Transportation Funding Interfering with Real Estate

Congress tried to pull a fast one using monies from Fanny Mae and Freddie Mac to pay for infrastructure....
December 3, 2015  Dear Mr. Forrest: Thank you for your letter about using housing guarantee fees to pay for transportation.  I share your concerns on this issue. As you know, the federal gas tax has been set at 18.4 cents per gallon since 1993.  Unfortunately, this has not kept up with our growing transportation needs.  This year, Congress needed to reauthorize our nation's surface transportation programs.  In order to pay for this year's bill and avoid raising taxes, the U.S. Senate used money raised by guarantee fees, tools used by Fannie Mae and Freddie Mac to protect against losses from bad loans.   Please know that I oppose using these guarantee fees to pay for transportation.  I support bipartisan, common-sense solutions to repair and maintain our crumbling roads and bridges and our struggling transit systems.  Thankfully, the final version of H.R. 22, the Fixing America's Surface Transportation (FAST) Act of 2015, does not include housing guarantee fees to pay for the bill.  This bill passed the House by a vote of 359-65 on December 3, 2015.  Again, I appreciate having the benefit of your views on this important matter.  On my website, you can learn more about issues and sign up for my e-newsletter.
	Sincerely, John Lewis Member of Congress

Weekly Market Update

For the Week Ending December 4, 2015 Please enjoy this quick update on what happened this week in the housing and financial markets. Recent economic data points to a stable and growing economy. Comments from Fed officials have markets anticipating the Fed will raise policy rates this month. The ECB has increased actions to stimulate the European economy. European economic weakness is not expected to prevent a Fed policy rate hike this month. Jobless claims continue to remain at levels consistent with a strengthening labor market. A strong labor market could contribute to the Fed's decision to raise rates. Private residential construction spending continues to rise, hitting the highest level in 8 years. Construction spending has now risen every month this year. New home sales were up significantly in October over September, and up year-over-year. Prices are also up, and supply remains tight but steady. Pending home sales were up slightly in October after falling the two previous months. Homes continue to sell quickly. Where does a snowman keep his money? In a snow bank. Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time. This Update is from my Prefered Lender ...  See Lenders.BillForrest.com

Annual Cross Creek Sales Data: Values are Up, Up, Up

As a longtime resident and Cross Creek's top-selling real estate professional, part of my job is to keep track of the activity here in Buckhead’s best-kept secret. After reviewing the sales over the past year, I’m happy to report that my predictions were correct: Cross Creek values saw amazing gains over the past 12 months and I’m happy to share the good news.

If you’re not familiar with Cross Creek, let me introduce you. Cross Creek Country Club is a 900+ unit golf/swim/tennis resort community tucked away on 122 acres of beautifully maintained land in Buckhead, Atlanta, Ga. Learn more in my video overview.

Data Summary: A Year of Increased Values

Data from the First Multiple Listing Service (FMLS), Atlanta’s primary real estate listing service, shows major growth among one- and two-bedroom homes. One-bedroom flats saw a 25% average sales price increase. Two- bedroom flats saw an even better 29.08% increase.

Though I suspect three-bedrooms and townhomes have followed the upward trend, there’s not quite enough data to illustrate it. At the end of the third quarter this year, there were several pending sales, but none had closed.  The townhomes are showing great improvement and the three-bedrooms are starting to inch above $200,000 and even more if renovated recently.

Another important data figure is the days on market — how long a home is listed before it sells. Like the sales averages, those numbers have improved as well. In 2015 alone, one bedroom homes went from 67 days on market to just 36 days. While two-bedroom flats and townhomes showed a less significant change, the current averages of 19 days and 8 days, respectively, are much stronger than industry standards.

To put it simply: homes at Cross Creek are selling for more now than this time last year, and they're selling in about a month or less, on average. Contact me today to discuss your home's current market value. It's probably more than you expect.

