I have to Practice what I Preach

It is easy to give advice to clients, friends, and family when it does not directly affect you.
In this situation I had to practice what I preached.

My family has owned a condo in Florida for over five years. We bought this condo to enjoy with our family not as an investment.

Then the housing market collapsed. The result: The market value of the property went down by 53%

After three attempts at a short sale, loan modifications, and refinancing, we were at a crossroads. Do we continue to put money into the property or cut our losses and move on?

It is easy to tell your clients to cut their losses, take money to closing, and move on. It is easy to tell your clients to run spreadsheets, do a cost anaylsis, and see if the property will return a positive investment.


Now it was time for me to take my own advice. I ran the spreadsheets, did the cost analysis, and conferred with my financial planner, and accountant. The answer was the same: Sell the property, take the loss, and move on!

I did not like the answer. I spent countless hours rationalizing why I should keep the condo. We enjoyed it, the beach was wonderful, and it gave us a chance to relax. Unfortunately those are not raitonal reasons.

I will be closing on the sale of the condo by the end of the year. The monetary loss is going to hurt and hurt badly. But in the long run it was the only solution.

The next time I give advice about losing money on the sale of a home it will come from the voice of experience.

They Took the Doors

This market continues to amaze us. It forces people into irrational behavior. Take the case of the latest home to go into foreclosure in my neighborhood. The home had been for sale approximately two years. A custom built home with upgraded appliances, light fixtures, and a pair of handmade antique front doors.

Needless to say the home was advertised for foreclosure at the beginning of December. Our team put a short sale offer on the home two weeks before it was to go into foreclosure. At that point the "owners" had taken the appliances, and changed out the light fixtures. We pressed ahead with the short sale offer despite the changes they had made.

Then they came back to us and said that they were taking the doors! What do you mean they are taking the doors! The same doors that they had advertised for two years as part of the home had suddenly become a "wedding present". The sellers had now laid claim to the doors.

After some tense negotiations the sellers agreed to leave the doors with the home. However after all that work the lender declined our short sale offer. The home was then foreclosed on the following. It happened on a Tuesday. I bet you will never guess what happened Tuesday night? Yes you guessed it. The doors disappeared. They were replaced by two standard metal doors.

My question to all of you is this: When you build, or buy a home, do you buy the doors, light fixtures, and appliances for cash and place them in the house or are they paid for by the mortgage? I will bet that all of the items are part of the mortgage. If the lender paid for all of these items then why do sellers feel it is their right to take these items out of the home?

Has this housing market killed our integrity?

Water Levels at lake Lanier

For all of us "locals", we are all very familiar with Lake Lanier and its ever changing water levels.

As of today Lake Lanier was down over 14 feet!

What does that have to do with a real estate agent who sells Lake Lanier property? I think you know the answer.

We had been working with a client for over six months. We had showed them Lake Lanier property and knew their desire to live in our area. We were waiting for them to sell their Florida home.

You probably know how this turned out. Our clients had sold their Florida home however I did not hear from them. I made the phone call that I dread making. When they answered the phone they apologized for not keeping in touch but they were going to buy a home at Lake Oconee!

Regardless of the outcome we always take the high road. We wished them the best of luck.

They are moving to an area that is double the distance from their grandchildren in Atlanta. They are moving to an area that is more rural with less to do. But they were moving to a lake where the water level stays constant.

Lake Oconee is run by a power company. They keep the level constant. Lake Lanier is run by the Army Corp of Engineers.

The priorities of Lake Lanier are flood control, water supply for Atlanta, enforcement of the Endangered Species Act, among the many. Boating, recreation, and real estate are at the bottom.

As residents of the lake, boat owners, and real estate agents, we always knew the priorities. However this does not make the situation any easier.

As we continue to have water wars with Alabama and Florida over the lake, have a growing population, and put more strains on the infrastructure, we will continue to see this situation every other year.

An unfortunate situation that is caught up in local and national politics. The solutions are attainable but they need to be implemented not discussed.

Until them we will keep losing customers.

When Do I File the Deed?

After six years I still learn something new everyday!

I have a client who is buying a home from a seller who purchased the home on the courthouse steps. The seller, with his investment group, paid cash for the property.

As we finalized the agreement with the seller we did negotiate with one disadvantage. We did not know what the seller paid for the home. Why? Because the seller had not filed the deed with the county!

After we finalized the agreement I brought up this point with the seller. The seller waited to file the deed because he did not want any potential buyers to know how much he paid for the home.

This seller has purchased numerous foreclosure homes in the North Atlanta area. After he purchases a home he does what he feels is needed to ready the home for sale. Obviously repairs and upgrades cost money and are taken in account when he prices the home.

