fourteen homes (or maybe more).  It’s difficult to tell in advance if a buyer is going to breeze through some or all of the homes before yours, or if they are going to want to take extra time and sit a spell at a prior listing.  Traffic may be particularly bad.  For any number of reasons, a buyer and agent may not show up at your home at the time that they say that they will.

So when they show up thirty minutes early or thirty minutes late or even are off by an hour, the key is to be friendly and understanding.  How you react greatly effects how the buyer is going to feel about the home.

Recently, I went with my buyers to see a home and when I knocked on the door, it was clear the frazzled Dad had no clue that we were coming.  But he put a big smile on his face and explained (you guessed it) “I had no clue that you were coming, but it’s totally fine!  Give us just a minute and we’ll be out for your showing.”  Dad and the two kids cleaned fast and headed to the driveway to play basketball.  My buyers had a great feeling about the house.  It’s like the home has good “mojo” because nice people live there.

Contrast that with the time I knocked on the door and was regaled by the person answering the door who practically screamed “YOU ARE EARLY.  You *(#() agents are always early!”  I apologized profusely, but then looked at my watch: I had said we would be there between 2 and 3pm and it was 1:59!  My clients didn’t even want to go inside after being yelled at.  Turns out the person answering the door was a home manager (more on that in a future blog post).  The home manager did not keep that position for long (no surprise).

So the moral of the story is to be the first seller, not the home manager.  Be ready and be courteous if the agent shows up early or late.  It’s totally fine if they are outside their time window to politely excuse yourself to sit on the front porch or to take a short walk.  Don’t act exasperated.  Just smile.  How a buyer feels about YOU really does affect the way they feel about the HOUSE.

While it’s okay to leave when an agent gets there if they are off their appointed time, as a seller, you always want to leave for a showing before the buyer and agent get there if at all possible.  Trust me on this.  The buyer needs time to LOOK at your house – experience it – and talk with their agent freely about their feelings, thoughts, and questions.  A seller in the house is distracting whether that seller is trying to engage the buyer or not – either way it’s bad.  A seller who is just hanging out in the home doing their thing makes a buyer feel that they are intruders and should get out quickly (not to mention the buyer feels that they can’t reveal their true feelings about the home or talk about it with their agent).  A seller who tries to give a tour of the home is even more disruptive.  If the buyer is looking at and listening to you, they aren’t experiencing the house.  And believe me, they don’t care about your hand painted kitchen backsplash tiles or the age of the windows if they haven’t even had a chance to decide if they like the house.

So if you have left prior to the showing as I am suggesting is best, how are agents and buyers going to get into your home?  As your listing agent, I will leave you a SUPRA ibox.  It’s a very secure blue box that can be attached to an exterior door or simply left out behind a planter when it is buyer showtime.  Buyer’s agents have SUPRA “keys” (or an app on their phone) that can open the lockbox through an infrared signal.  The lockbox even signals me, the listing agent, who is accessing the lockbox and when.  A great advance from the days when Realtors would have to pick up keys from the office for every listing they wanted to show.  The ibox is a good security measure since it identifies the person opening the box.  Always have the agent use the ibox for entry even IF you are there when they arrive.

When you are getting ready for the showing, here are your ground rules:

  • Leave ALL lights on. Every home looks better with the lights on.  In our staging consult, we’ve made sure that the light is of the right “quality”; make sure that all lightbulbs are operational and all lights on.
  • Leave all window shades open (unless there is a strategic reason for keeping one closed, or half closed – say if a view isn’t ideal).
  • Be cognizant of SMELL. No strange cooking smells, no locker room smells, no pet smells.  If you suspect any of these, the best counter-smells are citrus or pine (cleaning products).  Don’t use those plug-ins.  They are heavy scents, give many buyers headaches, and make it appear you are trying to cover up some particularly problematic odor.
  • In appealing to all senses, don’t forget TASTE. Leave cookies, chocolate (or both) with a sign that says “help yourself”.  Guess who it really helps?  A buyer with higher blood sugar will stay around longer and like your home more.  Leave water too – hydration improves perception as well!
  • While we’re appealing to all senses, sometimes leaving music on just feels creepy. Buyers think that there must be someone home so they are a bit on edge.  Silence is best.

You’ve set the stage and put your best foot forward for your buyers.  Afterwards come the reviews.  The best review of all?  AN OFFER.   Here’s to you being showered with offers like the star performer is showered with roses…..

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne s a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

BUYER’S BROKERAGE in ATLANTA and WHAT IT MEANS

10 Tuesday May 2016

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Signing legal contracts.  Not on most people’s list of favorite things to do, but in a real estate transaction you will sign many contracts leading up to and during the closing.  In Georgia, we use form documents drafted and provided to us by the Georgia Association of Realtors.  There are individual modifications that may be made, but for the most part they are “forms”.  The first form a home buyer will encounter is the Buyer Brokerage Agreement.

