Jenny Stevenson

Appraisal Frustrations with the ' Big Banks ' ...

Just a short blog on a stressful factor we cannot control as realtors. When we find homes for our clients in this market, that are well underpriced, we want them to see the value as well when their appraisal is done. Being that the lender that they are using will require a 300-350 investment on their end to get the appraisal done, you would hope that it was a 'true market value' appraisal. Not the case with the big banks.

When the 'big banks' do my appraisals, they come in right at sales price, even when I know the home is 50, 100 or 200K under priced! It is very frustrating and has my buyer's questioning the value, even if I have shown them similar past sales of same floorplans in the building or homes on the street/neighborhood. I have since learned to prep them when using the big banks that their appraisal will come in dead on, so this has been eliminated.

Twice, I have had appraisals come in at our original offer price, where the appraiser did not read the signed counter for the higher price. The first one, was a home that we got the day that it came on, that was well underpriced, for 375,000. I knew that in this market it could go for 400,000 and that, in an up market, it would go for 450,000 or slightly above. Our original offer of 350,000 was what was sent to the appraiser, without the signed 2 page counter on top. Once I let them know their mistake, they, WITHIN MINUTES, switched our appraisal back to the 375,000. Thanks for the stress and what a waste of my client's $300.

The smaller brokerage types, like my favorite these days, WR Starkey, always comes in at true value, which is great. My clients are ecstatic to see the value that they have, even in this market. I have had two this past month. One was a townhome that we got at 165,000 in Midtown that appraised at 215,000 and another a single family home in Sandy Springs/Chastain area we got at 400,000 and appraised at 470,000. The $300 is not wasted, and my clients are happy in their home as well as their newly found equity.

One big thing that these true appraisals mean as I help people purchase short sales, is that we have 'room' to move up in price. When the new construction short sale home that I helped a couple buy at 424,900 appraised for much higher, they were able to come up in price to make up for the 9,800 lien on the property. If it had been a 'big bank, right on' appraisal, they could not have bought the home.

Everyone is rushing to buy homes to get the 8,000 tax credit. I am seeing the 300K and under homes priced well becoming bidding wards between my buyers and others. Let's great realistic here people. The government will either extend it out (I have gotten countless emails asking for help petioning for this), or they have set themselves up nicely for a 2010 Homebuyer Credit of some nature. The 8K supposedly ends at the end of November and then we have the slow month of December where everyone is holiday celebrating and then conveniently it is 2010 for them to roll in the new incentive. I believe that they set this up on purpose this way. They may extend the homebuyer credit but it will just be through November to avoid further lull on that month than there already in..then will roll in the 2010 plan to make everyone all smiles again. Also, think about it, what's the worst that could happen: They take it away and then there are less homebuyers competing with you..you will most likely save more with this scenario than you would make on that extra 8K when all is said and done!

In the meantime, those stressing out about it ending in November that have true cause to be stressed are the real estate agents and home sellers that are selling short sale homes. The potential buyer's agents are calling me many times a week to ask if my short sale (I have two on the market for sellers) will be able to close by the end of November. There are no promises there for anyone! Also, buyers beware as only 27-28% of short sales listed out there actually close. What does this mean? Agents are marketing homes for unrealistic values and skewing buyer and agent perceptions of area and community market values. They are also holding up buyers from buying other properties as they sit in 'contingent on approval' pending stages for months on end, only to have a 27-28% chance of closing.

Agents, please do your due diligence and find out if your seller is making payments. If they are, you do not have a short sale. Even if they are not, do they have a hardship and have they submitted this hardship letter. Do you have a BPO and package already into the bank? If not, you are not nearing short sale status by any means...

Back to the meaning of this: Buyers, don't stress to get in by the end of November..take your time, visit all potential areas and neighborhoods, understand values, and then, when you find the right home at the right value in the best area or neighborhood for you, make an offer. Whenever that is, that's the right time!

Jenny

New residential projects are kicking off in The Old Fourth Ward, a transitioning Atlanta district.

Southeast Capital Partners Inc., an Atlanta-based construction company, is demolishing three former Ivan Allen Workspace buildings to begin building Six60 at Old Fourth Ward. Six60 will take up approximately 5 acres on Ralph McGill Boulevard, a little south of City Hall East.

Contained in this development will be a mix of 301 units, including townhomes, apartments, and lofts. These will be luxury residences designed for the young in-town crowd looking for a convenient location primarily near downtown. There is also a planned (Old Fourth Ward) Park that will be located nearby.

Phase One units could be on the market as early as fall '09 with rents ranging from $900 to $1800.

Right now is a wonderful time to buy a home in Atlanta! Whether you are venturing into home-ownership for the first time, or you are looking to move into a nicer home, Atlanta is where it's at! Here's why:

1. Atlanta continues to be a hot market, ranking 4th in national home sales. With a stat like that, buying and investing present great opportunities in Hotlanta.
2. The development of energy efficient building techniques and products translate into savings for the buyer. This makes already affordable homes that much more affordable.
3. There is such variety in Atlanta's housing market. Whether you're talking about styles of homes or the interesting neighborhoods in and around Atlanta, there is no doubt that Atlanta has something for everyone!
4. Location...location...location. They don't call it Hotlanta for no reason! Warm summers and mild winters along with a seemingly endless variety of activities year-round have made Atlanta a hot-spot.
5. Owning a home is an integral part of the American Dream. The range of options and prices in Atlanta help make that dream a reality for millions of Atlantans.
6. Owning a home is also a great investment that can grow over time and with the great deals that exist in this market, one can stand to generate substantial returns in the future.
7. The Atlanta market is a buyer's market! What more can be said?
8. Interest rates remain low which present some wonderful financing options.
9. Buying a home in Atlanta may make you eligible for tax deductions.
10. Building wealth is important to longterm financial stability and buying a home is one way to do so!

The St. Regis, a standard in luxury hotels/residences, is currently under construction at 100 West Paces Ferry Road slated to open later this year. This piece of prime Buckhead real estate is already garnering plenty of support from Atlanta's elite as 45 of the 50 condominium residences making up the top floors of the 26-story building have already been sold at prices ranging from $3.4 million to $8.5 million. These exclusive residences each have a corner view, large terrace and an elevator, which will open into the condominium's foyer. St. Regis hotels are well known for their luxurious amenities and unparalleled services. This hotel will be an exciting addition to a changing Buckhead.