The problem in the past is that potential buyers look up the home on the tax records, see what the seller paid for the home, and offer a slightly higher amount. There is no regard for repairs or upgrades made to the home. In many cases he has been offered $5000 to $10,000 more than what he paid for a property!

So this seller holds the deed as long as he can.

Of course once our deal is finalized the deed needs to be filed. If it is not filed the lender will not approve the deal and the lawyer cannot do a credible title search.

An interesting strategy in this crazy market!

Top Trends from The Norton Agency

We had the opportunity to attend The Norton Agency Advanced Seminar last week. Our President, Frank Norton Jr, gave us a lot of statistics, information, and trends for the national and local real estate market.



Top ten trends, for our area, as identified by The Norton Agency

Expect no upward swing (in regards to prices)
Foreclosures have run their course in Georgia
Lending is invisible (more lending alternatives)
Cash is piled up on the sidelines (folks in a holding pattern)
Value price is in
Healthcare sector is pumping
Agriculture is back (demand for small farms)
Function before glamour (in regards to a home)
Rampant uncertainity is paralyzing!
We are on the edge of a centennial investment opportunity!
With interest rates being the lowest since 1930, owning a home being cheaper than renting, and low pricing, this could very easily be the best opportunity we will have in our lifetime! Take advantage of it!

Frustration with Appraisals!

I know every agent in this country is feeling the same pain that I feel when it comes to appraisals!

At my weekly Rotary Club meeting I had a friend share his frustration. He recently had his home appraised for refinancing.

His frustration was in the fact that, in his opinion, the appraiser had no idea about the details of the home. When my friend had his home built he spared no expense. Extra insulation, upgraded hardwoods, top of the line fixtures, counter-tops, and extra energy efficiencies throughout.

In a normal market all of these upgrades would weigh on the price of the home. In this market all bets are off!

I told my friend that my home was appraised for $50,000 less than I paid for it in 2001! I have put in a new Kitchen, new Master Bathroom, and screened in the porch! My reward? $50,000 in lower value!

What I saw on my appraisal is that a home is rated excellent, good, fair, or poor. A higher rating is the most you can expect and I do not know how much that adds or subtracts to the value of the home.

Bottom line: I told my friend that I agree with him. Until the appraisers take more factors into account when appraising a home, our values will stay the same

Extension of HUD Property Flipping Exemption

A couple of points:

The FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2011


To use an FHA loan on a home that is being flipped: All transactions must be an arms-length transaction. The home cannot have a pattern of previous flipping activity as evidenced by multiple title transfers within the last 12 months. The property must be marketed open and fairly. If the property is being sold for more than 20% of what the seller purchased the home then an appraisal must be done. Also an inspection must be performed.


If you have a client buying or selling a foreclosure property a knowledge of this directive will help especially if an FHA mortgage is involved.

Check with your lender to verify the current rule changes.

Overall this will give you some additional options with FHA financing.

(HUD Docket No. FR-5397-N-03)

A Wasteful Effort

This recently happened to a friend of mine in the Atlanta area.

A large lending institution advertised that they would be in Atlanta to assist people in modifying, or refinancing, their existing mortgages. Part of this program was a result of the new initiatives passed at the White House.

My friend went online to make an appointment to meet with the lender. No appointments were available. My friend then went to downtown Atlanta on the day of the event to wait in line for three hours! After a long wait my friend finally met with a lender representative. This was one of approximately 7000 such meetings that would take place in one day! As my friend met with the representative, the representative said that they had only approved 3 modification/refinance request all day! A TOTAL OF 3!

Needless to say that my friend was not approved for any help even with a large decrease in home value plus a loss of employment!

After 7 total hours of wasted time my friend received a $10 dollar gift card and had their parking ticket validated!

Based on these results I do not feel very optimistic about this housing market and the chance that the foreclosure mess can be cleaned up!

Trying to Change the Closing Date

Your buyer is anxious to move up the closing. The lender says that they are ready, the buyer is ready, BUT: This is a short sale or a foreclosure!

What does that mean?

It means that the lender has to approve the HUD 48 hours prior to closing. It means having the HUD perfect. It means waiting for the title to arrive, via courier, to the attorney.

When The Wells Team works with a buyer or seller in this situation we become a second set of attorneys. We check on the status of financing, liens, paperwork from the selling institution, paperwork from the buyer's lender, review of bank addendums, inspections, appraisals, surveys and much more.

Bottom line: There are a lot of moving parts that go into a closing. Foreclosures and/or Short Sales make them that more complicated.