Let’s take a look at what it is and what it means.  The first thing to note is that it’s an “exclusive” buyer’s brokerage agreement.  That means that you are only entering into such an agreement with one Realtor; you cannot enter into multiple “exclusive” agreements.  The form explicitly states that if you have entered into other such agreements, they must be expired or you must terminate them – in other words, you are representing that they are no longer in force.  (There is also a NON-Exclusive Buyer Brokerage Agreement, but most Realtors will work with you on a continuing basis only if you have agreed to work with them exclusively).

While the contract refers to “Broker” it also relates to the individual Realtor.  We Realtors are agents working under a Broker – and so when there is reference in the contract to “Broker” you can also read that as “Realtor” or agent, and those terms are used interchangeably in this article.

You will see that the agreement also states that Georgia Law, code section 10-6A-1, prohibits a Broker from representing a buyer without this agreement in place.  Therefore, before I place on offer on your behalf, I must have this brokerage agreement signed.  Otherwise I cannot act as your agent.  There’s also a “term” to the agreement.  After the ending date, the parties are no longer bound by the agreement.  But even before the end date in the contract the agreement may be terminated by either party simply by written notice to the other.  If that happens, your only obligation as a buyer would be to notify the Agent if you purchase a property you have viewed with or through the Agent so that they can collect a commission on that property.

The agreement obligates the Broker to attempt to identify properties for Buyer to purchase.  Note the word “attempt”.  Sometimes the Buyer themselves will find a property either online or by driving by; but a Buyer under a Buyer’s Brokerage Agreement is still obligated to go through the Buyer’s Broker to see, consider, and make an offer on that property.  It’s important to note that identifying a property to purchase is not the Buyer’s Broker’s only or even sole obligation.  The Buyer’s Broker has a fiduciary duty to protect the Buyer’s interest during the process of purchasing a home.  Identifying the property to purchase is only one small step in that process.

While obligated to make all disclosures “required by law”, the Realtor is expressly NOT allowed to make representations with respect to the race, color, religion, national origin, sex, familial status, disability, sexual orientation or gender identity of a given neighborhood or community.  Notice that AGE is not mentioned in this paragraph.  In certain instances, it is all right for Brokers to talk about age restricted communities.  For instance, there are “active adult” communities in which residents must be over the age of 55.

What about liability for commission?  In Georgia, the Seller pays commissions of both agents – the listing agent and the buyer’s agent.  This obligation is contained in the form listing agreement signed by Sellers and is reflected in the Buyer Brokerage Agreement, under which the buyer is not obligated to pay a commission ever unless expressly set forth in the buyer’s brokerage agreement, or if a FSBO, or For Sale By Owner, refuses to pay the Buyer’s Agent.

The Agreement also provides for dual and designated agency.  Designated agency is common and occurs when two Realtors working for the same Broker are both working on a deal, one representing the buyer and the other representing the seller.  Generally there is no cause for concern, since both agents are obligated to protect their party’s best interest.  But what about when only ONE agent is involved?   It is not impossible for the Listing/Selling Agent to represent the buyer as well as the seller. The type of relationship created here is known as a dual agency and as long as the Listing/Selling Agent fully discloses the dual agency and obtains the written consent of both parties, he or she may represent both the seller and the buyer.

Georgia law provides very specific and strict disclosure of the nature of the dual agent’s role and deals harshly with agents who do not follow the prescriptions, including a description of the types of transactions involved, a statement that the agent will be representing parties whose interests are potentially adverse, that all material information will be disclosed to both parties, and that the client voluntarily consents to the dual agency.

The Buyer Brokerage Agreement, like many real estate forms in Georgia, contains an arbitration provision requiring the parties to arbitrate any disputes arising from the contract.   It also mentions several consumer protection brochures that should also be provided to the buyer:” Protect Yourself When Buying a Home” and “What Buyers Should Know About Flood Hazard Areas and Flood Insurance”.

When you have signed a Buyer Brokerage Agreement, you are embarking on a mutual adventure with your Realtor.  You not indentured to that agent, and if things are not proceeding as you wish there is no shame in terminating the Agreement; but first see if you can work things out with your Agent by letting them know what you need and what you feel you are missing.  Home buying is a life changing process and you need a committed advocate on your side!

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

 

Mistakes Atlanta Homebuyers Make

28 Thursday Apr 2016

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House-flying money

Don’t look at homes you cannot afford. Many buyers make the mistake of not knowing how much they can comfortably afford in advance and wind up looking at homes that they ultimately can’t get. While that would seem to be harmless, it’s really not – if you’re looking at more expensive homes to begin with, you’ll be disappointed by the homes you actually CAN afford.

Which brings us naturally to another common mistake – don’t have unrealistic expectations. If you’ve started out looking at more expensive homes, you’ll start to expect some of those features, even if you can’t afford them. Know your price range, and then know what you can buy and where you can find it. With a small budget, you won’t be able to buy a big home in the most popular neighborhoods. I find that Zillow has helped us in this regard: homebuyers now can see, before I’m even consulted, how much homes cost in a given neighborhood.

