Andy Peters

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Simple Math:

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

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

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

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

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

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

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

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

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

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

3rd Quarter 2006 - 47.8% of listings failed

3rd Quarter 2007 - 62.5% of listings failed

3rd Quarter 2008 - 66.9% of listings failed

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

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

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

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

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

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

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

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

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

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