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How Long Will It Take To Sell My House?

by Leslie Edwards

To figure out how long it should take to sell a home, I use a formula that will calculate the absorption rate of each neighborhood. Knowing the correct absorption rate for the neighborhood will help the seller determine a realistic asking price for their home. 

The absorption rate formula is based on past sales, days on market, and the amount of houses currently for sale in the neighborhood/area. This information tells us how many months supply of inventory is presently on the market, and therefore provides us with information that indicates just how many months it may take to sell a particular home.  

A 6 month supply of inventory is telling us that it may take a full six months or more to sell the house. In addition, a 6 month supply is considered a balanced market, but anything over 6 months indicates there are too many houses and too few buyers, indicating it may take up to a year or more to sell the house.  

A seller whose house falls into the category of 6 months or more should be willing to position their house, in terms of price, condition, and incentives, in a way that will give them a distinct advantage over their competition.

 Sellers have different needs, motivations and desires which typically determines how aggressive they should be on their asking price.     In today's challenging real estate market, because sellers are in a price war and a beauty contest at the same time, it takes aggressive pricing and staging to show the home at it's best.                                                                                                                                                               If you would like to discuss the absorption rates for homes like yours, call or email me.  I want to be your real estate resource. 

 

leslie edwards                                                                                 Environmentally Aware, Socially Conscious, Politically Active, Real Estate Agent                                                                                         770.460.9448                                                                                        CDPE Certified Distressed Property Expert                                                CRS   Certified Residential Specialist                                                       Epro  Certified Internet Professional                                                           ABR   Accredited Buyer Representative                                                    GRI    Graduate of the Realtor Institute Dave Ramsey Endorsed Local Provider

Selling South Metro Atlanta including:Clayton, Fayette, Henry, Coweta, Merewether, South Fulton & Spalding Counties

All the towns and cities south of the Atlanta International Airport, including: Brooks, College Park, Fairburn, Fayetteville, Jonesboro, Locust Grove, McDonough, Newnan, Sharpsburg, Stockbridge, Palmetto, Peachtree City, Tyrone and more                                                                                           Moving Families Since 1978                                                                       Let My Experience Work For You                                                               fax:  770.460.0739 See all of the properties for sale in the Multiple Listing Service at www.SouthMetroAtlantaMLS.com                                                                                          .com                                              leslieedwards@leslie RE/MAX Around Atlanta.com/blogleslieedwardswww.

 Almost everyone knows someone who is behind on their mortgage payments and wants to avoid foreclosure to save their credit, relieve the uncertainty, and most of all, help their family.

Have them call me for Short Sale and Pre-Foreclosure Solutions and let's get started on the path to recovery.

http://www.leslieedwards.com/Blog/What-is-a-Short-Sale-and-Why-You-Might-Want-One

  

 

 

 

 

 

 

Home Prices Continue to Fall

by Leslie Edwards

WASHINGTON (AP) -- Home prices are falling further, suggesting a bottom hasn't been reached in many metro areas.

Millions of foreclosures are expected to pour onto the market in the coming years. That's likely to force prices down and hurt even cities that had begun to rebound. Investigations into banks' foreclosure paperwork could further deter buyers and weigh down prices.

The past few months have been the worst time in a decade for the housing market. Few people have bought homes, and among the small pool of buyers, many have purchased foreclosures and other distressed properties.

The impact was apparent Tuesday when Standard & Poor's/Case-Shiller released its latest index for home prices in 20 major U.S metro areas. The average price for all markets fell 0.2 percent in August and 15 cities posted declines.

But the foreclosure problem is far from over. A "shadow inventory" of homes on the verge of foreclosure is bound to force prices lower well into next year. About 2 million loans are in foreclosure, and another 2.4 million borrowers have missed at least 90 days of mortgage payments, according to LPS Applied Analytics.

"It's like a never-ending supply" of homes, said Daniel Alpert, managing partner at the New York investment bank Westwood Capital. He expects prices to fall another 10 percent over the next year -- and not improve much after that.