The Wells Team prides themselves on keeping up with their clients closing to the point that we also need law degrees!

When you buy or sell a property, especially a short sale or foreclosure, keep in constant contact with your real estate agent. Also realize that there a lot of moving parts to a closing. Trying to change the date can be done but only if everything comes together perfectly.

The key to a successful closing is keeping to a closing date, keeping in constant contact with your realtor, the closing attorney,and your lender.

A lot of work but well worth it at the end!

Relationships Still Work

We were approached by a company offering an internet lead capture system.

I know that they are great systems but The Wells Team obtains their business the old fashioned way: Personal Realtionships.

We are going to have a successful year despite the tough real estate market. The majority of our business is from personal relationships.

The Wells Team has made it a point to be active in the local community, participate in local organizations, and donate to local groups that need assistance.

I realize this is very basic but, after six years in the business, relationships remain a fundamental part of our success.

A simple concept.

The Norton Agency Has a New App

The Norton Agency is a local company with its dominant presence in North Georgia. Even though we are local, our company keeps up with the latest technology.

If you go the website below, you will be able to download an app that features The Norton Agency. The app will take you to our website where you can search the latest residential and commercial properties available. You will also see the additional services the company provides including property management, Homeworks, insurance, and our affiliations with closing attorneys and title companies.

http://www.wdun.com/accesswdunapp/

The Norton Agency: Local knowledge with both a national and international presence.

The Presidents Job Speech Thursday Night

The Presidents Job Speech Thursday Night

Communications, Still a Real Estate Basic

Yes communications is still a basic in the real estate world!

This is another lesson learned from dealing directly with clients.

Our sellers had asked us to lower the price of their home. Months later we received our FIRST offer! After submitting this offer to our seller we were met with a less than enthusiastic response! Our seller was not coming down off of his price! Matter of fact he had a change of strategy and would be taking the home off of the market!

This was a big breakdown in communications!

Lesson learned: Before I make any changes to any of our listings, at the request of the seller, I will make sure that there is a clear understanding of the ramifications!

6 months worth of work gone!

Do you really want a foreclosure?

We have been busy the last week with multiple buyers looking for the "deal"!

This group of buyers are looking in two upper end neighborhoods that include golf and boating.

We took these potential buyers into foreclosures, short sales, and traditional resales.

Here is what we found:

•Some clients want a home because it says foreclosure or short sale regardless
•Some of our clients looked at foreclosure homes with "resale criteria". They did not like the floor plan, color of paint, carpet, or overall condition
•Some of our clients looked at the foreclosures differently once they actually enter the home. The home looked a lot different than it did on the Internet


Here are some questions that we ask our clients:

•Are you ready to tackle a foreclosure in terms of time, sweat equity, and cash?
•Does it make more sense to pay a higher price for the "move in quality" resale or pay cash later for repairs and remodeling that you want to do on a foreclosure?
I bring up these points because we have some move in ready resales that are within $40,000 of some foreclosure property.

Last week we saw 30 year fixed rate mortgages at 4%. $40,000 more in the price of a home equates to approximately $190.96 per month.

Foreclosure or resale, a question worth pondering.

Barb and I have sold approximately 20 foreclosures and short sales. If we can help you please let us know.

FHA Lowers Loan Limits

I just received some information about FHA loans. This will have an effect on some of my clients. Overall this is still a great program with 3% required downpayment. 3% down in combination with low interest rates (3.75% last week) makes this is a great product.

Here is the breakdown for the North Atlanta Metro area effective September 1st

FHA has lowered the maximum loan amount from $346,250 to $320,850 in Metro Atlanta counties (includes Forsyth and Dawson)

HallCounty remains at $271,050 max loan amount

The Wells Team has a list of lenders that we have worked with in the past. If you would like a name please let us know.

QR Codes The New Technology

Another new technology! At least for me it is new!

The QR (Quick Response) code resembles a bar code. It was created by Denso Wave, of Japan, in 1994 and has been a popular item in Asia.

The company that does all of our virtual tours, Obeo, has introduced these QR codes on all of our virtual tours. All we have to do is save the QR code as a jpeg file and then paste on our flyers. It is that sample. When a buyer pulls a flyer they scan the QR code with their mobile phone and they are immediately connected the internet and that particular website. Another great source of inquiries!

As for the software: I did not think I could download any software on my cell phone because I have an older model. No problem. Go to the following website: http://www.mobile-barcodes.com/qr-code-software/ On this website I was able to find the correct software and download it on my phone (remember you have to have internet access on your phone to use this product).