Get caught up, but not TOO caught up, in resale value. If you don’t need a great school district, don’t buy a home just because it is in a great school district – you don’t need it.  And school districts change – boundaries and quality both change. So the great school district today might not be the best in five years. Conversely, an up and coming school district could be your best buy. And remember, your home is where you are going to live. Just because you can get a great deal in a bad area of town doesn’t mean you want to live there.

Sometimes buyers get too caught up in worrying about what OTHER buyers want. Consider what YOU want and find it. IF that’s what you are looking for, there are and certainly will be others like you out there to purchase it when you’re ready to sell.

Exceptions here are the tough resale items noted in my last blog post on “red flags.” If you fall in love with a red flag home, fine – just know that your price should take into account the fact that the home will be tougher to resell. But also keep in mind that the serious but FIXABLE problem can be your absolute best value when purchasing a home.

Finally, don’t think you can do it on your own. In Georgia, the Seller pays both agents’ commissions. A good buyer’s agent can save you time and money and negotiate expertly on your behalf, and more than pay for themselves. Your home will be one of the largest investments you will ever make – hire an expert to help!

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

Waving the Red Flag

05 Tuesday Apr 2016

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RED FLAG

As you prepare to give the GREEN LIGHT to the right property for you, what RED FLAGS should you look for?   Most things that are wrong with a property can be fixed by spending some or a lot of money.  Not everything can be fixed, though, and you want to go into your home purchase with eyes open.  Be sure that you are equipped to deal with anything your chosen house might have in store.

Some “red flags” are things that you can’t change about a house and which will make it more difficult to sell when YOU go to sell; identifying these tells us that if you buy that particular home, you must get a *really* good deal in order to make up for the loss in resale value on the other end.

Most “red flags” I am going to point out to you as we are looking at property.  Here are some of the things we look at carefully:

  • Sold “AS IS” with no disclosure. It’s fine if a seller wants to sell “as is”.  What that means is that they don’t want to do any repairs.  But if a seller has lived in the home, I want a disclosure.  Even if they “don’t know” the answers to all the disclosure questions, that in itself is good information.  A caveat here is if the home is an estate sale or foreclosure and the seller has never lived in or owned the home.  In that instance, I do want them to disclose anything that they do know, but there is a reason why they might not know anything about the home.  Sometimes getting a disclosure is as easy as explaining to the seller’s agent that selling a home “as is” is NOT the same as selling a home with “no disclosure”.
  • The lot slopes steeply towards the house. If the front or back yard slopes steeply toward the house, that can signal water problems in the basement or crawlspace.  Proper drainage and regrading can help ameliorate the hydrostatic pressure of ground water pushing against the house, but this type of work is usually quite costly.  What you look for here is that if there IS a slope, there is a flat area between the bottom of the slope and the house and that the water drains around the side of the house and not into the basement or crawlspace.  We also want a grade of not more than about twenty percent and that the water flow is not directed to the house, but around it.
  • Check crime maps. Now, personally I wouldn’t say that high crime in a given area should make it a “no go” because there’s crime everywhere.  A police officer explained to me once that the criminals seek out the most expensive parts of town – why wouldn’t they?  And so even a safe looking area might have lots of crime, and you want to know about it.  Is it a sudden rash of crime or a continual problem?  If there is crime in a given area, you should be looking for a much better deal than you would elsewhere and, of course, you will want a good alarm system.  There are lots of places online to check for crime and for criminals – there are sites that track all sorts of crime, and sites that map the sex offender registry.  Look at them both before you make a decision.
  • Building materials that have been the subject of class action lawsuits:
    • POLYBUTYLENE PIPES: Poly is a form of plastic resin used in plumbing supply pipes extensively during 1975-1995. An estimated one in five homes built during that time will have poly pipes.  Your inspector can typically tell you if the home has poly pipes – the supply pipe is usually grey, and if it is the main line coming into the house, blue.  What’s the problem?  Over time polybutylene pipes deteriorate from the inside, and eventually cracks form.  When you have poly pipes, you never know when they might start to leak, so it’s better to replace them pre-emptively.
    • SYNTHETIC STUCCO: Also known as EIFS (exterior insulating and finishing system), EIFS was introduced to the United States in 1969. At first, it was primarily used in commercial buildings until the 1980s, when it was introduced in the residential market.  It has superior insulating properties, but that is also the problem – the properties of the product that are designed to keep water from getting into the building envelope make it difficult for that water to get out once it does get in.  With commercial uses, the building envelope is steel or concrete.  The problem in the residential market is plywood framing, which is a problem when moisture intrudes, and improper installation.
    • L.P. SIDING: This siding was used extensively in the 1980s. Louisiana Pacific introduced this composite siding in 1985 and it was very popular until problems starting cropping up in the early 1990s. Louisiana Pacific siding is little more than excess lumber which is ground up, mixed with glue, and run through a press; this a perfect environment for fungal growth. The problematic fungus was also part of the package, as it was already present in the wood when it was ground up. Louisiana Pacific received most of the notoriety for this, but several other companies also made a similar product with similar problems.
    • ASBESTOS: Asbestos is an excellent fire retardant and insulator and so was used extensively in buildings in 1940 through 1970. It was then discovered that prolonged exposure can lead to lung cancer when the asbestos is disturbed.  Asbestos can be found in many forms – floor tiles, fiber cement siding, linoleum, roof shingles, and HVAC duct insulation.  Generally speaking, the key is to not disturb the asbestos.  The key to deciding whether it’s a red flag for your purpose is discovering where and how much of it is in the home.
  • FLOOD PLAIN. Always ask if the home is in a FLOOD PLAIN.  If you see a home that you just cannot believe is in your price range, chances are it’s in the flood plain.  There are differing levels of severity; for instance, the 100 year flood plain means that every 100 years, on average, the home will flood.  A 500 year flood plain, then, is less severe since the average is every 500 years.  But keep in mind that in 2009 Atlanta had a 500 year flood and it could happen again in our lifetimes.  In fact, FEMA (the Federal Emergency Management Agency) redrew and expanded the flood plain maps after the 2009 floods.