Most troubled homeowners are concentrated in cities that have already been battered by the housing bust. One in 15 homeowners in Las Vegas received a foreclosure notice in the first half of the year, according to foreclosure listing service RealtyTrac Inc. In the Fort Myers, Fla. metro area, the ratio was one in 20; in the Phoenix metro area it was one in 23.

"If you're going down the hill, you tend to keep going down the hill," said Mark Fleming, chief economist at real estate data firm CoreLogic.

In Las Vegas, prices have fallen 57 percent from the peak four years ago. They are now at the lowest point since spring 2000. In August, they ticked up slightly -- 0.1 percent -- according to the Case-Shiller report.

Investors buying properties to sell or lease have helped to stabilize the nation's worst housing market. Demand is also coming from retirees, said Paul Bell, a real estate agent with Prudential Americana Group in Las Vegas, who noted that 45 percent of the city's buyers are paying cash

That's "helping to contribute to a floor" in the city's home prices, Bell said.

Some markets are doing relatively well. Chicago, Washington and New York have been showing consistent price increases since spring, though the pace of those increases faded over the summer. In the nation's capital, the large number of federal employees and government contract workers have kept the economy strong. New York has seen fewer foreclosures than other cities.

California may offer the most complex housing picture. Even though the state's major cities have started to show weakness, prices are well above the bottom of spring 2009.

The San Francisco area's home prices have surged more than 21 percent since then. Prices in San Diego have risen nearly 14 percent and had increased for 15 consecutive months before falling in August.

In Los Angeles they have increased by more than 10 percent in that period. Home prices would have to rise by more than 50 percent in each of the markets to return to their peaks during the housing boom.

It's still unclear how the allegations of lenders using flawed documents to foreclosure on homes will affect housing markets. Bank of America and Ally Financial Inc.'s GMAC Mortgage have started processing foreclosures again, after calling a temporary halt while they reviewed mortgage documents.

Some buyers are worried that the sale of a foreclosure could be contested -- or even canceled -- if the previous owner claims the foreclosure was invalid.

Good News, Bad News

by Leslie Edwards

New homes starts fell to the lowest since 1945.  Several local builders have gone out of business and new homes are being foreclosed at rates I have never seen during my 30 years as a REALTOR. This is bad news for builders, construction workers, the trades, vendors and real estate agents who typically work in new home neighborhoods.  The effect on small business, individuals and families is widespread.

On the other hand, while there has been a glut of new homes on the  market for years, builders continued to build on speculation, hoping for a buyer. It was obvious that there were more new homes than potential buyers and builders were competing for a few buyers. What is happening now in new homes is truly a market correction. It had to happen.

The benefit for a few is that qualified buyers can buy new homes for much less than they would have appraised for two years ago.  The builder may not be in business and unable to come back for minor repairs under a builder warranty but, if the deal is great, a buyer can afford a handyman.  All new homes are inspected by the counties throughout construction so buying a foreclosure does not mean less quality.

As the inventory of new homes declines, prices will begin to rebound.  It is all about supply and demand.  It will take awhile, but it will happen. 

If you are a buyer, this is the time to get th emost house for your money. Buy low, sell high.

If you have questions, comments or just want to talk real estate, call me, email me or leave your comments here.  I am available for a FREE buyer or seller consultation, with no obligation to buy or sell with me.

leslie edwards                                                                                sells real estate                                                                 770.460.9448                                                                         RE/MAX Around Atlanta                                             leslie@leslieedwards.com                                                           Search the entire MLS at www.leslieedwards.com

Conserve, Reuse, Recycle

3rd Quarter 2008 Fayette County Real Estate Market

by Leslie Edwards

There are currently 1350 single family homes for sale in Fayette County. The average list price of the homes for sale is $400,770.                     From July1st through September 30th: 308 homes sold with an average sales price of $299,044 down from the 1st quarter average sales price of $309,228.  392 homes expired unsold which means that 56% expired and 44% sold.

76% of the foreclosures sold with an average sales price of $235,598 while only 16% expired.  Foreclosures tend to be priced way under market, which helps drive the prices down, which forces anxious sellers to sell for less, which continues to drive the prices down. And it goes on and on....

