Selling Your Home - February 2019 by The Buckhead Office

F E B R U A R Y

THE BUCKHEAD OFFICE

2 0 1 9

LISTED BY: Pam Santiago

TABLE OF CONTENTS 10 Best-Kept Secrets for Selling Your Home What You Can Buy for $800K Market Update Whatâ&#x20AC;&#x2122;s Hot in Atlanta 2019 Outlook Luxury Leaders

F O R

10 SECRETS S E L L I N G

Y O U R

VIA HGTV

LISTED BY: Kelly Boudreau

H O M E

S E L L I N G S E C R E T #10: Pricing it right Find out what your home is worth, then shave 15 to 20 percent off the price. You’ll be stampeded by buyers with multiple bids — even in the worst markets — and they’ll bid up the price over what it’s worth. It takes real courage and most sellers just don’t want to risk it, but it’s the single best strategy to sell a home in today’s market.

S E L L I N G S E C R E T #9: Half- empt y closets Storage is something every buyer is looking for and can never have enough of. Take half the stuff out of your closets then neatly organize what’s left in there. Buyers will snoop, so be sure to keep all your closets and cabinets clean and tidy.

S E L L I N G S E C R E T #8: Light it up Maximize the light in your home. After location, good light is the one thing that every buyer cites that they want in a home. Take down the drapes, clean the windows, change the lampshades, increase the wattage of your light bulbs and cut the bushes outside to let in sunshine. Do what you have to do make your house bright and cheery – it will make it more sellable.

S E L L I N G S E C R E T #7: Play the agent field A secret sale killer is hiring the wrong broker. Make sure you have a broker who is totally informed. They must constantly monitor the multiple listing service (MLS), know what properties are going on the market and know the comps in your neighborhood.

S E L L I N G S E C R E T #6: Conceal the pets You might think a cuddly dog would warm the hearts of potential buyers, but you’d be wrong. Not everybody is a dog- or cat-lover. Buyers don’t want to walk in your home and see a bowl full of dog food, smell the kitty litter box or have tufts of pet hair stuck to their clothes. It will give buyers the impression that your house is not clean. If you’re planning an open house, schedule a day trip to a pet hotel for your furry friend.

S E L L I N G S E C R E T #5: Don’t over-upgrade Quick fixes before selling always pay off. Mammoth makeovers, not so much. You probably won’t get your money back if you do a huge improvement project before you put your house on the market. Instead, do updates that will pay off and get you top dollar. Get a new fresh coat of paint on the walls. Clean the curtains or go buy some inexpensive new ones. Replace door handles, cabinet hardware, make sure closet doors are on track, fix leaky faucets and clean the grout.

LISTED BY: Debbie Shay

LISTED BY: Michael Kriethe & Travis Reed

S E L L I N G S E C R E T #4: Take the home out of your house One of the most important things to do when selling your house is to de-personalize it. The more personal stuff in your house, the less potential buyers can imagine themselves living there. Get rid of a third of your stuff – put it in storage. This includes family photos, memorabilia collections and personal keepsakes. Consider hiring a home stager to maximize the full potential of your home. Staging simply means arranging your furniture to best showcase the floor plan and maximize the use of space.

S E L L I N G S E C R E T #3: The k itchen comes first You’re not actually selling your house, you’re selling your kitchen – that’s how important it is. The benefits of remodeling your kitchen are endless, and the best part of it is that you’ll probably get 85% of your money back. It may be a few thousand dollars to replace countertops where a buyer may knock $10,000 off the asking price if your kitchen looks dated. The fastest, most inexpensive kitchen updates include painting and new cabinet hardware. Use a neutral-color paint so you can present buyers with a blank canvas where they can start envisioning their own style. If you have a little money to spend, buy one fancy stainless steel appliance. Why one? Because when people see one high-end appliance they think all the rest are expensive too and it updates the kitchen.

B U Y I N G S E C R E T #2: Always be ready to show Your house needs to be “show-ready” at all times – you never know when your buyer is going to walk through the door. You have to be available whenever they want to come see the place and it has to be in tip-top shape. Don’t leave dishes in the sink, keep the dishwasher cleaned out, the bathrooms sparkling and make sure there are no dust bunnies in the corners. It’s a little inconvenient, but it will get your house sold.

B U Y I N G S E C R E T #1: The first impression is the only impression No matter how good the interior of your home looks, buyers have already judged your home before they walk through the door. You never have a second chance to make a first impression. It’s important to make people feel warm, welcome and safe as they approach the house. Spruce up your home’s exterior with inexpensive shrubs and brightly colored flowers. You can typically get a 100-percent return on the money you put into your home’s curb appeal. Entryways are also important. You use it as a utility space for your coat and keys. But, when you’re selling, make it welcoming by putting in a small bench, a vase of fresh-cut flowers or even some cookies.

