Interview with Jenny Pruitt, CEO/Founder, Atlanta Fine Homes Sotheby’s International Realty

Jenny Pruitt, CEO/Founder Atlanta Fine Homes Sotheby's International Realty

I recently had the extraordinary opportunity to interview Jenny Pruitt, CEO and Founder of Atlanta Fine Homes Sotheby’s International Realty.  Jenny is an incredible leader and visionary.

AC: What is a benefit of the Sotheby’s International Realty brand to clients who are buying or selling a home under $1 million? Over $1 million?

JP: One of the greatest benefits of the Atlanta Fine Homes Sotheby’s International Realty brand is the power of our multi-million dollar marketing at all price points.

Whether your home is $200,000 or $2,000,000, we recognize that your home is your mansion. We utilize our professional, superior marketing strategy and pieces to successfully market your home regardless of price. Each one of our listings receives the same extraordinary marketing and representation from Atlanta Fine Homes Sotheby’s International Realty.

AC: Looking back at your time in residential real estate in Atlanta, what changes would you say have happened in the way buyers buy a home now compared to the past? Seller?

JP: I think now more than ever, buyers are looking for a good deal. They are waiting on the fence longer in an attempt to find rock bottom pricing. However, that is not always the best strategy. The Atlanta market is continuing to improve and interest rates will not stay as low as they are forever. Those buyers that are still on the fence might look back in a few months and realize this truly was the time to buy. It is always important to factor not only price into a home buying process but also the interest rate.

In regards to sellers, I think overall everyone is becoming more realistic. It is imperative to list your home for sale when it is absolutely ready. Gone are the days of “testing the market.” Sellers must have the home in its best condition and price the property right from the start. With so many homes on the market, buyers have plenty of options. As a seller, it is more important today to ensure your home stands out – and in a good way.

AC: What is something you enjoy about your role as CEO of Atlanta Fine Homes Sotheby’s International Realty? 

JP: I love to see other people succeed and know that I had a small part of their success.  One of the most exciting things about being a part of this great company is to see how marketing and global branding can become such a compelling story to the consumer. The visual impact and exposure for our listings is the best in the industry.

As the CEO Founder of this company it is so rewarding to grow a company with such extraordinary people!

AC: As someone who has purchased and sold many homes in your lifetime, what are a couple of important tips you may have for helping a family to feel at home in their new space?

JP: Moving into a new space is often both an exciting and stressful experience. I find that no matter where I am, as long as my husband, Bob, and my two precious Shih Tzus, Molly and Murphy, are with me, that I always feel at home.

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Four Financial Reasons to Buy a Home Now

As Dean Hartman said last week, the purchase of a home is a personal decision. However, we want to give everyone four great financial reasonswhy you should not wait before taking the plunge into homeownership.

Interest Rates Are Increasing

Interest rates have increased almost 3/4 of a point in the last six months. Most experts expect rates to continue to increase through the year. Interest rates along with price determine the overall cost of a home. Even with prices softening, if interest rates rise, it may be less expensive to buy now rather than wait.

The 30-Year Mortgage May Disappear

There has been much debate regarding government’s role in providing support for homeownership. There are several experts who believe If Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may be the end to the 30-year mortgage. This concern is addressed in MSN Real Estate’s Is it curtains for the 30-year mortgage?

QRM Requirements Could Be Much More Stringent

Here are proposed changes to the requirements for a ‘qualified residential mortgage’:

• Certain mortgage types would be eliminated
• You would need to put a minimum of 20% down
• You would need a minimum 690 FICO score
• The ratios of income to both the mortgage payment and overall debt would become much more conservative (28% and 36%)

There would be loans available to purchasers who don’t qualify under the new rules. However, they will probably be more expensive to the buyer (both in rate and costs).

Rents Are Expected to Increase

The supply of available rentals is decreasing and the demand is increasing. That will lead to an increase in rental costs throughout the year. The Wall Street Journal this week quoted a report by Reis, Inc:

“Expect vacancies to continue declining, and rents rising through the rest of 2011 at an even faster pace.”

 

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Buyer’s Market Spurs Confidence in Young Professionals and Affluent Homeowners

RISMEDIA, April 4, 2011—As the cold temperatures become a distant memory, and the spring selling season gains momentum, consumers have come to agree on one thing—now’s a good time to get off the fence and into the real estate market.