But it is not all bad news. Smart buyers know that this is the perect time to buy.  Prices are down, interest rates are low and there are plenty of homes to choose from.  Buy low, sell high.

During my 30 years in real estate, I have seen a few really bad markets.  When Jimmy Carter was President, although the interest rates were 14% to 18%, people still bought homes.  I sold 40 houses in the worst year with no help, no fax, no cell phone and no GPS.

It is never as bad as the media would have us believe.  Real estate, like the stock market, moves in cycles, up and down.  Buy low, sell high.

If you want to or need to sell and are willing to sell at a discount, call me.  Experience pays in any maket.  In a challenging market, the agent you choose is critical.  I offer a FREE, no obligation, consultation to give you the information you need to make you real estate decisions.  Call me. I want to be your resource.

leslie edwards                                                                                   sells real estate                                                                                 770.460.9448                                                                                 RE/MAX Around Atlanta                                                                    Serving South Metro Atlanta

 

Buy and Bail, A new trend

by Leslie Edwards

    For the past few years adjustable rate mortgages, 103% mortgages, interest only and other no down payment financing options, coupled with artificially high appraisals and prices have resulted in many homeowners being upside down in their homes.  They owe much more to the bank than the home can sell for.                                                                                                                    When nearby foreclosures sell for thousands less than the paying homeowner owes, it may take years for home prices to recover.  Some paying homeowners with good credit, have bought new homes, moved and simple stopped paying on the first home.  Hence the term buy and bail. The people who do this give up their good credit to get out from under a devalued property.                 

I recently visited a newly foreclosed home on behalf of the bank, to determine if the home was occupied. I met the former homeowner to arrange for the family to move out.  The neighborhood was one quarter built out and the rest of the lots were overgrown with pipes sticking out.  The homes were large and attractive.  The buildier had gone out of business and at least one third of the new homes were foreclosed and for sale ast substantially reduced prices.  The man I spoke to told me he had paid $344,900 for his house and the same plan a few doors down just closed for $280,000.  He had to move for his job and could not sell his house.  He could not afford to pay for a home he did not live in and felt he had no choice. He had good credit and was able to buy in his destination city before he stopped making payments on the home he was leaving.                   

While this is wrong on so many levels, this trend is part of the new reality.  BUY AND BAIL. Not recommended.

leslie  edwards                                                                                     

sells real estate                                                             770.460.9448                                                                             RE/MAX Around Atlanta

Clayton County Foreclosures

by Leslie Edwards

According to the news this morning, one in every ten homes in Clayton County is currently in default.  That statistic makes it very hard for owner occupants to sell their homes when the foreclosures in their neighborhoods continue to push prices down.  It is happening in all price ranges and the only homeowners who are immune to the fall in value are the ones who are not trying to sell. 

 The market will move back up over time but it will take some time for the market to absorb all of the homes for sale right now in Clayton County.  As always, the people who survive severe shifts in the market hang in there longer.  Don't panic sell if you on't have to move.  If you want to move, but don't have to move,you will have to decide how much equity are you willing to lose to move now.

If you are a buyer, this is the best buyer's market in years and buyers should be buying.  The rate is very low compared to not so long ago when rates were in the double digits: 10% to 16% interest rates were common.  Many buyers do not appreciate what an opportunity this is to buy more house than they could afford in any other market because of  low interest rates and the lower home prices.  Those buyers will regret the hesitation when the market shifts and it always does, and when interest rates increase.

Real estate moves in cycles and this is just part of that constant change.  History has shown that no matter how low and slow  the market gets, it has always  improved and often with a huge rise in values.  It is just part of the cycle.

Call me if you have to sell, really want to sell or if you want to take advantage of these great opportunities in the real estate market.

leslie edwards   sells real estate   770.460.9448   RE/MAX Around Atlanta

leslie@leslieewards.com

 

Displaying blog entries 1-6 of 6

If you hear of anyone who wants to buy or sell in any of these areas, please mention me and then call me so I can contact them. I appreciate your referrals!