LISTED BY: Erin Yabroudy

W H A T

Y O U

C A N

B U Y

FOR $800,000 404

PROPERTIES LISTED IN METRO ATLANTA

PROPERTIES LISTED IN BUCKHEAD

LISTED BY: Sister Hood

$899,000 169 17TH STREET NE 2 B E D S | 2 F U L L B AT H S | 1 H A L F B AT H

LISTED BY: Erin Yabroudy

LISTED BY: Sister Hood

$899,000 98 MONUMENT ROAD 3 B E D S | 3 F U L L B AT H S

$895,000 3 8 5 0 B R A N D Y S TAT I O N C O U R T S E 4 B E D S | 4 F U L L B AT H S | 1 H A L F B AT H

LISTED BY: Cotten Alston & Lesa Bell

LISTED BY: Kelly Boudreau

$865,000 2191 STEPHEN LONG DRIVE 4 B E D S | 4 F U L L B AT H S | 1 H A L F B AT H

$845,000 12 PAC E S W E S T D R I V E | U N I T #12 3 B E D S | 4 F U L L B AT H S

LISTED BY: Rebie Benedict

LISTED BY: Sara Ohmer

$839,000 1358 W WESLEY ROAD NW 4 B E D S | 2 F U L L B AT H S | 1 H A L F B AT H

$835,000 1807 PAC E S F E R RY CO U R T S E 3 B E D S | 3 F U L L B AT H S | 1 H A L F B AT H

LISTED BY: Kay Settle & David Chanaberry

LISTED BY: Cindy Gentry

$827,000 460 SALEM CHURCH ROAD 3 B E D S | 2 F U L L B AT H S | 1 H A L F B AT H

$825,000 1430 MOORES MILL ROAD 4 B E D S | 3 F U L L B AT H S | 1 H A L F B AT H

LISTED BY: Kelly Boudreau

LISTED BY: Kathy Olmstead & Price Curtis

MARKET UPDATE B Y

N E I G H B O R H O O D

ANSLEY PARK

H I S T. BROOK H AV E N

HOMES FOR SALE

NEW ON MARKET

$1,416,000

$1,496,824

AV E R AG E S A L E P R I C E

-14.3%

+34.1%

SALES PRICES

98.94%

99.30%

L I S T T O S A L E P R I C E R AT I O

72 AV E R A G E D AY S O N M A R K E T

112 AV E R A G E D AY S O N M A R K E T

HarryNorman.com Data pulled on Feb. 18, 2019 of last 30 days | Properties $500,000+ % sales price change based on changes from February 2018

BUCK HEAD

C H A S TA I N PARK

660

HOMES FOR SALE

174

NEW ON MARKET

$1,303,476

$1,813,300

AV E R AG E S A L E P R I C E

+38.5%

+10.2%

SALES PRICES

94.84%

94.17%

L I S T T O S A L E P R I C E R AT I O

133 AV E R A G E D AY S O N M A R K E T

67 AV E R A G E D AY S O N M A R K E T

MID TOWN

MORNING SIDE

HOMES FOR SALE

NEW ON MARKET

$858,862

$1,172,610

AV E R AG E S A L E P R I C E

+1.9%

+22.3%

SALES PRICES

95.90%

95.65%

L I S T T O S A L E P R I C E R AT I O

103 AV E R A G E D AY S O N M A R K E T

159 AV E R A G E D AY S O N M A R K E T

HarryNorman.com Data pulled on Feb. 18, 2019 of last 30 days | Properties $500,000+ % sales price change based on changes from February 2018

VIRGINIA HIGHLAND

SANDY SPRINGS

444

HOMES FOR SALE

134

NEW ON MARKET

$587,805

$898,852

AV E R AG E S A L E P R I C E

-10.8%

+11.4%

SALES PRICES

97.45%

97.21%

L I S T T O S A L E P R I C E R AT I O

136 AV E R A G E D AY S O N M A R K E T

100 AV E R A G E D AY S O N M A R K E T

2019 OUTLO OK M A R K E T

N E W S

b y H a r r y N o r m a n , R E A LT O R S Â®

LISTED BY: Amy Bubes

EMPLOYMENT

Metro Atlanta remains the economic engine for the state of Georgia. Approximately 70% of all job growth occurs in this region. The influx of start-ups, technology innovation centers, and significant inbound moves by existing national corporations will result in job growth of approximately 48,000 new jobs in 2019. Unemployment is expected to remain flat at around 4.1% for the metro Atlanta region throughout 2019.