The key to identifying red flags and deciding if they make a given property a NO GO for you is expert advice.  Have a knowledgeable Realtor on your side and always, always, get a thorough home inspection by a certified and experienced home inspector.  Attend your inspection and ask lots of questions.  Know that properly addressed and accounted for, a red flag property could end up being a great deal for you.  What is a red flag to one buyer can be a great opportunity for someone ready willing and able to deal with the problem.

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

Investing in Atlanta Real Estate

10 Thursday Mar 2016

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A 2014 Gallup Poll shows that Americans believe that REAL ESTATE is the best investment, above stocks, mutual funds, bonds, gold, CDs or money market accounts.   I agree – with the proviso that it is the best investment only when the real estate is chosen very carefully and with expert guidance.  Here’s my “short” guide to real estate investment, with an emphasis on Atlanta.  While your primary residence can be an excellent investment, in this piece the emphasis will be on investing in real estate you do not plan to live in personally.

For many, the best approach is to buy and hold, renting out for a continuous income stream.  Some investors make great money “flipping” houses, but by and large I believe to do that well and profitably, it is best that you be well versed in building and renovation personally, and have a larger amount of time to spend overseeing the project.  So today we’ll concentrate on the investor who wants to buy and hold for some period of time.

For the first time or casual investor (i.e., the person for whom real estate investing or building, developing, or contracting is not a full time job), it is vitally important that you know what you are getting into.  Real estate is not a “passive” investment, even when you have a property manager.  It will most likely take more of your time than other sorts of investments, but it can produce wonderful returns, both monetarily and psychologically.  There is a lot to be said, for instance, for taking an unloved undervalued home and turning it into something beautiful, or choosing a property in a rundown area of town and watching it get better and better as the years go by.  Just ask anyone who is sixty years old or older here in Atlanta.  When that generation was of first time homebuying age (in their mid twenties), Virginia Highland was considered by many to be a rundown, scary area of town and not worthy of purchasing.  Those who did NOT feel that way are the extremely lucky ones who either had foresight or luck or both.  Now those homes are worth many multiples of what was paid for them back in the 1970s.

My husband and I own four rental properties, all in different neighborhoods and different areas of town.  I started with rental properties by holding onto my primary residence when my husband and I got married and bought a home together.  The home I still own is one I loved in a neighborhood that I couldn’t bear to totally leave.  Over the years, I have rented that home to a series of young professionals who have given us an excellent return while generally taking very good care of the place.  From there, for further investment properties I chose areas, communities and properties that I felt were on the “cusp” of becoming something great.

And that is how real estate investors often begin – by holding on to the property they lived in when they go to purchase their next principal residence.  Sometimes they hold onto the old because the market is down and they cannot get what they want or need from the “old” house, and sometimes they hold onto it because it can become an income producing asset.   More often, for both reasons.  And that’s a good way to start.  The home is in a neighborhood you know – and you KNOW the home; its intricacies and quirks – in short, you know what you are getting into.

But say you’re interested in exploring rental property for its own sake apart from your former residence.  Obviously, a great time to do so was in the period between 2008 and 2013 when the mortgage meltdown brought property values down across the board.  But even now that it’s a seller’s market, there are still bargains to be had – you just have to know where to look and choose carefully.

My favorite investment areas right now are the communities straddling the future West Side Beltline.  As you know, the Beltline is a 22 plus mile trail around the city core that will one day link neighborhood to neighborhood and neighbor to neighbor.  When the east side Beltline was completed just a few years ago, property values skyrocketed around the new Ponce City Market, Krog Street Market, and all the neighborhoods nearby.  Indeed, the increase has continued and today properties are being sold with multiple offers above list price – and in some instances, buyers are even taking off appraisal contingencies so that they will win in the midst of a bidding war.

