Welcome!

I am an Atlanta native and made the decision in 2007 to leave my job as an architect/urban planner to get my real estate license. This was a difficult decision but has been great since my very first day in my new career and I am really enjoying it! It is so rewarding helping people find that perfect home, and it allows me to continue to satiate my love of good architecture and great neighborhoods!

I attended Georgia Tech (GO JACKETS!!!!) which is where I met my husband. For almost a decade we lived in one of Atlanta's fabulous in-town neighborhoods in a great 1920's Craftsman bungalow with our two dogs and two cats. Following the birth of our first child, we bought a foreclosure in the west Buckhead area and fully renovated it using an FHA 203k loan, which was a fun and sometimes daunting process. And just prior to the birth of our second child, we purchased and renovated a home in downtown Historic Roswell, completing our personal tour of some of Atlanta's best neighborhoods to live in!

I decided to create this blog in order to share useful information and resources about the real estate market and home buying process, as well as hopefully bring some humor and levity to what is often a complex and intimidating process. Enjoy!!!

Wednesday, December 10, 2008

Cost vs. Value: Remodeling Projects that Pay

Remodeling magazine’s 2008 "Cost vs. Value Report," done in cooperation with REALTOR® Magazine, has just been released. If you have been on the fence about whether to tackle that kitchen remodel or bathroom addition, be sure to check this out! The report shows that maintenance-related projects and moderately priced upgrades are providing stable paybacks, even in a slower market. Despite home price drops in many cities, remodeling projects are holding their own as a way for owners to add value.

Top 10 Project Paybacks

Once again, exterior remodeling projects lead the way for recovery on dollars spent in this year’s Cost vs. Value survey. When you compare the national averages, replacement projects that boost curb appeal—siding, windows, and decks—give you the greatest chance of recouping your money. Inside, only kitchen remodels can compare, at least on a national level.

1. Upscale fiber cement siding (86.7%) ***
2. Midrange wood deck (81.8%)
3. Midrange vinyl siding (80.7%) ***
4. Upscale foam-backed vinyl (80.4%) ***
5. Midrange minor kitchen remodel (79.5%)
6. Upscale vinyl window replacement (79.2%) ***
7. Midrange wood window replacement (77.7%) ***
8. Midrange vinyl window replacement (77.2%) ***
9. Upscale wood window replacement (76.5%) ***
10. Midrange major kitchen remodel (76.0%)

On the local front, Atlanta homeowners can see even better returns!

Additions (midrange/upscale)

Bathroom - 66.1% / 68.9%
Deck (composite) - 75.9% / 65.9%
Deck (wood) -
83.9%
Garage - 70.1% / 66.8%
Master Suite - 71.4% / 65.3%

Remodels (midrange/upscale)

Basement - 78.1%
Bathroom - 75.5% / 72.2%
Kitchen (major) - 79.1% / 73.3%
Kitchen (minor) - 79.9%

Replacements (midrange/upscale)

Roofing - 72.5% / 69.2%
Vinyl Siding - 82.6% / 84% ***
Fiber Cement Siding - --/ 91% ***
Vinyl Window - 79.4% / 82.4% ***
Wood Window - 78.9% / 77.5% ***


*** A quick note on these items. In older homes, particularly in Atlanta's intown neighborhoods where the historic character of the homes are highly valued and sought after, I would NEVER recommend replacing the original doors and windows if you can help it. If they must be replaced, make sure to use high-quality solid wood options that mimic the original detailing as closely as possible. Similarly, while vinyl siding is inexpensive and very low-maintenance, it will actually DECREASE your home's value in these areas. If siding must be replaced, fiber cement siding (often called Hardi Plank) is only marginally more expensive than vinyl but it gives the appearance of traditional wood siding. In more suburban areas where the homes have been built in the last 20 years you will start to see a greater return for using vinyl windows & siding, but in most cases in metro Atlanta it is always smarter to go with wood.


Why Renovation Pays

Why are renovations holding their value better than home prices today? "When housing slows down, people stay put and renovate their house to make it more livable," says Paul Zuch, president of Capital Improvements, a designing, building, and remodeling company in Dallas. And by renovating before they sell, home owners get to enjoy the new space themselves, not just make the home more appealing to buyers. "It just makes sense," says Zuch.

Recent renovations also make buyers’ lives easier. "Home owners who remodel their home are providing a service to future buyers," says Eileen Nelis, a broker at Savvy and Co. in Charlotte, N.C. "When buyers purchase, they don’t want to do all that painting and remodeling, and they don’t want that price tag. They may be willing to make improvements down the line, but when they purchase, they want to open the door and have everything complete. It reduces their stress."

Making home improvements can also reduce sellers’ stress by heading off that time-honored negotiating technique—pecking away at the sales price by pointing out imperfections. "If sellers have done some improvements and dressed up their property, the improvements will help sell it," says Bernard Fallon, broker at Fallon Associates Realty in Rochester, N.Y. "If sellers don’t want to improve their property, buyers will tick off the repairs and try to take them off the price."