INTEREST RATES

The typical home mortgage is the 30-year fixed rate loan. The interest rates for these remain at historic lows, but there is an upward trend. CoreLogic forecasts that the 30-year rate will be around 5.2% by the end of 2019, while other organizations predict that it will be closer to 5.5%. We believe that it will be closer to 5.2% based on the related factors impacting mortgage rates.

PURCHASING POWER

Metro Atlanta will remain among the most affordable major cities in the U.S. Given the upward trend in average home prices and interest rates, real wage growth will be needed to keep the affordability index in check. Our forecast is that more home buyers will consider alternative loan products, such as adjustable rate mortgages, to keep their monthly paymentswithin budget.

AFFORDABILITY

Among major U.S. cities, Atlanta remains one of the most affordable housing markets. Affordability is a measure of whether a typical household earns enough income to qualify for a mortgage loan on a typical home. An increase in personal income was just slightly behind average home price increases in2017 and is expected to be on par in 2018.

INVENTORY The number of active listings is on an upward trend. We expect this to continue into 2019 with inventory levels reaching closer to six months by the end of the year. With three to six months of inventory, we will remain in a neutral, or balanced, market for the entire year. This will place some downward pressureon the rate of average price increases, which will result in a higher affordability ratio. We are also watching for the potential start of high-rise apartment to condominium conversions. These have been non-existent for many years, but there is high demand in the under $500,000 price range especially first time home buyers who wish to live closer in the various city cores. This could be a realistic occurrence because 6,300 multi-family units were delivered in 2018 and another 18,382 units are under construction.

TRENDS Focus on improving transportation will continue into 2019. The multi-county agreement to coordinate public and rapid transit systems under the ATL umbrella will begin to show some much-needed progress in reducing the number of cars on our highways and surface streets. For housing, consumers are seeking high levels of integrated technology, purposeful functionality, and sustainable building materials and construction methods. Green is no longer a fad, it is the new normal. Neighborhood village design will continue to grow in popularity as more consumers are looking for ways to connect with their community without driving.

LISTED BY: Jennifer Key

LISTED BY: Cathy Boston

LIFE EVENTS Residential real estate movement tends to follow life events. First jobs, first homes, marriages (and divorces), household growth, and eventually “rightsizing”. We are experiencing some restraint of first-time homebuyers due to the rise in home prices, the lack of entry-level purchased housing options, and the weight of student loan debt. Today’s buyers are seeking homes closer to their work and where they want to play. This often means there are limited options for the first-time homebuyer closer in the city. However, we believe that many of the newer high-rise apartment buildings will be ideal candidates for condominium conversions starting in 2019. If priced to attract first-time homebuyers (approximately 45% of units sold), this will start the move-up chain reaction and all price sectors will benefit.

JOBS The metro Atlanta area accounted for approximately 70% of the 90,000+ jobs created in Georgia in 2018. Many of these 60,000+ jobs were filled by employees moving into the region, thereby increasing housing demand. While not all of these positions resulted in a home purchase, new housing permits in the region increased 10.8% versus 2017. According to the Georgia State Economic Forecasting Center, job growth in Georgia will slow in 2019. However, they project that approximately 48,000 new jobs should be created in metro Atlanta. This trend will continue into 2020 and the unemployment rate is expected to remain steady at around 4.1%.

Metro Atlanta has been and will continue to be the beneficiary of numerous jobs created by the relocation of major corporate divisions or headquarters, such as thyssenkrupp, Norfolk Southern, and NCR, to our area. In addition, Atlanta is now considered one of the top five up-and-coming tech meccas in the nation and our region is considered one of the largest producers of feature films in the world.

AFFORDABILITY Atlanta remains one of the most affordable major cities in the United States. Affordability is a measure of whether a typical household earns enough income to qualify for a mortgage loan on a typical home. As home prices and interest rates rise, home affordability declines. In 2018, average home prices in metro Atlanta grew approximately 7% to around $311,000. Interest rates for a 30-year fixed mortgage rate grew from approximately 3.8% to approximately 4.7% during 2018. CoreLogic is forecasting average home prices will increase 5.1% and 30-year fixed rate mortgages will increase to 5.2% in 2019. Both of these factors will impact housing affordability. Prices are expected to increase in 2019, but at a more modest pace than the last two years. Our market will still be better positioned than other major markets as they will also be impacted by these trends. * Variances exist by geography and price point

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Buckhead Office - 532 East Paces Ferry Road, Atlanta, GA 30305 | 404.233.4142 | HarryNorman.com | Betsy Franks-Broker The above information is believed accurate, but is not warranted. This offer is subject to errors, omissions, prior sale and withdrawals without notice

Selling Your Home - February 2019

Articles inside

2019 Market Outlook

What You Can Buy for $800,000

10 Secrets for Selling Your Home