Now just open the software on your phone point to the QR code using your camera. The software will scan the QR code and open up that site on the internet.

Love them or hate them QR codes are new wave of technology that is here to stay

At The Wells Team we are constantly trying to provide our clients with the best technology

Invest in America- A Campaign from The Norton Agency

We are at an interesting and somewhat frightening era in America. The stock market and world markets change daily and we watch our 401K’s and investments vacillate. With all this in mind, The Norton Agency has launched its new mantra – INVEST IN AMERICA – BUY REAL ESTATE. Despite the down turn in the real estate market over the past four years, it is still one of the best ways to invest your money. Interest rates are at an all time low – 3.75% for FHA and VA and as low as 3.5% for a 15 year Conventional.

We are seeing prices stabilize although there are still many short sales and foreclosures occurring. We are also hearing about more owner financing since many buyers cannot qualify for more traditional loans and seller’s receive a lot more interest than they would with CD’s or money market accounts.

The Wells Team is prepared to help both buyers and sellers make the most of the ever changing real estate market. We keep up with the latest trends, watch the daily interest rates, and change our business to reflect the most up to date real estate marketing strategies’.

Real estate is the truly buying American. Unlike automobiles, appliances and clothing, real estate is American timber, American insulation, American concrete, and American dry wall. We can make the American dream a reality. INVEST IN AMERICA - BUY REAL ESTATE!

Time to Throw in the Towel

This is something all Realtors dread doing: Throwing in the towel! In this case it involved friends/clients of mine who had their home listed with me.

The home appeared to be priced correctly but as time went on that did not appear to be the case. We watched other houses around them go for lower prices. My clients grew more frustrated because buyers would not appreciate all of the extras that were put into the home. (does any buyer appreciate this)

After four months of multiple showings (the most we have ever had), plus two offers that did not work out, my sellers said they had enough. They withdrew their listing.

My opinion on the whole situation: Buyers cannot expect to regain all of the money they spent on upgrades to their home. That has become an unfortunate situation in this market. If you receive feedback about the pricing of your home and you see other homes sell around you for less, it is time to get aggressive or throw in the towel.

My clients decided to throw in the towel. They did not have to sell and will continue to live in the home until the market changes. If and when the market actually changes.

There are times when it is not meant to be.....

Now This is What I Call Service

I admit it. I have another career besides real estate. Yes I have been an airline pilot for 20 years. I have been in real estate for 6 years. This was a chance to combine the two and give incredible service to a client.

The night my clients were leaving for a two week vacation to England I received an offer on their home. Figures! They really wanted to enjoy their vacation and not endure the stress of constant emails, counteroffers, and the other joys of negotiating.

Instead I happened to be flying to London on a scheduled trip for the airline.

Contract in hand I boarded the "tube" (London subway), met my clients at their hotel, and proceeded to have dinner with them.

After finishing a wonderful Indian meal we pulled out the contracts and went to work.A couple of changes made, contracts signed, and I was on my way home.

I presented the contracts to the buyers agent upon my arrival home. It looked good

However...

My clients had made enough changes that the buyers changed their mind, terminated the contract, and started looking for other homes.

Next time I will ask Queen Elizabeth for her help...

I can honestly say one thing: You cannot offer better service then that!

Paint the Door

My wife does the marketing for The Wells Team. One of her "things" is to have the door painted on a home when we list it. I have to admit that I never thought it was a necessity in many cases but I have been proved wrong.

Our highest priced listing had a showing last week. This home has been upgraded inside and out and has captured a lot of serious inquiries.

However last week I received some feedback from a recent showing. The agent said that the door was in bad shape and appeared worn. It gave a bad initial impression and subsequently lost the interest of these potential buyers.

A small point but one that had big ramifications.

When buyers are looking at multiple homes in a day a good first impression is crucial.

Painting that door might help!

I Had to Stop the Bleeding

I have been "preaching" that at times you have to cut your losses and move on when it comes to real estate.

Unfortunately I had to listen to my own advice.

After meeting with my financial planner I decided that I had to take the hit and sell my condo in Florida. From an emotional standpoint it was very difficult, from a financial standpoint it was an even harder decision.

I will be going to closing with cash. That is a very tough pill to swallow.

However my financial planner showed me the situation from a different perspective. The condo would have to appreciate 6% a year just to cover the cost of running the property! That does not even include the property actually going up in value!

If you find yourself in a similar situation meet with a financial professional. Have them show you the numbers, and formulate a long term plan.

This is going to hurt in the short term but in three years I will be ahead of the game.

When Your Seller Tries to Sell Your Home

Quick True Story:The year was 1990, the location Southern New Jersey, I had to sell my home, and the real estate market was bad!