That doesn’t mean that every home owner should do every renovation, even in a more stable real estate market. Take Tulsa, Okla., where median home prices actually edged up slightly more than 2 percent in 2008, according to NAR. REALTORS® in Tulsa reported that, of the 30 remodeling projects surveyed, only 16 netted home owners at least 80 percent of the cost.

"Not every neighborhood will support the additional work," says Jim Hemphill, a sales associate at Coldwell Banker Select in Tulsa, "but in older, more established neighborhoods, if you redo a kitchen or bathroom or add a master bath or bedroom, you’ll get your money out."

Despite the value, the weak economy is likely to slow seller spending on remodeling, at least in the short term, predicts the most recent Leading Indicator of Remodeling Activity computed by the Joint Center for Housing Studies at Harvard University.

The LIRA for the third quarter of this year estimated that owners’ spending on home improvements will decline at an annual rate of 12 percent by the second quarter of 2009, continuing a two-year downward trend. Spending is unlikely to recover until the housing market turns around, according to the Center.

Yet, despite declines in overall remodeling dollars spent and a still shaky housing market, "people’s homes are still one of their best, most solid investments," notes Zuch. "Even though the markets have gone through some adjustments, it’s still smart to invest in your home."

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Monday, December 8, 2008

Financial Housekeeping Tips for the end-of-the-year

December can be one of the busiest times of the year. Between decorating for the holidays, shopping for the kids, traveling to see the relatives and enjoying the festivities, this month can fly by like no other. Taking just a few minutes to make sure your financial house is in order before the year wraps up is time very well spent. Here are a few simple suggestions to help you prioritize your financial housekeeping over the next few weeks:
  1. Review your Benefits. If your company holds "open enrollment" for benefits at this time of year, make sure you review all of the options available--as opposed to simply taking on the same choices as last year. This is especially important, if your spouse also receives benefits through an employer. That's because your situation or benefits may have changed over the year, and it may make more sense for you to switch coverage from one spouse's plan to the other's. And make sure that you take full advantage of pre-tax spending accounts, such as the ability to pay daycare and medical in pre-tax dollars! Pre-tax spending accounts are use-it or lose-it plans and many companies end their benefit plan year on December 31. Be sure to check with your plan provider.
  2. Asset Allocation. Year-end is an ideal time to open up your 401k statement to examine how your individual funds have performed. We all know that the financial markets have been up and down quite a bit over the past couple of months, so don't be too surprised if your accounts aren't progressing the way you might have hoped. But rather than get discouraged or simply ignore your accounts, take the time now to meet with your financial advisor and discuss if you should re-allocate from the better performing sectors back to the under-performers. This concept is called "asset allocation" and has been around for several decades. Its value cannot be overstated. Most financial planners believe that proper asset allocation can be one of the most important factors in your overall return. So take this year-end opportunity to review your plans with your financial planner to see what, if any, adjustments you should make.
  3. Automate your New Years Resolution. Many people make financial resolutions to save more or pay down debt. In today's economy, it's a safe bet more consumers than ever will be making those kinds of resolutions. The good news is that with online banking, it's never been easier to keep that resolution. Simply hop online to your financial institution's website. Chances are, with a few clicks of the mouse, you can establish an automated savings account that allows you to send a certain amount of money to a savings account on a regular basis. Most online banking websites also allow you to easily set up automatic payments to a loan or credit card. Automating your financial decisions dramatically increases the likelihood that you will follow through on your plan
  4. Ask Santa for a Budgeting Program. These days, we all seem to be on some kind of a budget. The problem is, most of us have trouble calculating where we're spending too much or even where all the money goes each month. That's where a budgeting program can come in handy... and this holiday season may be the best time to ask for one. Granted, opening a copy of Money or Quicken for your holiday present is probably not what you dreamed about as a child, but these types of budgeting and household finance programs may be the best gift you will receive this year. With a couple of hours work, you can download your various balances and accounts directly into these programs, and set them up to automatically update on a daily or weekly basis. Once you have a few months of transactions in these programs, they can quickly provide you a summary of what your real budget actually looks like. The results may surprise you!
  5. Analyze your Debt. Make sure you know what rates you are paying on all your outstanding debts. If you have trouble figuring this information out, just give me a call or send me an email. I can help you determine what rates are being paid and if your current overall debt structure makes sense. Working together, we may be able to make changes that will put more money in your wallet or help you achieve other important financial goals.
  6. Give. December is prime time for giving to charities, for both tax reasons as well as holiday spirit. For example, Toys for Tots is a great program that helps deliver toys to children for the holidays. Or, you can give to a local food shelf or soup kitchen that helps prepare meals for those who would not otherwise enjoy the holidays. Giving will put a glow in your heart this holiday season...and a glow in your wallet come mid-April.

By following these suggestions, you'll be better prepared for a happy New Year in 2009! If you have any questions about specific steps or need some help, please call or email any time. Have a great holiday season!