How I’m Promoting the Upward Trend and Why It's Important

As a Cross Creek resident, I've got a personal stake in community values. Luckily, as an agent, I can help do something about them. Every time I help a seller get the most for their properties, I'm helping contribute the highest possible sale toward quarterly averages and overall value. I've been personally responsible for 24 closings in 2015 alone, more than any other agent, as you can see in the graph below.

There are several reasons why I've closed twice the number of homes as my fellow agents for the second consecutive year. Chief among them, I believe my team's exceptional marketing speaks for itself. Better photos and truly professional listings bring more attention. More attention brings better offers. Better offers mean better sales. As word spreads, so does the list of clients who've seen firsthand how much I love living and working here.

Also, after working directly with several buyers and chatting with countless buyer's agents this year, I realized many of them weren't aware of Cross Creek's ongoing improvement. Our amenities are unique to the area, and our recent renovations are worth sharing. To help better educate outside agents and their buyers, I commissioned professional videos featuring all of Cross Creek's offerings, including our strong reserves, active homeowner's association and other factors that make our community so unique in the heart of Atlanta. I know you and our potential buyers will be impressed by the finished product.

The Future

No one can be absolutely certain, but the sales trend in Cross Creek seems to be headed toward a more traditional route with a slight cooling of the market for fall/winter 2015. One item slowing the sales process throughout the marketplace is the implementation of new lending standards called TRID. This is a momentary speed bump without long-term implications. 

I'm most concerned about the changes to FHA loan guidelines as it addresses the calculation of overall debt-to-income ratio with respect to student loans. In a previous post, I talked about why FHA was great news for Cross Creek.

A lot of the purchases I've seen this year have had FHA financing due to student loan constraints of a conventional mortgage. That FHA advantage has just been curtailed with these changes.  We'll see how it affects our neighborhood in the coming months.

Overall, I believe we'll continue to see above-national-average appreciation at Cross Creek, but I don’t expect 2015's level of gains to continue over the next 12 to 24 months. Prices will eventually plateau, but no one can say when.

As always, I am committed to maximizing values in our community. I would be happy to talk with you about the current market value of your condo, how to best maximize your equity, long-term equity planning, and if renovations will provide a return. Bring any real estate questions you might have, and feel free to share my contact information with anyone you know who's interested in buying or selling in the metro-Atlanta area.

Bill Forrest, Team Leader+Associate Broker
Common Ground Real Estate+PalmerHouse Properties
404-353-9233 • bill@commongroundrealestate.com
Broker: 404-876-4901

My PalmerHouse Story

Today being September 11th, 2015 most of us are reflectful.  I like many of you 14 years ago this morning had no possible idea of how violently our lives were going to change and none of it for the better.  Three states and many business transitions later, I am very happy to be back in Atlanta selling residential real estate and setting records. Add to that the big surprise yesterday for us PalmerHouse Agents from the Atlanta Business Chronicle has made me want to share this blog post.

Those of you that know me, know that I grew up in Real Estate and have been licensed over 20 years now.  During that time my license has been held by almost every national real estate company. So I have a wealth of experience when it comes to real estate firms, their business philosophies, and business models. Believe me when I say PalmerHouse is truly different, it is.

Three years ago when I decided that I was going to leave business brokerage sales and management to return to residential real estate; I started paying very close attention to the Atlanta residential marketplace. I had been very successful for many years in that marketplace before 9/11 and truly missed being an residential agent.  I started noticing a trend. Industry veterans I had worked with and admired with Keller Williams and Re/Max were leaving those national firms to go with this growing local start up called PalmerHouse Properties. It stood out to me because star agents don't make these kind of changes often or lightly.  It is very expensive to move a business to a new company flag.

I was also watching a rising star in the Intown marketplace make a name for himself and the team he was building.  My great friend Justin Ziegler, made a big career change into real estate a few years before and it was fun to watch him succeed. So when he made the switch from KW to PalmerHouse, it really got my attention. Justin founded the Common Ground Real Estate Team and over the next couple of years at PalmerHouse I watched it truly explode into a market leader. I had been referring residential clients to Justin and I really was impressed with the marketing and level of service that his team provided to these clients.  As I watched the marketing and growth of this team evolve I knew that they were truly special.

