Intown Atlanta Real Estate Buyers Guide Archives

Just Because The Lights are Not On, Are Midtown Atlanta Condo Buildings Empty?

July 24, 2012 by Thom Abbott

This morning, I was following up on some blog comments, and found where one of my Midtown Atlanta Market Reports had been referenced on a local forum, city-data.com under the Atlanta section. It might be hard for you to find the specific comment thread, so I’ll share it with you. But the question raised by one person lead me to Just Because the Lights Are NOT On, Are Midtown Atlanta Condo Buildings Empty?

Comment #1:

Can someone provide evidence that there are lots of empty condos in Atlanta still? I keep hearing this on this forum, yet I keep seeing reports that condo inventory is dropping lower and lower intown. Here’s a Plaza Midtown update from this month, for example, which states that there are only 5 units currently for sale:

Midtown Atlanta Market Report | Plaza Midtown Atlanta May 2012

Especially after the Atlantic shifted from condo to apartments earlier this year, condo inventory has been drying up at a faster pace.

That comment was followed by Comment #2:

“A blog run buy a guy who is an agent primarily selling condos in midtown has an interest in painting a picture that now is the time to buy, buy, buy. Maybe it is, I’ve really got no clue. Just because the inventory gap is finally beginning to narrow does not mean it’s a healthy market.

I think a lot of that inventory finally hit prices where it was really attractive, after buildings were on their 2nd or 3rd developers because nobody could make a profit. I know two people that have lost condo lease renewals on condos in atanta because their landlord-owners couldn’t get approval to lease the unit another year due to caps. I’ve heard there are multi-year waiting lists at a lot of buildings to rent out your unit. The Atlantic took 300+ never-occupied units off the market earlier this year, and decided to rent them instead. The rental market is so strong right now, condos included.”

So, allow me to address BOTH of these comments…

First off, the Market report Comment #1 refers to actually had FIVE homes Under Contract, and there were only THREE Active Listings in the building that month. But to answer that question, quite simply, NO, THERE ARE NOT A LOT OF EMPTY CONDOS IN Midtown Atlanta. I’m currently posting June Market Reports, but here is a quick break down of the available inventory in the major buildings that I track.

Spire 8
Viewpoint 8
Metropolis 6
Plaza Midtown 4
Aqua 3
1010 Midtown 20
805 Peachtree 3
905 Juniper 4
Cornerstone 2
Tuscany 6
Park Central 6
White Provision 10
Dakota 1
Mid City Lofts 0
Mayfair 4

Considering some 2-3 years ago, many of these buildings had 15,20, maybe even 30 listings is a dramatic change in inventory.

But let’s address Comment #2. — Thank you, yes, I AM a real estate broker that focuses on the Midtown Atlanta Condo Market. Unfortunately, I’m not a painter. And it’s far from a Buyer’s market right now. It’s now a SELLER’S market. Price your Midtown Atlanta condo right, and it will most likely have multiple offers on it! Why? Just look at the numbers above again! Case in point, I have a Buyer that only wants to live in Mid City Lofts, and wants a 2 bedroom floor plan. What’s he doing? Sitting. And Waiting.

Comment # 2 was correct about rental permit waiting lists. I have a client who purchased in 2007…he just cleared the waiting list this week! He purchased another home in another building a year later and is currently #37 on the list in that building….after all this time!

Is it a Buyer’s Market? That depends on a number of things. If you feel the need to be mobile for a job transfer, or some other reason to be flexible to move (marriage, divorce, whatever) then buying is not for you. Also, if you think you might be moving in 2-3 years, buying again might not be right for you. But, that too depends on the purchase price. Last year, if you would of been one of the fortunate buyers to pick up a Cornerstone Village condominium for $50-70,000, you have almost no place to go but UP in value. $50K for a condo in the heart of Midtown Atlanta…that’s crazy! Now, those same units are up to the $80’s.

“I think a lot of that inventory finally hit prices where it was really attractive, after buildings were on their 2nd or 3rd developers because nobody could make a profit.”

Such is NOT the case. Only two buildings have “changed” and it was not developers, but the LENDER that went under. A portion of the inventory in Luxe Midtown Atlanta and The Atlantic at Atlantic Station were two such examples. 1010 Midtown is still being marketed and sold by Daniel Corporation and Selig Enterprises, the original developers. When Viewpoint Midtown sold out last year, it was still under Novare Group, the original developer.