I received a call for a showing. I cleaned the home to the level of an operating room. I was ready. The agent showed with her buyers. They spent a little time walking around and were ready to leave. I met them out front of the home to give them my "sales pitch". I told them about the home and how the neighborhood was great for a family. My sales pitch was so good I could envision the offer.

The agent took me aside and made two comments: "Your home smells like Clorox and my clients do not have kids and are not interested in starting a family".

I was devastated. The next day the agent called me and bluntly asked me: "Do you want to sell your home. If so I can do it but I will do it my way". I mumbled yes ma'am, listed the home with her, and sold it a few months later for a slight loss.

That was 20 years ago.

My partner and I have been selling for 7 years now. We were #2 of 135 agents company wide for 2010. I can say with confidence that we know how to sell a home.

What I have learned from my clients about interaction with the actual sellers:

•Having the sellers in the home makes potential buyers very uncomfortable. They are hesitant to "dig" further into the home as they look. They spend less time because they feel that they are imposing.
•If the buyer wants to make an offer on a home they do not want to meet or see the seller. That adds personalities into the offer phase which makes buyers react differently.
•When a seller talks to the potential buyer at the end of looking at the home, the buyer again feels uncomfortable. Some tell me that the seller appears emotionally attached to the home and at times can appear desperate.
•The buyer has many homes to see that day. If the seller ties them up for an additional 30 minutes they fall behind schedule.
I realize that our sellers know everything about their home, the neighborhood, and the local area. However when The Wells Team list the home we also learn everything we can about the home also.

Our follow up with a potential buyers agent is always thorough. We take the time to point out the attributes to the buyers agent in order to foster interest.

Bottom Line: The home sells itself! If the potential buyer has interest then the agent will contact us. A "hard sell" from our sellers has not proved to be an advantage.

Home Warranties are Great but...

When other real estate companies need to cut back services because of the slow market, The Norton Agency is heading in the other direction.

One of the additional services we provide for our listing clients is a warranty from Old Republic Home Protection.

This warranty gives our home sellers a piece of mind during the listing period.

Barb and I usually negotiate a one year warranty when we assist in the purchase of a home for our clients.

We believe in them so much Barb and I have purchased ones for our own personal homes.

Recently I had to use my warranty when my hot water heater decided to move onto the next life. What I learned is that I need to thoroughly read my warranty before I use it. Ultimately I had to pay out of pocket cost for the installation of the hot water heater. This was a cost that I did not expect. If I had purchased an additional warranty coverage program I would not have had to pay the additional cost.

Bottom line: Warranties are good but...READ ALL OF THE TERMS OF YOUR WARRANTY BEFORE YOU USE IT!

This rule of thumb is for all warranties regardless of the company.

Barb, Sue, and I are The Wells Team of The Norton Agency. Our company is proud of our relationship with Old Republic Warranties and the service they provide for our listings.

If you are looking for property in the North Atlanta Metro area give us a call. You can see all of our listings at www.randywellsteam.com

Can I Cut My Losses?

Years ago I received some advice from my financial planner. He told me that it is human nature for investors to hesitate selling their stock when the price is going down. They want to wait for the stock to return to its original value and then sell for a profit. It is hard to part with a loser.

The same psychology also affects homeowners as they look at the declining value of their home.

They have equity in their home even though it has decreased. They look at the amount of time it would take to see their home price come back to its original price, reassess their time frame, and see if the smaller amount of current equity can be invested differently to recoup their investment.

For some they see that they have to sell their "loser" and move on.

It is a hard choice but a choice worth evaluating.

Have your clients ask themselves the following questions:

How long do they think it will take for the market to recover?
Can I recover my equity loss on my home faster by selling and investing the equity elsewhere?
Can I sell my home, take the loss, and buy a lesser expensive home?
Is there a better use for my money?
Do I have the patience, and the time, to watch my home start to increase again in value?
What is my personal "life" situation?


Our home is the biggest investment we will ever make. It is hard to see it lose value. It becomes a helpless feeling as this home market continues to decline. When will it end and what our my options?

Sometimes it is better to "cut our losses" and move on.

Atlanta Metro Area Market Update from The Wells Team

Our President Frank Norton Jr gave us a very informative presentation on the housing market at our monthly sales meeting. Barb and I pride ourselves on the knowledge we gain working for The Norton Agency. This knowledge allows us to better serve our clients.