So when it was time to pull the trigger on my own transition back to residential, I knew without a doubt, It was going to be Common Ground and PalmerHouse.  Now 2 1/2 years later I am the Team Leader for Common Ground Real Estate and could not be prouder of our organization and personally have already completed 28 transactions for the year.  It took 14 years but I'm back!

My first visit to the PalmerHouse Properties main office I was greeted with smile and the staff was truly happy to be there and curious about me.  Wow, that was refreshing and only the beginning of what was to be a very different real estate experience. The positive energy that you feel walking into that office is always a joy.  I have seen many firm's corporate motto's but never one like this: "Respect People, Have Fun, and Make Money" and "ALWAYS putting Agents First" They truly believe and adhere to it.

Founder and CEO, Kevin Palmer found the right people to put into place to build the right corporate culture, management team, and staff. As they have grown this amazing company they have attracted the right real estate talent with the right ideals.  It truly is something different.  I am beyond proud to call Kevin a great friend.

I recently returned from a 7 day educational cruise with 40+ PalmerHouse Staff and Agents.  It was a great experience being with them.  Got to spend quality time with Kevin, Angie, Connie, and Tod. These four are beyond amazing people and truly drive a spirit that is uplifting and just plain fun. Yes I've been drinking the kool-aide but I'm not alone, Just ask the Atlanta Business Chronicle:

Atlanta Business Chronicle's  #1 Best Places to Work:  PALMERHOUSE PROPERTIES 

Life is Great Y'all at PalmerHouse Properties

Less than a month away from TOPGOLF

YAY! It is getting real close to opening... No more schlepping to Alpharetta!
Some preview pics from today:

Full details and free memberships at:

http://topgolf.com/us/atlanta/

July is Renovation Month in Cross Creek

July is Renovation Month in Cross Creek

 With the dramatic increases in sold prices of updated condos in Cross Creek recently, it has created an environment that is idea for renovation.  As part of this, we have 3 condos coming on the market in July that are eligible for a renovation renew program.  All three have not been updated and are available at a price point that makes complete renovation possible in today’s market with 30 year financing.  

What this means is a buyer now has the opportunity to buy a Cross Creek condo and have it completely renovated to look like a new, fully updated to their taste, and fully financed. The buyer will have the option of choosing everything. From all new kitchen, flooring, movie star bathroom, closet system, lighting and more.  These three condos, once completed, will be the best looking homes in Cross Creek.

We have teamed up with two great partners to achieve this feat.  For this program, we have again teamed up with one of the best lenders in Atlanta to provide the financing.  Jason Randall with First Option Mortgage has been a great lender for us in Cross Creek exceeding client expectation and delivering what they promised time and time again.  Our construction partner is TrueSource.  They have a huge following in Atlanta of satisfied customers. TrueSource is providing the design services, wholesale sourcing, and true expert craftsmanship at a cost effective price.  Both of these great partners, like me, are residents of Cross Creek and are committed to help make our community the best it can possibly be.

       

The properties:

206 Triumph – 1 Bedroom 1 Bath

Is being offered for $105,900 renovated or 79,900 as-is

160 LaBlanc Place – 2 Bedroom 2.5 Bath Townhome with courtyard

This unit is being offered for $165,900 renovated or 145,900 as-is

Adrian Place – 2 Bedroom 1.5 Bath Townhome with courtyard

This unit is being offered for $162,900 renovated or 139,900 as-is

If you are interested in getting more information please give 

Bill a call at 404.353.9233 or email at Bill@BillForrest.com

What is a Buyer's Agent and Why do I Need One?

Buyer’s Agent, Why Do I Need One?

