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!