Here are some of the highlights:



•· From 2000 to 2011 Real Estate outperformed the Dow, Nasdaq, and the S&P

•· Pending home sales declined after April 2010 because of the expiration of the first time homebuyer tax credit. However since October 2010 to the present pending home sales have been rising

•· The Norton Agency has seen an 8% increase in January-February sales over this time last year

•· Home price Expectation Survey shows that prices are anticipated to start upward later this year

•· Mortgage rate projections are predicted to increase this year

•· Consumer confidence has increased

•· Months of supply for housing in the Atlanta area are a direct result of housing prices. From a 7.5 month supply of homes under $120,000 to a 30.8 month supply for homes priced over $750,000

•· Average closing price of homes, including foreclosures were up slightly from 4Q 2009 to 4Q 2010

•· New Home construction continues to decline

•· The Atlanta area has an oversupply of vacant lots with no building planned

•· The Atlanta area is #5 in the country for resale home inventories available. South Florida is #1

•· We are #10 for new housing inventories in the country

•· The Atlanta area is #1 for vacant lots in the country!





What are Barb and I seeing?



We are seeing a lot of activity on the internet. Our listings, according to our weekly reports, receive a lot of interest. The interest is higher on our Cobb County and Atlanta listings compared to our Dawson County listings. That activity is directly related to amount of showings that we have had on all of our listings. Cobb County and Atlanta have had the most showings compared to our Dawson and Hall County properties. That being said a lot of showings have not produced any offers. The buyers appear to be very reluctant to place an offer, any offer, on a home. They still second guess themselves and are looking for the perfect home, at a price, that does not exist. As the home inventory available for sale continues to decrease these buyers need to be a little more realistic. They need to realize that they can buy homes at such a great price that they can see through some of the perceived imperfections that the house might have.



Mortgage rates were at 4.8% last week for a 30 year mortgage. In Dawson County you can get an FHA loan up to $349,000!!!!An FHA loan requires 3.5% down payment only!!! The money is available if you qualify. This will not last forever.



Foreclosures continue to appear and have an effect on our neighborhood Chestatee. We see another 4 or 5 advertised that will eventually appear on the market. Their effect is on the ability to get a fair price for your home listed with us. This effect will be with us at least through the end of 2011. Overall our listings are priced well. The trick is getting the buyers to realize what a great opportunity they have to live in a resort neighborhood at a low price!



If you are considering buying or listing your home let The Wells Team assist you. We are not just real estate agents but real estate counselors. We have dealt with short sales, foreclosures, and auctions. We have access to names of contractors and mortgage specialist. The Norton Agency also has an insurance division that represents over 28 companies. They can provide home, auto, boat, and other insurance for your family.



We also place a home warranty on your home during the listing period!!!



Thank you for your business.

The Truth is Hard to Say!

This job will not get any easier.

We have a client who wanted a report on what to do the house in order to get it ready to sell. After walking around the home we came up with a list two pages long.

The home is only 6 years old and overall it is in good shape. However it is showing the normal wear and tear that any home goes through.

We were dealing with a lot exterior wood trim rot, faded paint, and the need for the interior ceilings and walls to be repainted (the home has been empty for two years).

On top of this the market in this neighborhood, where I live, has seen a decrease in values. We are starting with one hand tied behind our back.

I left the report on his Kitchen table because I was going to be unavailable on his arrival.

I have not heard back.

The job will not get any easier!

Talk to your Mortgage Pro First

Why?

Buyers cannot qualify for financing.

My partner Barb and I work hard fitting our buyers into the perfect home. There are opportunities that have to be taken advantage of quickly.

We ask that before you start your home search that you speak with a mortgage professional. There are a lot of great programs available but it takes a pro to find the best one for you. At the same time there might be some circumstances where a loan might not be in the picture for you at this time.

Please make this call before you start your home search. Then call The Wells Team if you are looking for a home in the Norton Atlanta Metro Area.

See all of our listings at www.randywellsteam.com

I am Tired of Solicitors

This is starting to happen me on a daily basis. I am busy, driiving in my car, spending time with my family or a client, working around my home, taking a real estate class, or just trying to relax.

Then the phone rings. I answer anticipating a new client, a listing inquiry, or an offer.

Instead: LET ME TELL YOU ABOUT THE KEYWORDS THAT WE HAVE RESERVED FOR YOU! WOULD YOU LIKE TO INCREASE YOUR CLIENT BASE? IS YOUR WEBSITE RECEIVING ENOUGH HITS?

I respond that my business is fine, our team was #2 out of 145 agents for 2010, and my website receives enough hits.

The script continues and I struggle to get a word in edgewise.

Finally I am able to say that I will give you five minutes. At the other end of the line I hear that they want 30 minutes in order to give me a full presentation.