Buying a home is probably the biggest investment you will make, with long-term financial ramifications. It calls for many informed decisions and for good advice from a real estate professional. When buying a home, you can learn from the knowledge and skill of a Real Estate Agent. You need to hire one for yourself as a Buyer's Agent.

What does a Buyer's Agent Cost?

• Typically Nothing! But not using one can cost you thousands and a lot of regret.
• A Buyer's Agent's fee is paid for by the seller and already agreed to when they listed the home for sale with a real estate broker.
• Here is the good part: Your Buyer's Agent is contracted by you and they work solely in your best interest; Their loyalty, confidence, and fiduciary responsibility is solely with you, but paid for by the seller.
• They will help you negotiate the best deal possible usually saving you thousands in the process. i.e, getting the seller to pay for things like closing costs, home warranty, and so much more...  

What can a Buyer's Agent do to help you buy the right home for you?

• They will help you determine how much home you can actually afford. Often, they can suggest additional ways to accrue the down payment and explain alternative financing methods. They can also introduce you to a mortgage counselor and arrange to have you “pre-approved” which can improve your negotiating position and enable you to achieve your home-buying objectives faster and with less stress.
• Providing client level services, they can work for you as a buyer’s agent and help negotiate the best price and terms for you. Acting as a liaison between you and the seller to present offers and counteroffers until an agreement is reached.
• They will help you work out a realistic idea of the home best suited to your needs – size, style, features, location, accessibility to schools, transportation, shopping, and other personal preferences.
• They have access to a listing of all available homes in the multi-list system, can evaluate them in terms of your needs and affordability, and will not waste your time showing you unsuitable homes. The Buyer's Agent will give you access to REAL TIME searches that is much more comprehensive than any website or app available to the public.
• They can often suggest simple, imaginative changes that could make a home more suitable for you and improve its utility and value.
• They can supply information on real estate values, taxes, utility costs, municipal services and facilities, and may be aware of proposed zoning changes that could affect your decision to buy.
• Although the law does not normally require an attorney to review documents or oversee real estate closings, they can provide you with a list of law practitioners to choose from if you would like to use the services of an attorney.
• They can help familiarize you with the closing process and they will obtain closing figures in advance of closing for your review.
• They can provide you with a list of qualified home inspectors, pest inspectors, surveyors, and help to coordinate inspection appointments.
• A Buyer's Agent can do these things and so much more for you, Best of all their services are practically free. So why not?

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Top 10 Tips to Successful Home Buying

Tip #1: Research Is The Key To Discovery
Home sellers won’t call you with an offer to buy a maintenance-free home with a wonderful mortgage. You have to find the gems yourself! Only by reading available materials, talking to friends and experts, and spending time looking at different homes, schools, and neighborhoods will you end up with your American dream. Avoid the nightmares by learning how best to buy and maintain a home.

Tip #2: Make A Plan And Get Pre-Qualified
Every important decision needs to be clearly thought out. Developing a home buying plan can help you focus on the important factors and organize the entire process. You may even want to use a binder with sections on house hunting, home financing, service providers, etc. Loan pre-qualifying helps you determine the home price you can afford and presents you as a genuine prospect to the seller. A lender typically uses the 28% formula (your monthly mortgage can’t exceed 28% of your monthly income) in approving your loan. Planning your actions and getting pre-qualified will keep you out of the panic mode and allow you to take advantage of opportunities. A thorough plan will save both time and money!

Tip #3: Value, Value, Value
The days of 10-30% annual appreciation have passed. Homebuyers in the 1970’s benefited tremendously from what seemed like ever appreciating home prices. Nowadays, you’re looking at slow growth while guarding against the possibilities of falling prices, skyrocketing ARM rates and corporate layoffs that can dramatically affect your home values. The classic rule of buying the worst house in the best neighborhood still applies. If you buy with an eye towards improvement, you can customize the home to fit your needs. The saying, “make money buying a home, not selling one,” should keep you focused on the long-term importance of the purchasing price.