A later commenter (now I can’t even find the thread) said something to the effect that Yes, Midtown condo buildings are empty, just drive down the street at night and half the windows are dark! That’s a pretty uninformed and unscientific way to determine the condition of the condo market in Midtown Atlanta. Windows can be dark from anything from good drapes, to vacation or business travel, out to dinner, asleep, the list could go on. I have sold condos to people that use them as a vacation home, so they are dark for a month at a time, but they are not “empty.”

Midtown Atlanta condo inventory is low right now because many homeowners are upside down in their homes. They owe more than the home is worth. If they are working, and able to make their mortgage payments, they can’t sell and move, because they can’t make up the difference at the closing table between the value and the loan. They will only qualify to do a short sale if they can prove a hardship, like job loss or income loss, medical reasons, or job transfer. And, even with a job transfer, some may not want the “hit” in their credit score from a short sale.

My Midtown Atlanta Market Reports can be used both ways….to Buy or Sell a Midtown Atlanta Condominium. But more importantly, they are to help the Midtown Atlanta Condo owner or buyer be informed about the market conditions.

Real Estate FAQ’s | Does My Interest Rate Really Matter?

July 5, 2012 by Thom Abbott

You’re getting ready to buy a new home or condominium! How exciting! We have been working together for the past few weeks to find you the right home. And part of that process is having our Team help y0u get your mortgage. So, I’m often asked by Buyers, Does My Interest Rate Really Matter?

Well it sure does! Currently, interest rates are at an all time low…Like BELOW 3 percent! But what happens when the rates start to go up, and as they say, what goes down, must come back up! Wait, maybe that was the other way around? Anyways…

Take a look at this chart and see the difference in buying power between 3.5% and 5.5% —

$237 per month could certainly make difference in the type of home you buy. In fact, if $898 per month (not including the taxes and insurance) you would have to look at a home that is $50,000 less in price to still be in your budget. $50,000 in a house or condo price can be a world of difference as to what you buy.

If you have been “sitting on the fence” thinking about whether to buy or not, just keep in mind that if, and when, interest rates go up, your buying power and the size of your home, might go down.

Real Estate FAQ’s Condo Living – Insurance Matters!

June 20, 2012 by Thom Abbott

805 Peachtree A Midrise Condominium — 805 Peachtree

See on Scoop.it – Midtown Atlanta Conversations and Condos

As I tell my neighbors and friends, when one lives in a high-rise condo – it is not a question of if water will ever invade your home but a question of when. So when you purchase a Midtown Atlanta condo, you NEED to have insurance!!!

This is an excellent article which goes more into Condominium Insurance requirements! Tim is a Property Manager in Midtown Atlanta and knows about these kinds of important things!

You might also want to see my article on Condominium Insurance
See on midtown.patch.com

Real Estate FAQ’s | Who Does The Closing Attorney Represent?

June 14, 2012 by Thom Abbott

You’ve often heard the phrase, “real estate is location, location, location.” Well, the location determines lots of things including your real estate transaction. In Georgia, your closing will be done at an attorney’s office. But, Who Does The Closing Attorney Represent?

I know (or read) in some states BOTH the Buyer and the Seller have an attorney that looks at contracts. But here in Georgia, a lawyer is really not required during the actual contract process. Later, if there is a dispute, rest assured you will then need one. Here in Georgia, when you do your closing to take possession of your new home, the Closing Attorney represents the LENDER that is providing your loan. As a Buyer, you have the preference to select your Closing Attorney in most cases. But when they prepare the closing documents, the are being done from a loan package that the lender has sent to the attorney.

The Purchase and Sale Agreement we use in Georgia has been written by a lawyer, and reviewed by brokers as well. It is the result of years of real estate transactions and “issues” that have come up. Now, most everything is covered in the body of the agreement, or in special stipulations and exhibits. There is no need for you to have an attorney for your real estate closing in Georgia.

If you are purchasing a foreclosure or short sale property, the Seller may have stipulated the attorney you must close with. This can be for various reasons. If a short sale, the closing attorney have have assisted in the actual negotiation of the short sale for the Seller, and the Seller is giving the attorney the opportunity to handle the closing as well. Is this a conflict of interest? Not really, as again, when the actual closing comes, and the documents are prepared, the attorney will be doing this on behalf of the lender.

