The Atlanta Journal and Constitution ran an article this week: How does your home stack up? It’s very well known that the Atlanta real estate market is soft. The AJC did a great job explaining and showing charts of the 2005 -2006 housing market pertaining to different zip codes. I receive calls and e-mails’ all the time asking me if it’s a good time to sell? There isn’t a simple answer anymore?

The AJC article supports the advice I’ve been giving prospective clients for a while now. It’s all about area and price. What I’m finding in the market right now as far as pricing goes is a seller has to be prepared to price a home for not much more than the home was worth in late 2005 or early 2006. So if you bought a home in the last 2 years your goal should be to just break even if possible. I know of very few homes or areas that have appreciated any noticeable amount since early 2006.

If a seller is willing to price a home with this in mind then they stand a very good chance of selling a home in a reasonable time frame. The Atlanta market isn’t dead by a long shot. I will personally sell more homes this year than last year! In most cases what you lose in selling is offset by what you will save when buying. How?? If you take a 5% reduction on a $300,000 ($15,000) home and you purchase a $600,000 home at 5% off ($30,000) then your net gain is $15,000. Right now I’m seeing the higher end homes taking even bigger discounts, especially if you want new construction. So if you’re moving up in price the time couldn’t be better to make the move.

As I been saying and the AJC showed the numbers are very different per location and home. For instance, the Vinings 30339 zip code experienced a 54% increase in sales, but the median home price dropped more than 30%. Smyrna’s 30082 had a median price increase of 15% (mainly due to new construction) but sales are off 5%. You can throw a rock and hit both of these areas but look how different the numbers are.

I’ve been telling client’s re-sale homes are great values for a long time now. It’s finally sinking in! But the biggest problem with many of the re-sale homes is neglected maintenance. This is compounding the real estate slow down as much as anything else. If you want to list your home in today’s market it has to be in move-in condition. With the recent changes in mortgage requirements and programs, buyers now need more cash to qualify. This means the buyer has less cash to do upgrades after a purchase. Sellers have to adapt to the market demands to sell a home. Fresh paint and carpet goes a long way right now with a buyer!

Many new home communities are taking huge discounts. But buyers need to beware. You have to make sure the builder has the financial means too not only finish your new home but to also finish out the subdivision. I’ve been in this business long enough to see wonderful new developments not being finished because the builder ended up bankrupting before the project was built out. I’ve seen numerous new defunct communities where a new builder/developer comes along (eventually) and they change the style and price range of the homes that was originally built, thus messing up the continuity needed for solid appreciation. You cannot have apples and oranges in the same neighborhood. There are several other things buyers need to be cautious of when buying new right now. Contact me if you’re thinking about buying a new home. I’m willing to discuss with you some of my concerns and knowledge as it’s different for each area and builder!

People are trying everything right now to sell homes. Buyers and agents are being offered free laptops, upgrades, vacations, TV’s, cars and cash. These types of spiffs just aren’t working overal. A professional real estate agent should always have his client’s best interest when guiding the way. Not what a free gift they will receive if they can sell a home!

Bottom line….Be sure the deal today isn’t a deal for someone else later!