I believe that the west side is poised for the same sort of growth, and it’s getting a leg up from public officials who are espousing the benefits of developing these communities.  In fact, City Council Member Mary Norwood has held bus tours of these neighborhoods to show potential investors and forward thinking city leaders the potential there.

To continue the Virginia Highland example, there are awesome examples of the same type of architecture found in that neighborhood elsewhere in Atlanta for a lot less money.   For instance, the West End and Westview have Va/Hi bungalows built at about the same time; but of course those neighborhoods did not experience the incredible growth and popularity (yet) that Va/Hi has.  In West End and Westview one can purchase one of those bungalows for less than $250,000.  The same bungalow in Va/Hi would cost $650,000 or more.

Once you identify an area of town that is ripe for investment, like the West End, how do you choose the “right” property?  You will want to calculate your ROI, or return on investment.   It’s easiest to illustrate this by example.  Say you decide to buy a property for $200,000.  Your closing costs and some basic repairs on the property cost you about $20,000.  So your cost so far is $220,000.  If you rent out that property for $2,000/monthly, you calculate your return on investment as follows:

$24,000 (yearly income) divided by $220,000 (total investment) = 0.109, or 10.9% ROI

A great return (although keep in mind that you also want to factor in taxes and insurance on the property as investment costs).

Cash is king, and many investors find it easiest to obtain great rental properties by paying cash or using private equity, but if you leverage your investment your return looks even better.  For example:

On that same deal, if I put down 20% for a down payment, my investment is only $40,000 plus closing and repair costs.  With a loan, my closing costs will be higher, so by way of example let’s say repair and closing costs are $23,000 instead of $20,000.  So I’m up to $63,000 cash out of pocket and I’m borrowing the rest.  Say I use a 30 year loan at 4.5% interest – my monthly loan payment would be $811.  If my tenant pays $2,000 a month, that nets me $1,189 monthly, and my ROI looks like this:

$14,268 divided by $63,000 = .22, or 22% ROI.  Unlike the stock market, this is a return that is regular, predictable and which gives you some control over your investment.  And there are other benefits, as John Adams recently pointed out:

  • TAX BENEFITS. You can take a loss for depreciation and apply that loss to rental income OR to regular earned income, lowering your income taxes.  Rental income is not subject to social security tax, and when sold your gain is “long term capital gain” taxes at only 20% federally and 6% in Georgia.
  • BUILDUP of EQUITY. Your tenants’ payments are helping to pay down the balance of your loan, thus increasing your net worth.  This is unique to real estate.
  • This is the tendency of real estate to increase in value over time.  Average appreciation is 4-5% per year.
  • With real estate, you are able to borrow money to buy a larger investment than you might be able to pay cash for.

Real estate can be an amazing investment.  Be sure you have the right professionals on your side, choose carefully, and go for it!

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

Staging to Stay

15 Friday Jan 2016

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Staging

As a Realtor, I help people sell and buy homes… but today I’m going to talk about staying IN your home.  Since most of you will sell or buy sometime in the next 5 to 7 years, today most of you are probably planning to stay where you are for the time being.  If you’re not, call me immediately and let’s sell your home!  But if you’re not planning to move in the very near future, what I’m telling you today will help you regardless.

When I go on a listing appointment with a potential seller, sometimes the house is perfect for selling.  Perfectly staged and ready to go.  You know the home – the one that looks like it belongs in House Beautiful or in the pages of Dwell.  But this is the exception rather than the rule.  If I can come in, get the listing agreement signed, have the pictures taken and get the listing in the system right away, that’s marvelous – but more often there’s work that needs to be done.  And often after the work is done, the seller will tell me that they wish they had done the work long before OR that they now don’t want to move!

SO let’s talk about the advice I’m going to give you when you go to SELL your home – if you do these things now you’ll be way ahead of the game and when you’re ready to really sell, you won’t have as much work to do; if you plan to stay, you’re going to LOVE your home all the more.

