Michael Neville - Intown Atlanta Realtor

We are two months into 2009 and I think perhaps an “update” is in order. There are two sides to every coin and the same is true for our current market. For this update I will touch on how our current market effects both Buyers and Sellers. Expert advice, insight, and objectivity are what we strive for at Michael Neville & Associates.

Buyers:

1. Lots of options. There are currently 45,648 ACTIVE single-family properties listed in the FMLS for Metro Atlanta. Nearly 30% of these are Short Sales or Bank Owned properties.

2. The FHA limit has recently increased from $271,000 up to $346,250. This allows qualified buyers to come in with only 3.5% down and with the limit being raised, options abound.

3. Banks are committed to getting rid of their inventory. We currently work with Fannie Mae and Countrywide and both have made it clear that they want their inventory in escrow in less than 60 days. This is usually synonymous with aggressive pricing initially and price reductions if offers are not present.

4. March 6^th marks the end of the Moratorium that was put on foreclosures by most major lenders including Fannie Mae and Freddie Mac. With this Moratorium coming to an end, the bank owned inventory should increase throughout the valley. This means more homes that are priced to sell. Many of these homes are in tough condition and thus can only be purchased with cash.

Sellers:

1. The FMLS inventory has dropped to under 50,000 properties for single family homes. This is a step in the right direction, but realistically a healthy inventory for Metro Atlanta including Dekalb, Fulton, and Cobb counties would be closer to 30,000.

2. Homes are still selling. There were 4,161 closings in January & February, which are traditionally the slowest months of the year in the Metro Atlanta real estate market.

3. With the FHA limit increasing to $346,250, the sellers who are priced at $350,000 have a much better chance of getting a buyer. 87% of the closings in January & February were under $350,000.

Summary:

· For the next 2-3 years there will be great deals for qualified buyers who are ready and willing to pull the trigger. We can help you analyze a property and determine if it is a great deal or just an OK purchase.

· If you can wait and do not need to sell your home now, you are better off waiting. In order to sell in our current market you must be willing to compete with Short Sales and Bank Owned properties. Usually this means pricing aggressively and being willing to reduce the price if the traffic is not present.

· If you are selling and buying, there is no such thing as a “bad market”. What you lose on the sale, you will be able to make up on the purchase (especially if you are buying a more expensive property – actually you should come out ahead on the equity position).

· If you determine that selling is a necessity, we can provide maximum exposure for your home and help you negotiate the transaction. With over 40 websites where we advertise your home, video tours, imbedded videos & virtual tours - we help maximize the viewing potential.

If you have additional Real Estate questions, or have interest in a comprehensive list of REO properties for sale, feel free to give us a call.

All The Best,

Michael

Michael Neville & Associates

Keller Williams Realty Atlanta Midtown

www.LiveInAtlantaGA.com

404-310-8364

There has been a lot of discussion about the housing market on Capitol Hill for some time now and President Obama signed the American Recovery and Reinvestment Act earlier this week. I wanted to ensure you, as well as anyone you know who may need to understand this piece of legislation, are aware of some of the important details about the Homebuyer Tax Credit.

There is no doubt that anyone capable of qualifying to be a 1^st time homebuyer will receive unparalleled benefits that our country has not seen. The amount of inventory, low sales prices, low interest rates, and new tax breaks make homes more affordable now than ever before for 1^st time homebuyers!

Here are the important components for you and others to keep in mind:

Definition of a 1^st time homebuyer

Purchases (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. You CAN have investment properties. You CAN have owned principal residences before, just NOT in the last 3 years.

Amount of Credit

Lesser of 10% of cost of home or $8,000 (*up from $7,500 in 2008)

Eligible Property

Any Single Family Residence (including condo’s, co-op’s, and townhomes) that will be used as principal residence.

Refundable

Yes, it reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit is refunded to the purchaser.

Income Limit

Yes, the full amount of credit is available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Partial credits will exceed those caps up to ($95,000 and $170,000).

Revenue Bond Financing

Purchases who utilize revenue bond financing can use credit. (*was not the case in 2008)

Repayment

NO REPAYMENT for homes purchases between Jan.1 – Dec. 1, 2009 (*HUGE Difference – 2008 plan was repaid over 15 years starting with 2010 tax filing)

Recapture

If home is sold within 3 years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009.

We have asked repeatedly on behalf of our past clients if this legislation would retroactively apply to homes purchased in 2008 under the previous legislation. At this time, we are not aware of this impacting anything beyond the dates clearly outlined in the legislation of January 1, 2009 – December 1, 2009.

I’m happy to answer your questions, or those of anyone you know on this topic. Please feel free to share this valuable information with anyone you know as well as my contact information, so I may assist in any way possible.

I'd love to assist you in being able to apply for the $8,000 tax credit by becoming a homeowner in the Metro Atlanta area. If you'd like to see homes in the Metro Atlanta are and particularly the East Atlanta, Ormewood Park, Grant Park, Oakhurst, Winnona Park, Kirkwood, Virginia Highland, Candler Park, or the Decatur Village areas- don't hesitate to give me a call 404-310-8364 or shoot me an email at mike@michaelneville.com .

Michael Neville & Associates : Keller Williams Atlanta Midtown - Servicing Intown Atlanta Neighborhoods

If you've been in this industry long enough to go on even a handful of listing consultation appointments, you've heard the infamous line: My house is "different" than the rest on the block, it's "special". Well, this may or may not be true - but it tends to be coming from a subjective rather than objective point of view.

