This is an article I wrote for my Spring 2008 newsletter. The newsletter may be downloaded from the "Featured" page of this site.
--Katie

As a Realtor who specializes in the intown Atlanta residential marketplace, the number one question I am asked is "How's the market?" If you read the Atlanta AJC, listen to or watch the local news, it is easy to convince yourself that the market is poor. Foreclosures are up, sales are down. Right?

Not necessarily. I know I am busier than ever, and I pulled statistics for four key intown Atlanta areas to see if my experience is indicative of the intown market as a whole. These four areas basically comprise Buckhead, Midtown, Decatur, unincorporated DeKalb, and points in-between. Comparing the first two months of 2008 with the same period in 2007, over twice as many properties sold in 2007 (616 versus 299). So yes, sales volume is down. But the average sales price is UP in 2008 ($516,135 versus $453,199--almost a 12% increase)! Higher end homes in Buckhead account for some of this increase, but sales prices in Decatur and unincorporated DeKalb are up over 1%.

These statistics are for single family residences, i.e., houses. The statistics for condominium sales are not as encouraging, although not dire either. Comparing the same periods of time, intown condominium sales prices dropped 1.5% and sales volume was down almost 63%.

So what does this mean to you? I see it every day, and the statistics indicate it is true: homes that are priced right and show well, sell. The worst thing you can do in this market is overprice your home. Since sales volume is down and inventory is up, it is important to appeal to the pickiest buyer, and buyers heavily weigh price. Prices are not spiralling down in our neighborhoods, but they also are not rocketing up. This is not the time to float a high price and see if anyone will pay it.

Another reason to price right is the tightening of mortgage-necessitated appraisals. Appraisers are constrained to a small local area to find comparables for the subject house. If the subject house will not appraise for the agreed-upon purchase price, the deal falls apart.

But it's not just a good price that buyers seek--they also want...what they want. The house that sells needs to show well. It needs to be well presented, clean, and neat. If you've been putting off changing the old sink in the guest bath or painting the shutters, when it's time to sell it needs to be done.

One obvious corollary is that we are in a strong buyer's market. The last three buyers I've represented, all of whom bought in 2008, bought houses that appraised for OVER purchase price.

Don't be afraid of this market. It is complicated, but not off limits. If I can help you navigate it, please contact me.