  1. CURB APPEAL. It’s everything when you go to sell – the first impression of your home is the most important.  So spend some money on landscaping and make sure you keep it up (this means an irrigation system if you don’t plan to water your plants yourself).  Don’t have too much “stuff” in the form of yard art and the like.  This will be a common theme as we move inside.  While we are out here, keep these in mind:
    1. A fresh coat of paint goes a long way in terms of curb appeal. A home’s exterior should be repainted every 7 years or so.
    2. A new welcome mat IS welcoming. And not that expensive.  Spring for a welcome mat you love.
    3. Consider adding seating somewhere in the front yard – some place welcoming, a place to rest, a place to enjoy the yard. You will meet a lot more neighbors if you hang out in your front yard!
    4. Along those same lines, if you have a front porch, use it! You’d be surprised how many people have awesome front porches and don’t use them.  For a small front porch, a small cafe table and chairs will do wonders.
  1. CLEAR THE CLUTTER. Moving inside, remember that most of us have way too many “things” for comfort.   Clearing your possessions also helps to clear your mind, as pointed out by that great NY Times bestseller “The Life Changing Magic of Tidying Up”.  Because so much of it is relevant to real estate, it’s worth mentioning here:
    1. Only keep things that are useful and which you love. If it’s in a box that you haven’t opened or unpacked in more than a year, chances are you never will and it needs to GO.  Same with clothes!  I recommend a rotation system.  When an item of clothing comes to the front of your closet, you either wear it or donate it.  After it’s worn, it goes to the back. This way you avoid the trap many fall into of wearing the same thing over and over and over and never wearing half of your closet.
    2. The general rule for closets is that they should be HALF full with NOTHING on the floor whatsoever and if there are shelves, nothing folded on the shelves. Instead, use baskets and put extra items in there.
    3. Visual clutter kills a sale, and it makes you feel unorganized and unfocused. The best thing to do is to CLEAR EVERYTHING off horizontal surfaces – that is, from shelves and bookcases and tabletops, then come back and put only a few items back.  Ideally, your home should feel a little sparse to you.  Believe me, you’ll get used to it and you’ll love it.
    4. Much of the psychological difficulty about getting rid of stuff, I find, is that people don’t want to WASTE things. But you don’t have to THROW THINGS AWAY.  Give them to Goodwill.  Make it a goal to go to Goodwill with a bag of items at least once every two weeks until you feel you have clutter under control.
    5. Clearing clutter includes FOOD. How many of the items in your pantry are EXPIRED?  I am guilty of this, and after my son-in-law pointed out a few expiration dates, I went to work clearing out pantry and fridge.  It feels marvelous!
  1. TAKE PICTURES. My stager, after she’s met with my sellers and given a list of things for them to do which includes enhancing curb appeal and clearing the clutter, recommends that they go around their home with a camera or their iPhone and take pictures of each room from multiple angles.  Do this!  Then go back and take a close look at the pictures you’ve taken.  There will be lots of things you don’t notice with your straight eyesight that will pop out in a picture.  There are many reasons for this, but among them that you are USED to seeing your own home.  Seeing your home through a camera lens gives you a new perspective and you’ll notice things you wouldn’t otherwise, like cords that add visual clutter.  Taking pictures will give you a whole new perspective.
  1. REPAIR LIST. This is less visible, but an important part of making your home wonderful for yourself!  Keep a list of all those “little” repairs that need to be done.  You know – the ones that you notice only at certain times but which always bother you when you notice them.  The door that sticks; the drawer that doesn’t close all the way; the dimmer switch that heats up too much; the wood rot on the exterior.  It’s well worth your investment to hire a handyman at least two times a year to take care of this stuff.  Most of them will charge you by the hour plus materials.  And while you’re at it you can have them change the lightbulbs you have trouble changing or install that new light fixture you’ve been eyeing at Home Depot.  If buyers see a stuck door or dripping faucet, they are going to wonder if the home is well cared for and will be looking for other “problems.”  You want them focused on what’s RIGHT with the house.  The same goes for you!

That’s just a start of things I suggest for “staging to stay”.  In a future blog post, I will cover renovations – how to plan renovations that will pay off when you go to sell, but will increase your enjoyment of your home in the interim.  And never hesitate to call me, your Realtor, for advice and counsel.

 

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

SOME MUSINGS ON LOWER PRICE RANGES AND NEIGHBORHOODS

23 Wednesday Dec 2015

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NeighborhoodA reporter working on a story recently contacted me and wanted me to give my opinion on the “BEST” neighborhoods for a given type of buyer in a given price range.  Unfortunately, I can’t know that without knowing the buyer.  Not only WHO you are (first time homebuyer, young family, aging empty nester), but also your personality.  Your personal traits and also your architectural personality.  Do you like historic bungalows, sleek modern houses, or traditional homes with gorgeous molding and impeccable finishes?  With any personality and price range, there are numerous neighborhoods which might fit the bill.  What you need is the Realtor who will get to know YOU and help you find the right house in the right neighborhood at the right price.  I’m going to share with you some insights I recently gave to a writer for Atlanta magazine who asked me to GENERALIZE on the best neighborhoods for a given demographic in a given price range… but keep in mind that it ALL DEPENDS ON THE BUYER.
SOME RECOMMENDED NEIGHBORHOODS for price points/demographics:

I’ll start with another disclaimer: SO MUCH depends upon where the buyer and family members WORK.  Traffic in Atlanta just gets worse and worse – and commute time is precious time away from the family.  So NO neighborhood is a good neighborhood for you if your commute time is more than an hour, I’d say!  And we have good neighborhoods all around – so I usually start by asking the homebuyer, WHERE DO YOU WORK?  And then WHERE DO YOU LIKE TO PLAY/where are your friends?  And gauge the “right” neighborhood accordingly.  Another important factor is the homebuyers’ PERSONALITY.  One may HAVE to live in a walkable neighborhood while another would prefer a newer swim/tennis community. But I will do my best giving you in a general sense some of the best neighborhoods that I think exist for each price range….