Yes, there are differences between homes with certain necessary adjustments needing to be made for an updated kitchen, bath, or beautifully fenced backyard - but on the other hand, we'll need to make adjustments for deferred maintenance, the rot in the doorways, termite damage, an old HVAC that's on its last legs, etc.

Whatever the case may be - here are a few OBJECTIVE things to keep in mind as a seller. It doesn't matter if you're in Atlanta, GA (Fulton County or Dekalb County), Los Angeles, CA or Washington, D.C. the information is applicable to ALL REAL ESTATE MARKETS.

Pricing Misconceptions

It is very important to price your property at competitive

market value at the signing of the listing agreement.

Historically, your first offer is usually your best offer.

It's NOT about:

1) WHAT YOU PAID

2) WHAT YOU NEED

3) WHAT YOU WANT

4) WHAT YOUR NEIGHBOR SAYS

5) WHAT ANOTHER AGENT SAYS

6) WHAT IT COSTS TO REBUILDTODAY

Buyers & Sellers Determine Value

The value of your property is determined by what a BUYER is

willing to pay and a SELLER is willing to accept in today’s market.

Buyers make their pricing decision based on comparing your

property to other property SOLD in your area.

If you have questions about your pricing strategy feel free to give me a call, I promise to be honest with the good, the bad, or the ugly. My name & reputation are on the line on each and every listing --- as well as my marketing dollars, so please believe I want to get you the most money the market will allow - but I will not step beyond what the market will hold (overpriced & underpriced listings don't help the neighborhood, sellers, or agents involved - it's about maximizing fair market value).

And if you'd like to listing consultation in East Atlanta, Ormewood Park, Grant Park, Oakhurst, Winnona Park, Kirkwood, Virginia Highland, Candler Park, or the Decatur Village - don't hesitate to give me a call 404-310-8364 or shoot me an email at mike@michaelneville.com .

Michael Neville & Associates : Keller Williams Atlanta Midtown - Servicing Intown Atlanta Neighborhoods

THE OAKHURST WINE CRAWL is back for its' 7th year!

On February 28th, 2009 from 4-7pm more than 20 Oakhurst local businesses will open their doors for you to sip a glass of wine while seeing what they have to offer.

This event SELLS OUT QUICKLY!

There are only 750 tickets to the event. It is best to purchase them in advance for $20 vs. $25 the day of the event (that's if there are any left at that point).

Advance Tickets are available at: Steinbecks, Kavarna Coffee, and Universal Joint. Make sure to bring Photo ID to pick up glasses.

Parking:You want to park as close to the Oakhurst Village at the intersection of East Lake Drive and Oakview Rd as possible.

If you have questions feel free to give me a call, this is sure to be a blast.

And if you'd like to get a tour of the available homes in Oakhurst, or any of the surrounding neighborhoods: Winnona Park, Kirkwood, Virginia Highland, Candler Park, East Atlanta, Ormewood Park, or the Decatur Village - don't hesitate to give me a call 404-310-8364 or shoot me an email at mike@michaelneville.com .

Michael Neville & Associates : Keller Williams Atlanta Midtown - Servicing Intown Atlanta Neighborhoods

Mike’s Corner

The last few weeks have been eventful and historic for our country as well as the Atlanta real estate market. The Bailout is being debated on Capitol Hill, including a bill proposed by Ga. Senator Johnny Isakson that includes a $15,000 tax break to anyone who buys a house in 2009, which was unanimously approved on Wednesday.

Atlanta is experiencing a number of changes, as signs of the times, with a new development in the Heart of the City about to be part of a liquidation auction sale (The Element across from Atlantic Station- call me for more details & the background info on the whole situation), foreclosures so low in Dekalb County, Fulton County, and Clayoton County that people are buying houses cheaper than cars (If you need proof please email me and I’ll send you over 100 examples from the last few months), interest rates at historical lows, and sellers beginning a heavy new trend in short sales (selling for less than the outstanding loan on the house)– NOW is the time to SEIZE THE OPPORTUNITY.

If ever there were a time to buy, I’m declaring 2009 is the year of the Buyer! The Chinese New Year said it is the Year of the Bull, but you'd be crazy not to think homebuyers, especially 1st time homebuyers are in an incredible position to seize the moment & some instant equity. You won’t know the how great of an opportunity it is until you see the results in your rear view mirror. If you or anyone you know needs assistance navigating the real estate market, please don’t hesitate to call me!

The great news is that with the dip in prices & interest rates – we’re now in a position where the percentage of household income allocated to pay mortgages is near its all-time low! Beyond that, Metro Atlanta's cost of living traditionally been a fraction of other major metropolitan areas around the country.

Feel free to email or give me a call to discuss the Metro Atlanta housing market or send a referral my way. I posted a "Hot Buy" list to my sphere of contacts about a 4 bed/2 bath home on the border of Grant Park/Ormewood Park (2 neighborhoods where the average homes on the market range from 200k-450k) that hit the market at $29,900 - that's right UNDER THIRTY THOUSAND DOLLARS! Within 3 hours I had 6 people interested in buying the home - except it had already gone to a multiple offer situation with so many offers flooding in that the broker & bank cut off all offers.

This is the time to SEIZE THE MOMENT and CREATE GENERATIONAL WEALTH (take care of yourself and the family members that come after you by creating a portfolio of wealth).

Call me at 404-310-8364 or email me at mike@michaelneville.com