Tip #4: Create A Top 10 List Of Amenities
When shopping for a home, list the features (fireplace, fenced-in yard, new appliances, etc.) that are most important to you in deciding on which home to buy. Establishing “your criteria” early on will save time shopping for inappropriate homes and may keep you from buying a home on a whim. As detailed in Tip #3, your top reason for buying a home should be the value you are getting. Some of your top 10 amenities should logically be sacrificed if an incredible value is available.

Tip #5: Fixed vs. Adjustable Rate Mortgages
Which type of loan fits your particular needs? If this will be your first home or a “transitional home” — one you plan to own for a short time, an ARM may be the best type of loan. If it’s going to be your dream home or one you plan to raise a family in, then you may want the stability of a fixed rate mortgage. If you choose an ARM, the index should be based on the Cost of Funds Index if rates are increasing, and Treasury Bills if they are decreasing. The COFI’s are less volatile over time than T-Bills; make sure the teaser rate is understood and what the real rate would be.

Whichever loan you choose; make sure that you scrutinize all the closing costs. If you are required to have a mortgage escrow account and private mortgage insurance, make sure you understand the terms and cancellation procedures (your Real Estate Agent has publications to assist you). Also, make sure there are no prepayment penalties so that you can utilize an accelerated mortgage plan. A good mortgage reduction plan can save you tens of thousands in interest costs, and shorten your loan term, with only small extra principal payments. If you experience negative changes in your job, health, or marital status, you can revert to the standard payments in your mortgage contract.

Tip #6: Sign A Contract That Protects You
Make sure that the contract you put on a house allows you to arrange financing, inspect the home and negotiate any problems that you uncover. Ensuring that the contract you sign will minimize potential legal battles will let you swim in your new pool with your family and neighbors instead of with the sharks.

Tip #7: Put Yourself In The Seller’s Shoes
You are about to make one of the most important decisions that will affect both your life and the life of the seller. If you take time to understand the reasons the seller bought the home, their reasons for selling, and the home improvements they have or have not made, you’ll be in a better position to evaluate the home and negotiate a better deal. In the end, the home buying process excludes the professionals and comes down to the individuals buying and selling the home. A closer look at the seller may help you in deciding whether and for how much to buy a particular home.

Tip #8: Develop A Mortgage Shopping Chart
One of the biggest decisions to make before putting a contract on a home is how to finance the purchase. There are 10,000 lenders competing for your mortgage business. The days of simply walking into the community bank and negotiating with the loan department manager are over. Today, you can apply for a loan over the Internet or even use a mortgage broker to shop for your loan with hundreds of lenders. When choosing a lender, you want to avoid apples to oranges contrasts by comparing fixed rates to fixed rates, not fixed to ARM’s. Create a chart that lists different types of loans, fees, and at least five mortgage providers (including a mortgage broker).

Tip #9: Get A Quality Home Inspection
Although it is hard to believe, more people pay for inspections before buying used cars than when making the biggest investment of their lives – their homes. Paying for a qualified home inspection before you buy a home isn’t just spending “a little extra” for peace of mind; it’s absolutely essential for anyone who doesn’t want to spend thousands of dollars for repairs.

Tip#10: Peace Of Mind: Home Protection Plans
To protect both you as a buyer, as well as the seller, it is a good idea to purchase a home protection plan. What exactly is it? A home warranty, or home protection plan, is a service contract, normally for one year, which protects homeowners against the cost of unexpected repairs or replacement of their major systems and appliances that break down due to normal wear and tear. A negotiable contract between the buyers and sellers which does not overlap or replace homeowner’s insurance policy, this type of warranty can save the new homeowner lots of headaches, as well as put seller’s fears to rest. The warranty covers mechanical breakdowns, while insurance typically repairs the related damage. For example: if a hot water heater burst and destroyed a wall in your home, the warranty would repair the water heater and your insurance would pay to fix the wall.