The American Express report says that consumers agree... now is a great time to buy a home.

This is the overall theme in the latest American Express Spending and Saving Tracker survey, a monthly survey that tracks the spending and saving habits of consumers in order to get an indication of what’s happening in the market.

“This month’s Spending and Saving Tracker provided an up-to-date look at various consumer trends and gave us the opportunity to assess how consumers are feeling about the current market in addition to gauging homeowner confidence,” says Leah Gerstner, vice president of public affairs at American Express.

“This month’s survey points to the fact that consumers overwhelmingly feel that we are in the midst of a buyer’s market,” she adds. The data also points to the fact that a seller’s market is at least a year away, which is certainly positive news.

While homeowners aren’t necessarily willing to settle for less than the asking price when selling their home, two of the biggest areas of interest in the latest survey deal with homeowners including home improvement projects on their to-do list, as well as the willingness to include concessions to get their home sold.

Home Improvements
“In looking at the results of our latest Spending and Saving Tracker survey, our thinking was that if consumers overwhelmingly view today’s market as a buyer’s market—which they do—they are likely to have plans to put more money into their home,” adds Gerstner.

In fact, the survey found that about 64 percent of homeowners currently have home improvement projects on their to-do list for 2011. While the plans are in place, the amount that homeowners are budgeting to spend has gone down quite a bit from last year. “Homeowners are looking for better ways to stretch their dollars, and many are looking toward energy-efficient home improvements that will pay off in the long run.”

Green energy improvements are amongst the list of home improvements many people plan to make in 2011.

The survey shows that among homeowners who are looking to go green, the most common items homeowners would spend their money on include energy-efficient windows and doors, insulation, roofing, heating and cooling systems as well as alternative energy systems.

Concessions
Another finding that stood out in the latest survey had to do with whether or not sellers were willing to make concessions to get their homes sold, especially in today’s market.

While 44 percent of sellers were willing to give away appliances during a sale—the biggest concession among young professionals and affluent homeowners—another 28 percent said they would take care of requested repairs in order to get their home sold.

“While a large majority of sellers are willing to make concessions to get their home off the market, the willingness to make concessions is down among young professionals when compared with the 2010 survey,” says Gerstner. “This is an important finding as it shows that young professionals are more confident in their ability to sell their homes today.”

“Homeowner confidence in today’s market has increased compared to last year,” says Gerstner. “In fact, the survey shows that the confidence level is pretty evenly split—42 percent of homeowners are confident they will get their asking price in today’s market, while 47 percent of homeowners aren’t that confident.”

Even though home values continue to be on the low side, young professionals and affluent homeowners are seemingly more confident in today’s market.

 

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Altanta Real Estate Forecast 2011: Maximum Buying Opportunity

I was recently having a discussion with Atlanta Fine Homes Sotheby’s International Realty president David Boehmig regarding the Atlanta real estate market forecast for 2011.   It seems like I have been getting a lot of questions about the real estate outlook for 2011 in Atlanta, and whether or not now is a good time to buy a home.

As we talked, we reviewed the following graph that was used at the National Association of REALTORS® (NAR) 2010 convention:

So the point of maximum buying opportunity is somewhere between “despondency” and “depression”…..hmmmm…..not too uplifting.

Then we looked at this chart regarding the five-year history of real estate in Georgia and the forecast for real estate in Georgia for 2011 from Forecast-Chart.com:

Hey wait….does this chart mimic the first one from NAR? We were definitely in a euphoric state in real estate in 2006, especially in North Fulton and Buckhead in Atlanta.

While I will note that the downward trend over the past four years has been heartbreaking to say the least, I’m very interested in the parallel of this chart and the other….that we may be approaching that (oxymoronic) sweet spot between despondency and depression. The Sweet Spot being the Maximum Buying Opportunity!

With interest rates still at incredibly low rates, and housing prices stabilizing, and approaching the Maximum Buying Opportunity, I am ready for buyers to buy some homes in Atlanta!

If you are ready to buy a home in metro Atlanta or know someone who is, please let me know.

Click here to see a previous post on Atlanta’s real estate forecast for 2011.

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