News and Analysis
{ Thursday, March 8th, 2012 }
Atlanta Real Estate Reality Check
I recently took a quick snapshot of this real estate “sign topper” in Grant Park:
The sign belongs to fellow Keller Williams Realtor Tony Raffalovich. The day Tony put his sign up, he received an offer. Within 48 hours, he received three more offers. The home is, understandably, now under contract to close.
It’s just one piece of anectdotal evidence, but it is indicative of what I’ve been seeing in the market. It is not, however, reflected in what I’m reading about the market.
Last week, we were treated to our monthly “10,000 foot perspective” of the Atlanta housing market: The Standard & Poor’s Case-Shiller Home Price Indices. Case-Shiller is the leading national measurement tool of the U.S. housing economy, a much-watched report by economists, pundits and politicians. With regards to Atlanta, Case-Shiller basically takes everything it can find in Atlanta- single family homes, condominiums, foreclosures, south of the city, north of the city, you name it- and wraps it all into one (not so) pretty picture. This month, a sampling of what we learned (courtesy of the AJC):
1. Metro Atlanta home prices fell to the lowest point since 1998 as a mass of foreclosures and short sales continued to batter the market
2. Home prices in Atlanta fell for the fourth straight month in November, with a 2.5 percent decline that followed a 5 percent drop in October
3. “Atlanta continues to stand out in terms of recent relative weakness,” said David Blitzer, chairman of the index committee at S&P Indices
For me- and most Realtors that I know- the strange irony is that these headlines have ABSOLUTELY NOTHING to do with the market that we’re experiencing right now. Barely two months into 2012 and I’ve already been in six multiple-offer situations. Together the relatively low inventory levels intown (in areas with “better” public schools specifically), and increasing home buyer confidence has really started to heat things up. This might not provide a lot of comfort to the underwater home seller, but it’s becoming an emerging, highly underrported trend that’s hard to miss for those of us working in the industry.
Atlanta simply can’t be viewed as one single housing market. In reality, it’s hundreds of sub-markets.
{ Tuesday, January 3rd, 2012 }
Mo’nique’s Teachable Real Estate Moment
Below is a letter that I penned to International superstar Mo’nique, upon hearing of her recent real estate related lawsuit:
Dear Mo’nique,
I’ve always been a fan of your work, from your comedic turn in Soul Plane to your tour de force, award-winning performance in Precious. So, I was chagrined to read that you were suing your Atlanta landlord. While I never intended for my first blog post of 2012 to read like an advice column to a celebrity of your stature, I felt that I could offer some valuable advice to others who might find themselves in a similar situation. A few helpful thoughts to avoid conflicts like this in the future:
1. All real estate contracts- leases included- should spell out everything in writing. According to your claim, you had a verbal agreement with your landlords that allowed you to renege on your rental contract within the first 60 days. It’s frustrating how things turn out once the first check is cashed and your boxes are unpacked. Everyone seems to remember the verbal agreement a little differently. It’s an easy conflict to avoid- always put everything in writing, no exceptions. Period.
2. Whether you’re buying or renting a home, always conduct a pre-move-in inspection. Had you walked through the home prior to moving in, you most likely would have smelled the pervasive urine smell, or at least the poop stench. At that point, you could have asked your landlord to address the smell, or just opted to not move in. By moving in and living in the home for some time and then “discovering” the scent, you opened yourself up to both a sticky and stinky situation. A pre-move-in inspection really protects both parties, leaving little doubt as to what condition the home was in prior to the lease start.
3. Never rent a home that Jamal Crawford once lived in. Just kidding. I absolutely love the former Hawks star, and have no idea who lived in your home previously. I found it hard, however, after reading about your lawsuit, not to think of Crawford’s recent Atlanta real estate lawsuit. His landlord claimed his dogs caused $28,000 in damages, including carpets that stunk of dog urine and toilets clogged with dog food.
4. Make sure that renting is the right decision. Mo’nique, your finances are none of my business. But $22,000 a month for a 24 month lease is a ton of money in Atlanta. That’s nearly $530,000 for a two year rental. For $530,000, you could have purchased a pretty nice place outright. It may not have been as posh as the rental – I’m assuming that the property in question was fit for a Russian oligarch - but would have cut the landlord out of the picture.