Young family
1.  Under 200k: For a young family under $200,000, believe it or not there are several very good options not too far out!  I love Doraville/Chamblee.  Montgomery Elementary School is a favorite.  If they don’t mind living farther out and commute is not an issue, $200,000 will buy you a nice home in far East Cobb.  I usually recommend that the family VISIT the school personally where their child will go.  Some schools that don’t have great scores “on paper” are well loved by some of their constituents, and if there’s an IB (international baccalaureate program), a gifted child can have a great experience even at a not as great school.
2.  200-350k: Closer in East Cobb for the schools.  While the Sope Creek district is outside the range, there are a number of other great schools just a little farther out with houses in this price range.
3.  350-500k: Oakhurst, fun, diverse, walkable, family friendly.  There are also great options in Ashford Park/Drew Valley/Brookhaven Heights.   These are neighborhoods across Peachtree to the east of Historic Brookhaven.  Ashford Park Elementary is well thought of and it’s a very central location, close to I-85 and to 400.  Dunwoody is always a favorite – close in, family friendly.
4.  500k+: I can’t say enough about Decatur, as long as your work commute isn’t terrible from there.  Everyone loves City of Decatur schools, the walkability and the city services.   A lot here depends on the personality of the family!  Inman Park history might be perfect for some (with great Mary Lin Elementary), Druid Hills serenity and history (Fernbank Elementary), or for the rising corporate executive perhaps Buckhead (although homes in 30327 are generally a young family’s “second” home).

20 something
1.  Under 200k: A 20 something could go for a small condo just about anywhere they want to be.  There are even cool places in this range in the heart of Virginia Highland, in Midtown, and in Buckhead.  But if investment is also a consideration, I’d go for Doraville/Chamblee area.  With The Assembly (mixed use) development going in where the old GM Plant was, there’s a whole lot happening in this part of town.  Another great place for investment would be the historic West End – anywhere near where the Beltline WILL be going in the coming years.  There’s some awesome housing stock – great historic bungalows! And soon enough this will be the new “hip” area of town.
2.  200-350k: Ormewood Park, Reynoldstown, Kirkwood – these are the cool areas of town near the Beltline that are still affordable.  I also like SMYRNA near the Smyrna Market Village.  With the Braves Stadium moving to Cobb County, Smyrna is far enough away to avoid traffic (and you’re able to get south without getting on I-75 from there) but close enough to benefit from the development.
3.  350-500k: If they are the Buckhead type, a cool sleek condo walkable to Buckhead action!
4.  500k+: Virginia Highland, Old Fourth Ward, Inman Park, anywhere near the Beltline!

Empty nester
1.  Under 200k: On the north end of town, Kennesaw is a good option and Kennesaw Mountain is a great place to hike and to take the grandkids.  On the east side of town, Stone Mountain has some great solid one level ranch housing that might also be perfect.
2.  200-350k: In this range, a good option might be a one level ranch close to where the kids live (if the kids are in Atlanta) or close to the neighborhood they are downsizing from (to stay in touch with friends).  Lots of great neighborhoods in Tucker and nearby; Tucker has a great small town feel but is so close in, and very warm and welcoming.
3.  350-500k: I find many empty nesters in this price range love the ACTIVE ADULT communities a little farther out of town.  These generally are designed in a 4-pod pattern; basically 4 houses joined together, each all one level with a garage.  There’s a central clubhouse and pool and the exterior maintenance is generally covered by the homeowners association.  Jim Chapman is one of the prominent builders of these communities.  They are generally pretty far outside the Perimeter – there’s one near Serenbe and several which are past Alpharetta.
4.  500k+: The place historically we see empty nesters in this price category purchase is in VININGS, because taxes in Cobb County are much lower for senior citizens (the county takes off the “school” portion of the tax).  Many empty nesters end up in one of the beautiful highrises like One Vinings Mountain and The Aberdeen or buy a Weiland townhome at Paces View with an elevator.  An added bonus is that those properties are within walking distance to the Vinings Jubilee and to many awesome restaurants.

Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.

 

THE WEATHER TURNS COOL, BUT THESE ATLANTA NEIGHBORHOODS ARE HOT!

28 Wednesday Oct 2015

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Hot NeighborhoodsAtlanta has SO many great neighborhoods!  But here’s a quick take on what are some of our hottest (of the moment) neighborhoods and those that are HOT VALUE neighborhoods NOW, this Fall, 2015, in Atlanta.  Note the distinction.  When a neighborhood is “HOT” – i.e., very popular at the moment, oftentimes prices will rise rapidly as buyers bid against each other in their rush to move in.  A HOT VALUE neighborhood is one that is not yet “RED HOT” but which WILL be hot in the coming years, and so there are still bargains to be had.  Now, if you’re bidding in a HOT neighborhood and prices are rising, there is no need to fear overpaying as long as it’s a neighborhood that is likely to hold or increase in value in the coming years.  Usually a neighborhood is HOT either because of location, schools, or both; the location isn’t going to change and if the schools are good, residents always fight to KEEP them that way.