I don't have 30 minutes. Frankly I dont have 5 minutes.

But the script continues.

I grow tired.

Finally I say this is not a good time. Can you email me the necessary information so I might have the time to review it at my leisure. Silence followed by a sullen voice at the other end. I have killed another potential sales for a hardworking sales rep.

Here is my comment: To all of you real estate solicitors. Talk a little slower when you call, listen, realize that we are also very busy, and be flexible about future conversations.

If you don't mind please don't call me for a while. My ear hurts and I am out of air time.

The Norton Agency Homes for Life Magazine to Increase!

The Norton Agency publishes The Norton Homes for Life Magazine. This publication showcases all of the properties listed by agents at The Norton Agency. This includes properties throughout North Georgia and the Atlanta Metro area!
The magazine is circulated in the Gainesville Times, Dawson County Times, and The Forsyth County Times. It is also circulated at local businesses. The circulation tops 10,000 copies.

Frank Norton Jr, the president of the company, announced that we will publish 12 issues a year instead of the current 6.

This is a further indication of our committment to our clients to market their homes as effectively as possible.

Keep your eyes open for our next publication.

The Foreclosures Are Killing My Neighborhood!

I have to admit that The Wells Team has benefited from the sale of foreclosure properties in the North Atlanta area!

At the same time my level of disappointment is increasing with respect to my own neighborhood.

I purchased my home in 2001. This was well before I entered the real estate industry, before the real estate boom and the real estate bubble.

The results: My home is worth less today based on the same model that sold down the street. It was a foreclosure!

We have 342 homes in our neighborhood. At this time there is only 1 active foreclosure but there are two being advertised for foreclosure, and another 3 or 4 personal situations that I know will result in the same.

Yes I admit I feel bad when I see the homes being advertised for sale. It is the result of a failed business, personal issues, or the loss of a job.

However I looked up 5 or 6 homes that I know are in, or will be in foreclosure soon. The numbers killed me! The average loan amount (usually multiple loans) was 122% of the sales price!

This is my personal opinion not the opinion of a real estate professional: My parents both grew up poor. They worked hard and ended up successful. They also saved their money and were cautious when it came to buying unwanted items. They lived within their means! They pushed work and most of all saving my money. What they emphasized to me was this: IF YOU CANNOT AFFORD DO NOT BUY IT! HAVE EMERGENCY MONEY SAVED JUST IN CASE!

As a country we keep trying to point fingers at who caused this housing mess. Again my opinion was bad financial choices and a certain amount of greed.

It will be a while before I will sell my home. Guess I will enjoy instead!

Zoning Debate in Forsyth County

Read an article in the Jan 30th AJC concerning Forsyth County and a debate on zoning.

Forsyth County reflects what many counties in Georgia, and nationwide, will be up against when they look at ways to bring in business to help their tax base. Many counties in North Georgia rely on residential for the majority of their property taxes. Forsyth County has quite a few businesses that add money to the tax rolls. However the county experienced a large influx of money as a result of the housing boom.

Now that new housing construction in Forsyth County, as well as, the entire Atlanta area continues to be flat Forsyth County is looking for commercial opportunities to contribute to the tax rolls.

The dilemma they find themselves in, according to the article, is whether to give variations to attract business investment.

According to the development watchdog group. Smart Growth Forsyth the answer is no. They worry that the county will increase the amount of zoning variations requested. That would lead to a further erosion of zoning standards.

This debate will take place in all of our counties. Stay informed, and involved, in your county. Eventually decisions like these could directly affect you, your quality of life, and potentially your home value

The AJC: A Thing of the Past

Like many of you I am an “addicted internet browser”. The internet has become my sources of knowledge and I know I am not the only one.

Last week my neighbor gave me her Sunday Atlanta Journal and Constitution. It took me a while to realize that it was a newspaper that you read. (It has been a while). I enjoyed the sounds of the paper crumbling as I turned pages, the feel of the paper in my hands, and the fact I could read it without being in a WiFi hotspot!

In the past the AJC Homefinder section was your source for all the Atlanta area real estate news. Homes for sale, mortgage data, open houses, vacation properties, all in one spot.

6 Pages! The entire section was down to 6 pages! At least I knew I would finish the entire section!

I am not picking on our local newspaper. The size of this once coveted section reinforces the fact that the internet is taking over more and more every day. I see it statistically by the number of “hits” I receive on various real estate websites including our own www.randywellsteam.com site.

One day in the very near future I will fondly tell my son about the “old days” when we use to read something called a newspaper. I am going to miss the sights, sounds, and even the smells of the news press. Time to make new memories with my laptop!

