Sean Casey "The Intown Guy"

As a Realtor and owner of Kenny Cook Realty, 2007 was a year that presented many challenges to our business as it was for the real estate industry as a whole. Headlines of the mortgage meltdown, record foreclosure rates and increasingly restrictive lending markets forced us to re-think our approach to serving our clients on both the selling and the buying side.

Perhaps the largest challenge faced by our agents has been cutting through the perceptions of doom-and-gloom conveyed through news outlets and communicate to sellers and buyers that there are great opportunities in today’s real estate market and how they can best position themselves to benefit. All real estate is local, and the newly released AJC Home Sales Report confirms the general health of the Kirkwood and East Lake real estate market and that of the immediate area.

The report (available athttp:// www.ajchomefinder.com) shows that the strongest sector is new home sales. While the median price of new homes in the area fell slightly by 2.3% over the year, new home volume more than doubled from forty-one units in 2006 to ninety-two units in 2007 marking a 124% year-over-year increase in the number of new homes sold in the area. After years of consistent price gains, I view this slight drop in new home sales prices as nothing more than an slight correction and the dramatic increase in volume as an indicator that demand for new homes continues to strengthen.

While prices of new homes prices dipped somewhat, the average price of resale homes experienced a nearly 11% gain. While the overall volume of resales fell 17%, the pricing has strengthened dramatically. When considering that the total sold units (both new and resale) remained consistent year-to-year (464 units in 2006 and 441 in 2007, I feel that the slight decline (less than 5% in total unit sales) can be explained by sellers choosing to stay in their current home, or having mortgage situations where they are unable to sell may explain the lions share of the dip in volume.

These numbers stand in stark contrast to many other markets in the metro area where double and even triple digit decreases in price and volume were the unfortunate norm for the previous year. While the pain at the pump is pinching all of our wallets, the increasing cost and time of commutes is causing many in Atlanta’s suburbs and exurbs to seriously consider intown living that is closer to work centers and entertainment. - Tue Jul 1 2008, 13:11

Once again, Toomer's CRCT scores are looking good. The AJC posted the numbers online Monday. I haven't had a chance to really dissect everything(I only looked at 1st, 3rd and 5th grades), but here are the highlights...

Reading scores for third and fifth graders are fantastic. 100% of students met or exceeded expectations. That didn't happen at Morningside, Mary Lin, Neighborhood Charter School, or ANY of the city of Decatur schools. Plus, 64% of third graders and 35% of fifth graders exceeded expectations. First grade numbers aren't as strong (80% met, 33% exceeded); but I see that as demonstrating that Toomer is doing a great job narrowing the achievement gap.

Only Morningside fifth graders had higher math scores than Toomer (of the schools I looked at, of course). 81% of Toomer fifth graders met expectations, 35% exceeded them. Compare that to 74% met/13% exceeded at Mary Lin and 75% met/20% exceeded at Glenwood Academy (Decatur's 4th/5th grade school). (Note that the math scores across the state took a hit because of exam changes this year.) Third grade numbers are respectable, but not as strong relative to the comparison schools (75% met/21% exceeded). Ditto for first grade (87% met/40% exceeded).

The progress that Toomer has made over the past few years is nothing short of remarkable. Goes to show you what a strong administration, good teachers, and involved parents/community members can do. - Mon Jun 30 2008, 13:38

Murray,

I have sold 8 homes on your street. As Kirkwood's top listing agent, I would be more than happy to meet with you and share my marketing plan- no strings attached. You did not state whether you were working with an agent or not- if you are going it on your own you are welcome to integrate ANY of the ideas in my marketing strategy for your own use.

However, many of the more effective components I incorporate into my sales strategy have been developed over time and are not easily reproducable or scalable/cost effective for a FSBO scenario. According to FMLS data, of the 100+ homes currently listed in Kirkwood, there were 13 homes that sold between May 1st and June 1st. I would love to talk with you about how we can work to make yours one of those 13 SOLD homes in the coming month! - Wed Jun 11 2008, 07:21

Ba,

I would definitely suggest that your buyer have thier own inspection. In slow market, many home sellers are providing home inspection reports as a way to ease any fears potential buyers may have related to undisclosed or latent defects. This is a great tool for your buyers to have an increased level of insight into the overall condition of the property, and also to craft your offer accordingly.

On the flip side, unless indicated in the initial offer, I would not expect alot of lattitude on the inspection because the information was made available prior to your offer being submitted. As such, the seller is expecting that you will have considered any shortcommings in the offer. DO anticipate several items that your inspector may discover that do not match the seller provided inspection, and I would say it is fair game to ask for those items to be corrected if it is in your clients interest. - Mon Jun 9 2008, 12:14

Marcus,

First, congratulations on the decision to buy a home regaurdless of your decision on localle! I suggest beginning the process with your end-game in mind and not change objectives mid-stream. Whether you are purchasing a home to renovate and re-sell or as a rental my suggestion would be to do it under the protection of a Limited Liability Corporation (LLC). The difference between these two strategies are cash generation or building equity/appreciation...they are very different. You will almost certainly need to provide a personal gaurantee as a member of the LLC on any loan you obtain for the purchase and renovation of the property, but the title will be held by the LLC and not your personaly name.

As a new investor I know your budget is likely of cheif concern, but I would encourage you to focus as much on value as price. Ask your real estate professional to provide you with ARV comps on the finished properties, consider your margin first (most investors like to see a 20-25% margin), subtract your renovation and acquisition costs and go for the one that gives you the most bang for the buck.

For Example:
Estimated ARV: $210,000
20% Profit: -$42.0000
Purchase price: -$115,000
Equals Total Project Budget: $53,000*

*This means your renovation budget, carrying costs, commissions, etc. must total less than this amount.

I work with a number of investors and renators and would be happy to be of service if you need more in-depth assistance. Feel free to give me a ring or shoot me an e-mail at your convenience. - Tue May 20 2008, 05:49