Don’t be concerned that I am leaving out your favorite HOT neighborhood – know that I’m not addressing CLASSICALLY HOT neighborhoods… I’m not addressing them in this particular blog post because they are always hot.  This would include Decatur zip 30030, Midtown, Va/Hi, Morningside, and many northern suburbs such as Alpharetta, Roswell, Johns Creek, and East Cobb in its great school districts.

And also know that there’s no way to address all the “hot” areas in one blog post – I’ll just touch on a few to whet your appetite, and I’ll cover different areas of town.

Let’s start in Ashford Park, just east of Peachtree Road – Ashford Park is HOT.  The elementary school is awesome and there’s lots of new construction.  While several years ago one could get a pretty decent home for $300,000 here, I just sold a teardown LOT for $500,000 with multiple offers in one day.

HOT VALUE near there is CHAMBLEE.  While Montgomery Elementary is not yet par with Ashford Park, it’s getting there, and the City of Chamblee is making great strides in developing retail areas.  THE ASSEMBLY huge mixed use development is going in where the old GM Plant used to be and that’s exciting.  Because it’s up and coming, there are still values to be had.

NOW, let’s go to the Beltline, which is of course driving values everywhere it touches.  We’ll start with Old Fourth Ward, O4W in local parlance, and its neighbors, Inman Park and Poncey Highland.  HOT because of the Beltline (and that’s a continuing theme – the Beltline has made many Atlanta neighborhoods “HOT” so it is important to know where the Beltline IS, where it will be, and where it’s going…. ).  Quick aside = the Beltline is a 22 mile bike/walk/run path being built in a huge Atlanta circle.  Only parts of it are complete, other parts are underway, and some sections may be years in the making. But the O4W portion is complete and with it O4W Park, Ponce City Market, Krog Street Market – the list of “cool” things that have come with it are legion.

HOT VALUE is south of there, in Reynoldstown, Edgewood, and East Atlanta.  There’s also Ormewood Park, nestled between Grant Park and E Atlanta on the Southside (Grant Park has been and continues to be a “hot” area).  The beltline goes right through this great neighborhood of old bungalows and great diversity.  There is section 8 housing a block from $700,000 homes.  There are still a lot of values to be had – I just sold a $250,000 adorable house one block from the Beltline.  The Beltline here is not yet finished, so prices haven’t risen SO high SO fast.

For more hot values, seek out Capitol View Manor, Mechanicsville, and Adair Park – neighborhoods to the west of the afore-mentioned neighborhoods.  These are nestled in west of I-75/85 and south of I-20, and the Beltline goes right beside and through them.

Let’s leave the Beltline for a minute and head down towards to the Airport to stop at The Manchester Arms in College Park for a meal.  Marvel at what College Park is becoming.  Because Woodward Academy is down there, some northern suburb dwellers have built weekday homes for one spouse and the kids to live in before they go back to the northern burbs for the weekend.  PORSCHE moving into the airport has meant even more wealth moving into the area.  College Park is hot; East Point just to the north of it is still a hot value neighborhood.

Back on the Beltline and moving North; HOT is BRANDON SCHOOL DISTRICT = you’ll pay a premium for great public schools in Atlanta, and Brandon is a good indicator of that.  One of my favorite neighborhoods is CHANNING VALLEY, where prices have risen 22% over PRE recession prices; it’s a small friendly diverse neighborhood in a great convenient spot.

HOT VALUE is West Midtown = Howell Station is an example.  It’s near BELLWOOD QUARRY, which saw thousands of zombies in the season premiere of Walking Dead.  Now that the zombies are gone, that park will be the crown jewel of the Beltline.  Because that area is still very industrial and the Atlanta Jail is nearby, prices are still low, but demand is rising.

And finally, up North to just outside the Perimeter.  Smyrna west of 285, just outside Vinings, the area nicknamed “Smynings” is hot but there are also still a lot of value priced properties.  With the new Braves Stadium going in, it’s becoming even more desirable as a place that will be close to the action and the new development; and yet far enough west that residents can still get places without running too much into Braves traffic.

Again, these are just a FEW of the “hot” areas that I am seeing.  Please email me YOUR favorites so that I can feature them in a future blogpost!

 Mary Anne Walser is a licensed attorney and full-time REALTOR, serving buyers and sellers in all areas of Metro Atlanta. Her knowledge of residential real estate and her legal expertise allow her to offer great value to her clients. Mary Anne serves on the Committee that drafts and reviews the contracts utilized by all REALTORS in the State of Georgia. In addition, she is a member of the Atlanta Board of Realtors, the Georgia Association of Realtors, the State Bar of Georgia and the Georgia Association of Women Lawyers. Contact Mary Anne at 404-277-3527, or via email: maryannesellshomes@gmail.com.