In Georgia, Who Does The Closing Attorney Represent? They represent the lender.

Real Estate Frequently Asked Questions | What is Earnest Money?

June 12, 2012 by Thom Abbott

When you start shopping for your new Intown Atlanta Real Estate home or condominium, you’ll hear me say “Make Sure you bring your Checkbook!” Why? So you can write out your Earnest Money Check? Well….

What Is Earnest Money, you ask?

Earnest Money is a deposit towards the purchase of real estate made by a buyer to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money. The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations.

In some markets earnest money deposits could be as high as 5% of the sales price or more. In other communities, as little as $500 or $1000 is acceptable.

This deposit is credited to the purchase price of the property when you close and take possession. However, earnest money is also that money forfeited to the Seller of the property if you breach your contract. There are many times and points along the way of a Georgia real estate contract when the earnest money can be lost by the Buyer, depending on how the contract was written. The amount of money you “have on the table” can be the amount of money you lose.

It’s also very important that if you sign a contract that says the money has been paid, and you have actually NOT paid it, it can get both you AND your agent in trouble. It is acceptable to sign a contract and state the earnest money will be paid at a later date. A common practice here again is to receive earnest money once there is a binding agreement between the parties.

In some cases, the Seller can/will demand more Earnest Money to show your serious! I recently sold a foreclosure condo owned by Fannie Mae, and the Buyer was paying cash. They requested a TEN PERCENT earnest money deposit.

Be sure to discuss What Earnest Money Is with your real estate agent.

Real Estate FAQ’s Why HOA’s Have Fines

June 11, 2012 by Thom Abbott

If you have never lived in a condominium community, or a single family home community with a strong Homeowners Association (HOA) then you may have not experienced getting fined for being bad! So, Why Do HOA’s Have Fines?

In the simplest of terms, not everyone gets that you are living in VERY close proximity to your neighbors. Say about 6-8 inches!!! All that seperates you from your neighbor in a condo building is….a WALL! And on one floor, you can have 12-16 neighbors! And when you do certain things (things that are wrong in many ways) there has to be a way to remind you and all your neighbors that you have been….well BAD!

But in reality, the purpose of Why HOA’s Have Fines is to protect not only the common property of all the residents, but the overall quality of life in the building. If a resident repeatedly does something against the HOA rules, there has to be a way for the HOA Board to fix the situation. It’s not like an apartment complex where management can terminate a lease and ask you to move out! You OWN the condo!

For example, think about smoking. Personally, I can’t stand it. (I tried it in High School, and thankfully it did not stick with me) And if you have ever been around smoking, you know that an ashtray full of butts is a nasty thing at best. So, in a condo building, when you are done, why not just toss your butt off your balcony? Yeah, that’s a pretty cool thing to do, right? W-R-O-N-G!!!! How would you like to wake up in the morning and find your balcony (you live below the guilty guy) covered with butts? Better yet, remember that butt still has flame on it…and what do you suppose happens when it lands on a piece of balcony furniture with a cushion on it, or better yet in the landscaping on the amenity deck below? Did you know that trees, mulch and cushions BURN AND CATCH FIRE???

That’s Why HOA’s Have Fines.

I know you’re thinking, ‘What idiot would do such a thing?’ Well, plenty of them, unfortunately.

You’ve been at work all day, and Fido needs to go! But Fido’s got to go down the hallway, wait for an elevator, ride to the lobby and get out the door to the dog walk. Suppose Fido has an accident along the way….do you clean it up? Ya think, right? Well just imagine smelling the carpet on your elevator floor foyer after Fido’s tinkle…..YUCK! And WHO pays to have the carpet cleaned? EVERYONE!

That’s Why HOA’s Have Fines.

Landscaping, carpet, pools, pool decks, club rooms and such are all common elements in a condominium building, s-h-a-r-e-d by ALL residents. So when a few are bad apples, there has to be a way to help the bad apples out of the barrel. We can’t throw them out, but we can get them “healthy” with a few fines.

So what are some other common Condo HOA Fines?

As you can see, being a “bad resident” can get pretty costly in this condo building.

Just remember, we all have to live together and so that’s Why HOA’s Have Fines.

What Is Earnest Money, you ask?

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