5. If renting is the right decision, make sure that you’re getting good value. I don’t know where you were renting, but I do have some access to market data via the First Multiple Listing Service (FMLS). According to FMLS, there were only 13 rentals over $10,000 in Atlanta over the course of 2011. When Queen Latifah was in town shooting earlier this year, she rented out Jane Fonda’s absolutely pimptastic penthouse. It listed for $10,000, but according to FMLS it was negotiated down to $8,000 per month. No idea if there was any room to negotiate on your property, but prior to signing a lease you may want to double check the comps, just to make sure that you’re getting good value.
6. The next time you’re in town, bring me on board your team to serve as your Realtor. I want the best for my clients, and dealing with a lawsuit over a stinky, potentially mold infested rental house is the opposite of that. Next time you’re in town shooting, I’ll find you a fantastic rental home. I’ll negotiate good value for your money. I’ve worked with Hollywood-folk, as well as professional athletes, and I understand the special needs that a high profile client expects. I’ll insist that the lease includes anything and everything. We’ll do the most thorough pre-move-in inspection known to man. You will thank me in your next Oscar acceptance speech and I will start a blog called MisforMonique.com.
With regards,
Jon Effron
Associate Broker and Realtor
Keller Williams Intown
{ Wednesday, November 2nd, 2011 }
Six Relatively Important Letters: SPLOST
This is a voting booth. Next Tuesday, you should get to know one.
While you’re probably overwhelmed with just figuring out how you’ll recover from the Kardashian divorce, get ready to deal with a bigger issue: To SPLOST, or not to SPLOST.
SPLOST – which stands for Special Purpose Local Option Sales Tax – is an opportunity for local communities to levy a one cent sales tax to fund “special purposes.” If you were looking to build schools, fix a decrepit sewer system, or fund a once-in-a-generation transportation system overhaul without raising property taxes… SPLOST is for you!
There are passionate voices on both sides of the debate. There’s obviously a certain level of NIMBYism going on- if you’re neighborhood is set to benefit from the construction of a new school, it’s safe to say that you’re going to vote “yes.” Do yourself a favor- learn more about the issue, and vote next Tuesday, November 8 to vote. As a bonus, you’ll also get to vote on Sunday alcohol sales!
{ Tuesday, September 27th, 2011 }
House For Sale, Beer For Free
Anyone who buys this home for a lifetime supply of giant Coors Lite cans probably negotiated a lousy deal.
There are a number of reasons why Canada never experienced a housing bust like we’ve witnessed in the U.S., but evidently an appreciation for free beer is not one of them.
According to the Calgary Herald:
…the sellers of two listed Calgary homes are offering a sudsy incentive to prospective buyers: $1,000 in beer.
Robyn Moser, the MaxWell South Star Realty realtor behind the Hidden Valley and Coventry Hills listings, said the homeowners have agreed to leave the beer behind as part of the deal.
{ Tuesday, March 22nd, 2011 }
Green Housing In Atlanta?
Using the EPA's criteria, Disney's Contemporary Hotel- monorail, 70's style and all- is looking pretty green.
Just catching up on ARC’s Land Matters blog and came across this post: Greenest Homes Those Near Transit. It’s an interesting little post that spotlights a recent EPA report on housing location, and it’s conclusions are obviously damning for a city that can’t function without the freeway. The nuts and bolts:
According to a new study out from the EPA, Location Efficiency and Housing Type – Boiling it Down to BTUs, buildings and transportation together account for about 70% of U.S. energy use and 62% of its greenhouse gas emissions, and homes near public transportation uses less energy than homes in the suburbs, regardless of many energy saving measures the home may take.
Perhaps a few homes within a mile or so of MARTA, in Lake Claire, Inman Park or Candler Park might be worth checking out…
It’s not possible for everyone to move to an Earthcraft Certified home within half a mile of MARTA, but if you’ve got carbon footprint on the brain, that might do the trick…