Do You Need a Termite Inspection in Georgia?

What is the word on a termite inspection in Georgia?

Everytime I attend a company real estate meeting I wonder why I am wasting my time. However my broker manages to surprise me each time by bringing in relevant speakers. This meeting was no exception.

We had a representative from Coppermine Pest Control who is also a member of GPCA (Georgia pest Control Authority). He talked to us on changes to the 2011 GAR Purchase and Sale Agreement with its references to a pest inspection.

According to 2005
• In 2005 HUD issued guidelines that said termite inspections were not required. Previous to that lenders required termite inspections in order to secure a loan.
• The HUD guideline was issued for every state in the country.
• Atlanta, and the state of Georgia, are each #2 for termites in the country!
• GPCA worked with the Georgia Legislature, and GAR, to have wording placed on Georgia Real Estate contracts.

Here are the results:

In the Purchase and Sale Agreement there is an option of providing the buyer with a GAR F13 entitled "Protect Yourself when Buying a Home”. It was produced by GAR to help buyers with the home buying process. One of the suggestions is to “Have the home inspected for termites and other wood destroying organisms and obtain an official Georgia Wood Infestation Report that can only be prepared by a licensed pest control company”.


The bottom line is this: It is not a requirement to have a home inspected for termites but it is strongly suggested. When you are #2 in the country for termites I think that makes your decision easier.

Highlights of the 2011 Norton Agency Annual Forecast

The 2011 Norton Annual Forecast marked the 24th year of this successful presentation. We had a full house at The Georgia Mountain Center where Frank Norton Jr. shared the 2011 trends.

They are:

1.Headed to Evolution not Recovery
2.Mythical Multiple Bottoms
3.The First Law of Cash
4.A Paradox of Ownership
5.The Million Dollar Dilemma
6.Medical Overtakes Poultry as #1 Industry
7.Out of the Ashes Rises the Phoenix
8.Phantom Real Estate
9.Our Holographic Government Collapses
10.To The Survivors Belong the Spoils
If you would like to read the details about these 10 trends along with an in depth summary of The Norton Georgia region let us know. We can email you a copy of the 2011 Norton Native Intelligence. Just go to our website wwww.randywellsteam.com and send us an email.

Barb and I are very proud to be associated with The Norton Agency. The information provided by Frank Norton Jr. strengthens our knowledge which in turn allows us to better serve our clients.

Check out The Wells Team of The Norton Agency at www.randywellsteam.com

Does a Georgia Real Estate Agent Have to Follow the Code of Ethics?

The Georgia Association of Realtors (GAR) has made some changes to our 2011 real estate contracts. One change I think is very interesting is the acknowledgement of being a local real estate board member.

I want to point this out to my friends, clients, and sphere who are not real estate agents.

On the bottom of our Purchase and Sale Agreement there is a blank to fill in your board membership. If you are not a member of a local Georgia board of realtors you leave the space blank.

What does that mean to you?

If an agent is not a member of a local Georgia Board of Realtors then they are also not a member of the National Association of Realtors.

Can they still practice real estate in Georgia if they are not board members? Yes they can. The state of Georgia does not require an agent to belong to a Georgia member board of realtors in order to practice their profession. They have to have a state of Georgia real estate license.

What does this mean to you?

If an agent does not belong to a board of realtors then they are not obligated to follow the Naitonal Association/Georgia Assocaiton of Realtors Code of Ethics.

The code of ethics gives us guidelines on how we represent our clients, how we interact with fellow realtors, and how we should conduct our business. My partner Barb and I make every effort to abide by these rules.

Unfortunately we have had issues with other agents who are not obligated to follow our code of ethics. Without getting into detail there was a noticeable difference in the lack of professionalism.

The next time you select an agent to help you buy or sell a home ask them if they are a member of a board of realtors.

Here is the link to the Georgia Association Board of Realtors Code of Ethics

http://www.garealtor.com/LinkClick.aspx?fileticket=RoNuhd4TAtY%3d&tabid=192

New Listing in a Great Atlanta School District!

Take a look at this newly renovated home by clicking on the virtual tour link


http://homesite.obeo.com/637714

The Norton Agency Annual Forecast is January 20th !

Please look at the invitation below. This is a great opportunity to see Frank Norton Jr. speak. Frank will give his insight on residential and commercial real estate, population growth, business growth, water issues, transportation issues, and other factors that will affect the North Georgia area.

If you have any questions please do not hesitate to contact Barb 404-642-1968 or Randy 770-313-5792.

To see our listings check out our website at www.randywellsteam.com

See you Thursday!