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10 Real Estate Myths Debunked

RISMEDIA, Oct. 29, 2008-

With mortgage meltdowns, plummeting home prices and soaring foreclosure rates constantly in the news, it’s no wonder people are wary of the housing market these days. But contrary to popular belief, things are not as dismal as they seem, according to Lawrence Yun, chief economist of the National Association of Realtors. Yun debunks 10 commonly held beliefs about the current housing market, and FrontDoor.com offers 10 related tips.

1. Peak-to-trough home price declines to date have been about 20%. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20%, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines.
TIP: If you’re selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says.
TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6% per year — much less than historical average returns for the stock market. Not true, especially with how the stock market is currently performing. Most buyers put less than 20% of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6% per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns — and losses. If price growth returns to historic norm, the price growth of 4% can easily turn into 20 to 30% rate of return if the home buyer makes a down payment of 10 or 20%.
TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market.
TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It’s conceivable that taxpayers may have to cover some losses. It’s also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up.
TIP: Uncle Sam is “bailing out” homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed’s activities influence mortgage rates but don’t directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5%, and then cut it deeply to around 2%. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5% range.
TIP: Today’s rates don’t look bad compared to the 10% we saw in the early ’90s and 17% in the ’80s.

7. It’s the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation.
TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It’s the right time for everyone to buy. Not neccessarily. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one’s interest, Yun adds.
TIP: Take a good hard look at your financial status and create a homeowner’s budget to see if you’re ready to buy a home.

9. It’s a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck.
TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20% in the late 1980s to about 12% today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional.
TIP: You don’t have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.
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Are rates dropping to 4.5% ?

I have gotten a lot of questions about this in the past week after news came out that the Fed would buy mortgage debt at a rate that would allow lenders to offer buyers a 4.5% interest rate on a 30 year fixed rate mortgage. On December 4th, the Wall Street Journal reported:

The Treasury Department is considering a plan to revitalize the U.S. home market that would push down interest rates for loans to purchase a home, according to people familiar with the matter.

The plan, which is in the development stage, would temporarily use the clout of mortgage giants Fannie Mae and Freddie Mac to encourage banks to lend at rates as low as 4.5%, more than a full point lower than prevailing rates for standard 30-year fixed-rate mortgages.

Several people have asked me if now is the time to refinance. Here is the deal.... this was proposed by a lobbyist and at this point is simply that: a proposal. The lenders I have spoken with do not seem to think it will actually happen, but you never know! In the meantime, 30 year fixed rates are in the mid 5% range for people with top notch credit so if you are planning on being in your home for more than 2 years and your rate is higher (or you have an ARM that is about to end), it may make sense to refinance. If you want more information, let me know and I will be happy to put you in touch with one of the very capable lenders I work with. And don't worry, if the Fed does decide to move forward with this 4.5% plan, I will be sure to let you know!
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Friday, December 5, 2008

Agent of the Month.....AGAIN!

I just heard that I was awarded the November Agent of the Month award as well!!! Very exciting and a nice way to end the year! I couldn't have done it without all my fabulous clients, so a big THANK YOU to them!!!!
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Tuesday, December 2, 2008

Forbes Magazine Predicts Atlanta Housing Market Recovery to Begin in 2009

Posted by Carol M. Flammer, GAR
11/4/2008

Forbes Magazine made some good predictions for Atlanta homebuilders and residents last week. While other cities, like Las Vegas and Phoenix are expected to see home prices decrease by up to 50%, Atlanta is predicted to see significant increases as early as 2009. (This reiterates that NOW is the time to buy Atlanta Real Estate. Discounts on current new home inventory are available now. They won’t last forever!)

Although Forbes mentions the number of Atlanta foreclosures in early 2008, our continued steady job growth rate promises an end to our housing slump. In fact, next year home prices are expected to jump up by 32.5% for single family homes around the metro Atlanta area. Multi-family home prices are expected to rise by as much as 18.4% and job growth will remain around the steady 2% yearly increase that has kept Atlanta afloat and the envy of the nation. We are placed at number nine in the group of ten “lucky cities” that are predicted to experience long term recovery that will begin next year. So while times may seem tough now, if we can just hold out for a little while longer, things should be looking up for the economy and the Atlanta housing market once again!
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Monday, December 1, 2008

A VERY Happy Thanksgiving!!!!

Ok, I admit it, this is not real estate related, I won't even try to pretend that it is. I want to give a HUGE shout-out to my Georgia Tech Yellow Jackets for their huge win over U(sic)GA this past weekend!!!!! We have not beat them since I graduated from Tech, so this was a long time coming! It was especially sweet since U(sic)GA started the season ranked #1 and was still highly ranked when we beat them...and of course, we beat them between the hedges! Congrats to Coach Paul Johnson for winning the most important game of the season his very first year out.
GO JACKETS!!!!!!!
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